Gerard Murphy (Cork North West, Fine Gael)
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Question 54: To ask the Minister for Foreign Affairs the progress being made in deciding the next seven year budget for the European Union; and if he will make a statement on the matter. [18624/05]

Dermot Ahern (Louth, Fianna Fail)
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Negotiations on the future financial perspectives for the enlarged Union 2007 to 2013 have now entered an intensive phase. Negotiations, with a view to preparing discussions by Heads of State or Government, are being conducted by the General Affairs and External Relations Council, supported by COREPER, with Finance Ministers contributing also through ECOFIN. The Presidency is conducting the negotiations on the basis of a "negotiating box" format which provides a framework for identifying issues on which there is broad agreement and for addressing also those remaining to be resolved.

The first version of the negotiating box was considered by Foreign Ministers at the General Affairs and External Relations Council on 15 March and 26 April. A conclave of Foreign Ministers on 22 May discussed a second version of the negotiating box, issued on 19 May, which put forward possible solutions and options across expenditure headings and in relation to own resources. The Taoiseach is having discussions today in Luxembourg with the President of the European Council, Mr. Jean Claude Juncker. The next ministerial conclave, scheduled for 12 June, will consider and prepare a further revised version of the negotiating box for discussions by Heads of State or Government at the European Council on 16-17 June. Finance Ministers will also discuss the negotiations at their meeting on 7 June.

The Government's approach to the negotiations is that the future financial framework should equip the Union adequately to meet the expectations of our citizens and the challenges of the years ahead while providing value for money for the EU taxpayer. As the Deputy is aware, the Government has consistently underlined the importance of respecting the October 2002 agreement on the Common Agricultural Policy. We have pressed for a fair outcome for our regions in terms of cohesion, while reiterating Ireland's commitment to solidarity with the new member states in this regard. The Government has also expressed our concern to limit the cost of any rebates and correction mechanisms.

The Luxembourg Presidency has carried forward the negotiations in a very professional and skilful manner. However, it is not possible to predict at this stage whether agreement at the European Council on 16 and 17 June will be possible.