Gerald Nash (Louth, Labour)
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240. To ask the Minister for Finance his views on the recent agreement regarding the European recovery fund; and if he will make a statement on the matter. [18725/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, on 21^stJuly 2020, Heads of State and Government reached agreement on the Post-2020 MFF and Next Generation EU, totalling €1.82 trillion. Difficult discussions took place over four days but I welcome this agreement and think this is a fair and balanced outcomeand demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions agreed to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new Multiannual Financial Framework, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.

I welcome the fact that we have substantially protected the CAP Budget for Ireland and successfully reversed the damaging cuts proposed two years ago. The package agreed includes a special allocation of €300 million for Ireland in recognition of challenges facing our agricultural sector. I also welcome the inclusion of a significant Brexit Adjustment Reserve worth €5 billion to help cushion the impact on those Member States and sectors most affected by Brexit.

Ireland is to receive significant EU funding under the recovery plan to target the immediate response to the Covid crisis – approximately €1.28 billion in 2021/2022, with further funding in 2023 to be targeted at those most impacted economically by the crisis.

It is especially welcome that a special allocation of €120 million for a new PEACE PLUS programme, to which Ireland and the UK will also contribute, will build a significant fund to further reconciliation and North-South cooperation. This will continue the work of the current PEACE and INTERREG programmes in a post-Brexit context.

In terms of Own Resources, I specifically welcome the retention of the VAT based Own Resource, and also welcome the increase in the share of customs collection costs retained by Ireland from 20% to 25%, which will help address the cost of custom infrastructure and other Brexit related costs.

It is also welcome that we have achieved substantial budgets for other priority programmes such as Horizon Europe, Erasmus+ and the EU’s neighbourhood and development cooperation programme. Government will ensure that Departments and agencies work to make sure we maximise Irish draw-down from relevant programmes.

Gerald Nash (Louth, Labour)
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241. To ask the Minister for Finance if social conditionality as implemented in other EU countries has been attached to the July stimulus package; and if he will make a statement on the matter. [18726/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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By social conditionality I take the Deputy to mean ensuring that a basic level of social protection for the most vulnerable people is included in Government decisions.

The aim of the July Stimulus is to help get Ireland’s businesses back on their feet and get as many people back to work as quickly as possible. The package consists of over fifty measures and represents the largest ever stimulus of its kind at a cost of €5.2 billion.

While I am always conscious of broader societal goals in the work of the Department of Finance, and such considerations were key in the drafting of the July Stimulus package, the specific issue of social conditionality is a matter for the Minister of Employment Affairs and Social Protection.