Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

Like many, I am relieved that a deal has been done. I congratulate the Taoiseach and the Minister of State on whatever part they played in it.

There are many different views in the House about the budget, and there is a kernel of truth in each of them. The budget is not enough, but it is never enough. I would prefer to have seen more grants and fewer loans, but we must remember that we, as citizens of Ireland, are underwriting those loans. Some programmes have been cut and others have received extra resources, including the very welcome €5 billion Brexit fund. At the end of the day, though, what matters is the overall balance and the not insignificant point that 27 member states, represented by 27 different Heads of State and Government with one eye on Europe and another on their own countries, actually managed to agree a €1.82 trillion fund. Crucially, for the first time ever, the member states of the EU have demonstrated solidarity by borrowing together and spending mutualised debt. When people speak of an historic outcome, they are, in fact, correct.

One of the benefits of the €750 billion fund is that the European Commission can borrow money ultra cheaply in light of its triple A+ rating. Some member states have ratings as low as triple B-, but because the European Commission can borrow so cheaply, we can all access the money at that rate. This is an important point. It is often seen as a side benefit, but it matters.

I also want to highlight that the EU budget, big and all that it is, is somewhere between 1% and 2% of what all 27 member states spend nationally each year. It is important but its rationale is that it adds value. What we contribute and what we get back is important but if that is all there is then we should keep our own money and spend it. The budget is not a pass the parcel of money around Europe. We invest in the European budget so that we have a Single Market, the free movement of people, goods and services and so that we work together be it on health research, a digital single market or on supporting farmers to produce safe, quality, traceable food.

In the final analysis what most people really care about is how the money is spent. We will discuss and debate that over the coming months and year in this House but I would like to flag a few important issues now. The Taoiseach said that the CAP budget had increased from 28% to 31%, which is true but it still represents a 9% cut which is significant. There is an additional €300 million and that is welcome but it is crucial that the co-funding risks for Pillar 2 are increased so that our rural development funds can help to support family farms. That is a decision that we take in this country. I agree with the proposals on convergence. As I said previously to the Minister for Agriculture, Food and the Marine, I want to see that convergence continuing during the transition period.

The Taoiseach spoke about €1 billion for the regions, which is good but the regional assemblies must be the decision-makers. They cannot be a mere conduit for funds. The final point I want to make has been made by other speakers. There is conditionality attached to this money with its link to the European semester. I had a quick look at the country specific recommendations for Ireland for 2019 and 2020 because they represent our obligations under the semester. One of the four recommendations last year and this year is that we broaden our tax base. While recommendations are not written in stone they clearly point the direction of travel.

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