Seanad debates

Thursday, 8 May 2025

Nithe i dtosach suíonna - Commencement Matters

EU Budgets

2:00 am

Photo of Malcolm NoonanMalcolm Noonan (Green Party)
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Gabhaim buíochas leis an Aire Stáit as teacht chuig an Teach ar maidin. Déanaim comhghairdeas leis. As this is my first formal engagement with the Minister of State, I congratulate him on his appointment and wish him all the best for his tenure.

In the context of the challenges around meeting climate targets from every sector under our national climate action plan, the ongoing work around the development of a national nature restoration plan in line with the nature restoration regulation and the development of a coherent network of marine protected areas around the Irish coast, as well as many other opportunities for Ireland in socioeconomic development, will the Minister of State outline to the House the Government's engagement on negotiations around the shaping of the next EU multi-annual financial framework, MFF, covering the period 2028 to 2035? With a proposed budget of €1.2 trillion, the MFF represents an incredible opportunity for Ireland and all member states to make progress towards a zero carbon, nature resilient and durable future for all of our citizens.

It is vital that we build on the good progress made in recent years towards decarbonisation, including working with farmers, in particular, on water quality and nature restoration and efforts to scale up such work from pilots to the mainstream. I launched a number of LIFE projects, European Innovation Partnership, EIP, projects and other short-term initiatives, typically projects over a five- to seven-year cycle, during my time as a Minister of State. At every event, landowners told me they loved participating in schemes they saw tangible results from and, critically, got paid for. However, it is frustrating that there was no afterlife to such projects. Learning outputs and results were compiled and a project, with all of its expertise, then fell away. Burren LIFE was probably the most high-profile of these types of projects. Brendan Dunford was very critical that the results-based payment scheme developed by the project, which mainstreamed into the agri-climate rural environment scheme, ACRES, is now no more.

We negotiated with Fianna Fáil and Fine Gael a €3.515 billion climate and nature fund, a capital fund that could extend and embed measures for nature, water and climate. We have yet to see the publication of the detail of that fund from the Government. My hope is that it will not be raided to shore up deficits in Uisce Eireann's capital programme.

Equally, I am concerned by the soundings coming from civil society that the MFF will be raided to ramp up defence and security spending across the EU at the expense of environmental measures, LIFE projects and climate initiatives. It may also impact negatively on humanitarian programmes at a time when many member states are cutting international aid budgets.

In Ireland, it could mean a reduction in Common Agricultural Policy, CAP, funding. The Commission closed public consultation on the MFF on Tuesday of this week. It was a poorly communicated process, which was cumbersome and complex, and largely excluded citizens and civil society from meaningful public participation. How many groups or organisations were aware that it was even open?

In that context, what has the European Commission representation in Ireland done to promote civil society engagement in this process? How is the Government going to ensure that Irish voices, including those of rural communities, family farmers and NGOs, are heard and used to help to shape Ireland's position on the MFF? If CAP, environmental supports and humanitarian funding are to be reduced, how will the Government propose to fill the gap to support rural communities and measures that Irish farmers are implementing on ecosystem services to support local authorities and other State bodies to deliver on climate and nature actions?

The Government should lead on a national conversation on the MFF. A figure of €1.12 billion sounds like a an eye-watering amount of money, but it is a drop in the ocean if siphoned off for weapons, missiles and fighter jets. Facilitating a public participation process, inviting submissions and engaging with key stakeholders are vital in advance of the next round of negotiations. In every statement I made as Minister of State to help get the nature restoration law over the line, I stated clearly that there needed to be EU money on the table for implementation. The MFF is that money and it will be agreed on the watch of the Irish Presidency next year.

Let us work together to ensure that it is a fund that benefits citizens, communities, farmers, fishers, foresters and vulnerable people caught in conflict and the ravages of climate change and not weapons manufacturers which are already enjoying record dividends for shareholders on the back of human suffering. How we shape influence and negotiate the next MFF could well be an enduring and defining legacy of Ireland's next EU Presidency.

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

Photo of Malcolm NoonanMalcolm Noonan (Green Party)
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In his remarks the Minister of State said that the Department states that the MFF should reflect the needs of Irish citizens, yet there has not been sufficient engagement. A poll from European Movement Ireland that was released today should be of interest to all Members and it looks at falling trust in European institutions and in the EU generally. It is a slow feed but it is of concern. What better way to restore trust in European institutions than by having public engagement in one of the most significant things it does, which is its budget and the MFF? My message to the Minister and the Government generally is that there needs to be civil society engagement on this issue. I note the points the Minister of State made about defence spending and it is of concern to many people, to NGOs and to the wider sector that LIFE programme funding and CAP funding will be cut at the expense of defence spending. It is critically important the Government engages with civil society and sees it as an opportunity to engage with civil society in a positive way on how the next MFF is framed.

Photo of Colm BrophyColm Brophy (Dublin South West, Fine Gael)
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I will, of course, convey the Senator’s views to the Minister. I will take a moment to acknowledge the European Movement Ireland survey. It is a very interesting survey. As a Chair of the Committee on European Union Affairs for two and a half years, I found European Movement Ireland to be an organisation that does incredibly good work in terms of promoting engagement and civic involvement in Europe and bringing Europe closer to people and people closer to Europe. I commend it again on its excellent survey and thank the Senator for his remarks.