Wednesday, 20 November 2019

Questions (80)

Éamon Ó Cuív

Question:

80. Deputy Éamon Ó Cuív asked the Minister for Finance the projected increase in the net contribution by Ireland each year to the EU from 2021 to 2027 in the event of Britain leaving the EU with a deal on 31 January 2019; and if he will make a statement on the matter. [47905/19]

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Written answers (Question to Finance)

Given that the UK represents one of the largest net contributors to the EU Budget, Brexit is likely to have a significant impact on the contributions of all Member States, including Ireland. The exact impact will be dependent on the nature of the final agreement between the EU and the UK regarding its involvement with the EU Budget post-Brexit.

Under the Withdrawal Agreement between the EU and UK, the UK had agreed to continue to pay into the EU Budget for the remaining years of the current Multiannual Financial Framework (MFF), as if it was still a member. This would result in no additional impact on Ireland’s contributions or receipts up to the end of the current Multiannual Financial Framework in December 2020.

The European Commission proposal for the 2021-2027 MFF (published May 2018) has been prepared on the basis of a UK departure. The overall 2021-2027 MFF proposal is 1.11 % of the post-Brexit EU-27's Gross National Income (GNI). This is the starting point of an important ongoing debate on the future of the EU Budget. There has been no final agreement on the size of the MFF yet however.

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 GNI.

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.

My Department monitors and analyses the potential impact of Brexit on our EU budget contributions on an ongoing basis. The following table shows the projected contributions Ireland would make in each of the years 2021-2027 under the Commission's proposal. This analysis is based on the best information and data available at the time in question.

Projected Irish Contributions to the MFF 2021-2027 under Commission Proposal (€bn) (current prices)

Year

2021

2022

2023

2024

2025

2026

2027

Total (round, €25m)

€2.900

€2.950

€3.125

€3.275

€3.500

€3.675

€3.850