Dáil Éireann debate -
Tuesday, 17 Nov 1998

Vol. 496 No. 6

Written Answers - EU Budget.

Ruairí Quinn

Question:

68 Mr. Quinn asked the Minister for Finance the contact, if any, his Department has had with the European Commission in relation to its document on the funding of the EU and matters arising therefrom; the nature and outcome of these contracts; and if he will make a statement on the matter. [23722/98]

We have stated our agreement with the Commission's view that the present own resources system does work well and is broadly equitable as contributions have become increasingly aligned with respective shares in GNP. We also support the Commission view that the net balance concept represents only a narrow view of, and fails to take account of the benefits accruing to member states from participation in the EU. In addressing this issue one must look to the significant economic advantages, which we all share, from the single market. As the Commission's report points out, CAP and Structural Fund expenditure benefit not only the immediate recipients but also give rise to spillover effects transcending national borders.

I have laid down a clear marker that the expenditure option which suggests national co-financing of the Common Agricultural Policy is completely unacceptable to Ireland. It would do very little to address the position of net contributors. If pursued it would be at the expense largely of less prosperous member states. In effect it would create a problem for the least prosperous member states without effectively solving the perceived problem of new contributors.