Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

The negative impact of Brexit on the CAP budget is glaringly obvious. I reckon the UK contributes €12.9 billion to EU coffers. Clearly, unless addressed by significantly increased contributions by the member states, there will be a significant negative impact on CAP and direct payments to farmers.

The EU budget is around 1% of EU GDP. That is far too small for a Union of 520 million people, or approximately 445 million people and 27 member states once the British have left. There is glaring incapacity at European level to support the ambitions of the EU treaties. That is the kernel of this. There will be debate as to whether we are for a Union capable of helping member states to tackle serious economic and social deficits. The current range of crises facing the EU is great and includes Brexit. There will be a serious rethink by member states about the budget and there will be resistance to the EU reforming and developing its own resources as envisaged in the treaties. There is huge resistance. We will have to be behind that, otherwise our State is going to be asked to contribute from its own coffers. Such a proposal will not meet with uniform acceptance. There will be sectoral resistance. We had better start getting this right and informing farmers who will have to come on board in a conjoined way and supportive way. Whoever is in government here by then will face a huge challenge.

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