Vol. 576 No. 6
78 Mr. J. Bruton asked the Minister for Finance if he will make a statement on his views on the Sapir report prepared for the European Commission President on the redistribution of funds and economic priorities within the EU budget. [29989/03]
In July 2002 a high level group of independent experts was invited by the EU Commission President, Romano Prodi, to analyse the consequences of the two strategic economic goals set by the European Union for the decade ending in 2010: to become the most competitive and dynamic knowledge based economy with sustainable economic growth and greater social cohesion, the so-called "Lisbon Agenda"; and to make a success of the pending enlargement by rapidly raising living standards in the new member states. The group was chaired by Andre Sapir, a Brussels-based academic who is also a policy adviser to the Commission.
The group's report, published last July, puts forward an agenda focusing on where EU policies and their economic management can make the greatest contribution to achieving the declared objectives of sustainable growth with more and better jobs, continuing price stability and greater economic and social cohesion in the enlarged EU. Two key issues of concern for Ireland are the proposals regarding a sharp reduction in EU agricultural expenditure and the relative weight of national contributions to the EU budget, which should be reduced in favour of revenue sources with a clear EU dimension.
The most direct implication of the Sapir report for Ireland is to reduce and reformulate the assistance available from the CAP. A mid-term review of the CAP was agreed last June. This agreement runs to 2013. The negotiations were tough for all concerned. It does not make sense to reopen this agreement. The CAP should give stability and predictability to farmers. Farmers are entitled to expect that the agreements reached on the CAP and the funding necessary to sustain it should be incorporated in the EU's planning for the post-2006 period.
Ireland is totally supportive of the main agenda for making the EU the most competitive and dynamic economy in the world. Both in our role as President of the EU and as a member state participating in the debate about future EU financing, Ireland will support an agenda for competitiveness and economic dynamism. We will also give a constructive hearing to Commission proposals which progress this agenda without prejudicing agreed EU policies.
The reference to the EU being funded by more distinctive EU revenues may reflect Commission wishes to have a more independent and visible EU revenue. Intensive discussions are taking place in the Commission with regard to post-2006 EU financing and we expect the Commission to publish its proposals in January. We will examine its proposals when they come out. We will not know until then whether the ideas of the Sapir report will be reflected in the Commission's proposals. While we will judge the Commission's proposals by reference to agreed EU policies and their impact on Ireland, it is my view that the current EU own resources system works well. It has always delivered the resources necessary to finance agreed Union expenditure and member states' contributions broadly reflect their ability to pay. We do not need a more complicated system to fund the EU or direct EU resources and taxes.
