Seanad debates

Thursday, 8 May 2025

Nithe i dtosach suíonna - Commencement Matters

EU Budgets

2:00 am

Photo of Colm BrophyColm Brophy (Dublin South West, Fine Gael)

I thank the Senator and again apologise that the Minister is not available to reply to him directly. I will reply on his behalf.

The European Union budget, the MFF, as the Senator knows, currently runs until 2027. The current MFF was agreed in 2020 at the height of the Covid pandemic, which left a very clear mark on that framework.Most notably, alongside the MFF, the Next Generation EU recovery instrument was established to give a significant boost to Europe’s recovery, through a one-off programme of borrowing for common debt. To prepare for the next budget round, the Commission is expected to bring forward its proposals for the post-2027 MFF in July. It is realistic to expect negotiations to conclude in 2027, in time for the new MFF to begin in 2028.

It is important to note that negotiations between member states will not commence until after the Commission shares its proposal, which is most likely to be in early July. The Commission’s proposal will come as a package, including an MFF regulation setting out the architecture and sectoral basic acts, which will include the detailed budgetary and policy provisions as well as the implementing rules. In practice, the MFF’s key details will be agreed by consensus at the European Council.

In March, the European Council had its first exchange of views on the post-2027 MFF, where An Taoiseach expressed Ireland’s overarching priorities. The Department of Foreign Affairs and Trade and Department of Finance are also actively working across Government to develop our national position across the EU budget to ensure our views are well communicated to the Commission. It is clear that the next MFF will set a precedent in many ways, given the new and emerging demands on the budget across several policy areas. In addition, the repayment of the common debt taken on in the current MFF period will commence.

The Government will work with our European partners to ensure the MFF reflects the needs of Irish citizens, maintains continuity and predictability, and delivers on the overall ambitions of fostering a competitive and secure Europe. Ireland is keen to play its part as a constructive partner in the MFF negotiations.

With that said, it is evident there will be pressure on the balance of the existing budget, in which the long-standing CAP is a key feature for Ireland, forming the vast majority of our EU funding. How these new priorities are balanced against traditional policies and the trade-offs which will emerge, including avoiding significant increases to member states’ EU budget contributions, will be important features of the negotiation of the post-2027 MFF.

While acknowledging the challenges ahead, the Government’s view is that the CAP remains a core priority as a thriving sector of our economies, not only to Ireland but right across the EU. Ireland will advocate for a robustly funded CAP as direct payments underpin the economic sustainability of European agriculture and are vital in safeguarding a fair and sufficient income for farmers.

The next MFF must also reflect that security and defence is more urgent than ever before. Ireland will continue to advocate that the Commission takes account of specifics of island and peripheral regions with large maritime areas and subsea infrastructure to protect. The security and connectivity of energy and communications infrastructure is also of common interest for both Ireland and the EU.

The EU budget has an intrinsically important role through the visible way it improves the lives of our citizens. Programmes such as Erasmus, Creative Europe and, in particular for Ireland, the PEACE programme have value and make our Continent a better place to live. Across its negotiation, which Ireland will have a pivotal role in, especially during our Council Presidency in 2026, we will work to continue to ensure the MFF reflects EU priorities such as defending the rules-based international order, human rights, climate action and sustainable development.

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