Seán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

I wish the Tánaiste well in these negotiations. We would all agree with his statement that Ireland is in favour of a properly funded and properly functioning EU with the right mix of priorities, a fair allocation of resources and a focus on jobs and growth. As the Tánaiste said, the EU needs a budget that is fit for purpose. I agree that it is time to break the vicious circle between banking and sovereign debt. While there may be some disagreements across all parties in the House, at the end of the day we all genuinely appreciate that these negotiations are vitally important for Ireland and for countries right across Europe.

The multi-annual financial framework is set to be slashed by €50 billion yet we are told it will be used to stimulate growth and create jobs. Many people would see a contradiction there. I recognise there is pressure from other countries to cut the budget, that is understandable. If the MFF is used to promote growth and yet it appears it will be cut, what message does that send? Demand for this funding will be greater now than ever.

In regard to the criteria for determining which regions fall into which category for cohesion spending, the Minister mentioned the Cyprus Presidency. Does it represent a good deal for Ireland's regions in terms of accessing EU Structural Funds? Does the proposal from the Cypriots take sufficient account of the economic stagnation across Europe? For those regions that come under a transition category, are there any other mitigating factors in the criteria that will allow regions, some of which are in Ireland, to access more funds or a higher co-financing rate? A brief from the Department to the committee on the options available and where we stand would be helpful. There is a concern in regard to the formula. The position has changed greatly right across Europe. Are we dealing with the realities of today or the realities of the past? Perhaps the Minister would comment.

The Minister referred to the banking and fiscal union. The Constitutional Affairs Committee of the European Union Parliament which appeared before the committee last week suggested that a referendum may be needed on the issue. Does the Government have any advice on that issue?