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EU Budget.

Dáil Éireann Debate, Wednesday - 23 June 2004

Wednesday, 23 June 2004

Questions (51)

Dinny McGinley

Question:

35 Mr. McGinley asked the Minister for Finance the impact on the net flow of funds between Ireland and the EU if Commission proposals for a multi-annual framework for the EU budget were adopted; and Ireland’s key objective in negotiations surrounding the framework. [18677/04]

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Written answers

Last February the European Commission published its proposals for the framework for the EU budget for the period 2007-13, inclusive. It is known as the financial perspective. The Committee of Permanent Representatives in Brussels is chaired by the Irish Presidency. It was assisted by an ad hoc group of experts. It carried out a preliminary examination of the Commission’s proposals. The results of the examination were set out in an analytical report that the Irish Presidency submitted to the European Council last week.

The European Council indicated that it considered the report a useful contribution towards clarifying issues and positions and providing feedback to the Commission. The incoming Netherlands Presidency was invited to continue work on the issues identified. The Council stated that the further work should take full account of the range of positions of member states and respect the timeframe envisaged in the Council's multi-annual strategic programme. That programme envisages that the European Council will aim for agreement on principles and guidelines by December with a view to getting political agreement at its meeting in June next year.

At this early stage of the negotiations it would be premature to estimate the impact on Ireland of either the Commission's proposals or alternative scenarios. More detail will be needed to get a clearer picture of their effect on member states. The Commission has yet to publish its detailed legislative proposals and to issue a report on the EU's own resources that will form part of the negotiations.

Detailed, intense and tough negotiations lie ahead over the next year. The impact on the overall flow of funds between Ireland and the EU will essentially be determined both by the contribution that Ireland will make to the budget under whatever EU own resources arrangements prevail after 2006. It will also be determined by our receipts under the Common Agricultural Policy and cohesion or structural policy.

It is clear that Ireland is moving towards becoming a net contributor to the budget and this reflects our substantial prosperity. The timing and extent of the move will depend on the outcome of the negotiations.

Ireland's objective in the negotiations will be to secure the best outcome for us in the context of the most appropriate policies for the enlarged Union. We must ensure there is adequate funding for the already agreed CAP and seek an acceptable and equitable outcome for Ireland on the future cohesion policy. Our approach will also be influenced by our prospective net contributor status and the need to keep our contribution at the level appropriate for the financing of agreed EU policies.

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