Wednesday, 13 November 2019

Questions (82)

Joan Burton

Question:

82. Deputy Joan Burton asked the Minister for Finance the contributions of Ireland to the EU in each of the years 2015 to 2018 and to date in 2019; the estimated future contributions in each of the next three years from 2020 onwards; the principal reasons for the increase in contributions by Ireland; the basis of the calculation of the contribution; and if he will make a statement on the matter. [46552/19]

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Written answers (Question to Finance)

The contributions of each Member State to the EU Budget include Traditional Own Resources (Customs Duties) and a portion of VAT, with the remainder coming from Gross National Income (GNI).

The following table outlines the Irish contribution to the EU Budget for each of the 2015 to 2018 and to date in 2019. These figures include Traditional Own Resources.

Year

Payments to the EU Budget €m

2015

1,952

2016

2,023

2017

2,016

2018

2,519

2019 (up to 1 November 2019)

2,288

Contributions to the EU Budget are contingent on a number of variables, including updated GNI growth, the size of the overall EU Budget expenditure for any individual year and other EU Budget operational developments.

The current estimated contribution for the coming years is presented in the following table.

Year

Estimated Payments to the EU Budget €m

1% Ceiling

Estimated Payments to the EU Budget €m 1.11% Ceiling

2020

2,800

N/A

2021

2,575

2,900

2022

2,600

2,950

2023

2,775

3,125

* Note: contributions in 2021 under a 1% ceiling are lower than contributions in 2020 due to a number of factors: differing expenditure profiles, differing economic baselines (EU27 vs. EU28) and the inclusion of adjustments (balancing payments) in 2020 which are not part of the 2021 calculations yet.

As the Deputy will be aware, the annual EU Budget is agreed within the ceilings of Multiannual Financial Framework (MFF). The European Commission’s proposal for the 2021-2027 MFF was published on 2nd May 2018. This is the starting point of an important ongoing debate on the future of the EU Budget.

Ireland is forecast to see significant growth in our contributions as part of the next MFF as a result of continued economic growth, increased expenditure and the departure of the UK.