EU Council adopts €5-bn reserve to help firms tackle impact of Brexit

The EU said the reserve money would benefit both public and private businesses.

“The prompt adoption of the reserve means that much-needed funding will soon be made available to the worst affected European regions and companies," Zvonko Cernac, Slovenia's minister for development and European cohesion policy, was quoted as saying by global newswires. Slovenia currently holds the European Council's rotating presidency.

The United Kingdom’s departure has affected many parts of the EU economy, with the fishing sector particularly at risk. EU fisheries face a 25 per cent reduction of their catch value from UK waters, according to the bloc's executive commission.

Fishing rights were one of the main roadblocks during Brexit negotiations. December's trade agreement provides that EU vessels can continue to fish in UK waters but with a reduced share of catches.

The relief plan requires participating EU nations to earmark a minimum of $278 million for fisheries, with the possibility of spending much more from their allowances to compensate the sector.

Fibre2Fashion News Desk (DS)