Written answers

Tuesday, 25 May 2021

Photo of Gerald NashGerald Nash (Louth, Labour)
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175. To ask the Minister for Finance the status of the ratification by Ireland of the Council Decisions (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom; and if he will make a statement on the matter. [27488/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, EU leaders reached agreement in July 2020 on the Multiannual Financial Framework (MFF) and Next Generation EU (NGEU) package totalling €1.82 trillion. This is a good deal for Europe, and is an unprecedented response by the EU to assist with the impact of the Covid crisis. It is a strong signal that the EU is determined to chart the pathway to recovery together and to show that Europe works for its citizens. The support towards climate transition, research and development and digital agendas will be invaluable.

The agreement by leaders also made a number of changes to the current system of Own Resources, which we welcome:

- Simplifying the VAT-based own resource;

- Member States shall retain by way of collection costs 25% of Traditional Own Resources (Customs Duties), increase from 20%;

- Introduction of plastics based contribution based on non-recycled plastic packaging; and

- The legislative basis for borrowing to fund the NGEU recovery instrument.

The Own Resources Decision effectively translates the changes taken by the European Council into legal form and is required to underpin the funding commitments agreed to at Council level. As such, in accordance with Article 12 of Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union, Ireland completed its ratification procedure by way of Government Decision on 11 May 2021. This was communicated to the Secretary General of the Council of the European Union on 12 May 2021, through Ireland’s Permanent Representation to the EU in Brussels. Confirmation of Ireland's ratification of the Own Resources Decision was conveyed to the members of the Oireachtas Joint Committee on EU Affairs and to the Parliamentary Budget Office on 20 May 2021.

I hope that the remaining Member States will also soon finalise their ratification of the Own Resources Decision, which will ensure that much needed NGEU funds can be disbursed to Member States.


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