On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1755 as regards the amounts allocated to… the Member States under the Brexit Adjustment Reserve

A. Context and Legal Basis

The proposal is based on Article 175 TFEU which is the relevant legal basis for the specific provisions of the Regulations to be amended within the EU Cohesion policy.

The Brexit Adjustment Reserve (BAR), had been established in 2021 with a total allocation of EUR 5.5 billion (current prices) to help Member States address the adverse effects of Brexit.

In view of other pressing crises (coronavirus pandemic) the possibility of transfers from the BAR to the Recovery and Resilience Facility (RRF) was introduced by the EU co-legislators in the REPowerEU Regulation amending inter alia the RRF and the BAR Regulations. In accordance with that, 23 out of 27 Member States submitted a reasoned request for transfer of resources from the BAR to their RRF plan, out of which 10 Member States requested a full transfer. The total amount of transfer requests reached EUR 2.1 billion, corresponding to 38% of the total financial envelope. The remaining BAR allocation stood at EUR 3.4 billion, of which EUR 584 million (in current prices) was envisaged to be paid in 2025 upon receipt of documentation attesting to sufficient eligible expenditure.

On 29 February 2024, the Council with the consent of the European Parliament adopted the mid-term revision of the MFF in response to the unprecedented geopolitical events, triggered by Russia’s aggression against Ukraine. As part of the mid-term revision of the MFF, the maximum provisional allocation to the BAR as set out in Regulation (EU) 2021/1755 was reduced by EUR 584,264,090.

This amount is now formally deducted from the BAR’s budget, without impacting funds already disbursed or transferred to the RRF.

B. Objective

The proposal constitutes a technical, financial and legal adjustment that does not alter the scope or objectives of the Reserve. It aligns the BAR Regulation with amendments decided by the Member States and validated by the European Parliament during the MFF mid-term revision.

Once adopted, the amended BAR Regulation will enable the Commission to update subsequent implementing acts, such as the Implementing Decision (EU) 2021/1803, which establishes the final national allocations.

C. Procedure in REGI

At the REGI meeting on 13 October 2025, the Commission representative was invited to present the commission proposal. Following political consultations, Coordinators decided on 6 November 2025 to approve this file without amendments in accordance with simplified procedure Rule 52 (1). This procedure was approved by the whole REGI committee on 11 November 2025 according to the relevant internal rules.

D. Assessment of the rapporteur

Your rapporteur considers that proposal represents a technical, financial, and legal adjustment aligning the BAR Regulation with the amendments adopted by the Member States and endorsed by the European Parliament during the MFF mid-term revision.

The adoption of this legislative act is important to ensure legal certainty and financial consistency with the revised MFF and the 2025 EU Budget. A clear legal basis is essential for the validation of the prefinancing and the redistribution of the remaining BAR funds among Member States.

He therefore suggests that this legislative act be approved by Parliament without amendments, under the simplified procedure set out in Rule 52(1) of the Rules of Procedure.

The rapporteur declares under his exclusive responsibility that he did not include in his report input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

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