Written answers

Tuesday, 7 November 2023

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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325. To ask the Minister for Finance the annual contribution to the EU by the Exchequer in each of the past ten years, including an estimate of the contribution forecast for the whole of 2023; the income from the EU to the Exchequer in each of these years, including an estimate for this year; whether it is expected that Ireland's net contribution to the EU will increase in the coming ten years; and if he will make a statement on the matter. [48304/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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The annual net contribution of Ireland to the EU Budget (payments) and income (receipts), from 2013 until 2021 is outlined in full inTable 1below.

Table 2 outlines Ireland’s actual gross contribution (payment) for 2022 together with current forecasts for the gross contribution (payment) for the remaining years until the end of the current Multiannual Financial Framework period which ends in 2027.

Data on Ireland’s EU Budget receipts is published annually for the previous year in the Department of Finance Budgetary Statistics, before the end of each year.

For instance, 2022 receipt data will be published before the end of 2023. My Department is currently finalising the collation of the receipts data for 2022 and, it is not yet possible to confirm Ireland’s receipts from the EU Budget for 2022, but this information will be published by my Department before the end of the year.

My Department does not forecast EU Budget receipts due to the inherent difficulties in doing so, as receipts are contingent on a number of factors such as project implementation. That said, my Department anticipates that Ireland’s receipts for the remainder of the Multiannual Financial Framework (2021-2027) will be in the range of approximately €2 - 2.5 billion each year.

Table 1. EU Budget receipts and payments 2013-2021

Year Receipts from EU Budget €m Payments to EU Budget €m Net Receipts €m
2013 1673 1726 -53
2014 1420 1686 -266
2015 1783 1952 -169
2016 1622 2023 -401
2017 1779 2016 -237
2018 2006 2519 -513
2019 2000 2432 -432
2020 2116 2569 -453
2021 2543 3507 -964

Table 2. EU Budget contributions - actual payment 2022 and payment forecasts 2023-2027

2022 (€m) 2023 (€m) 2024 (€m) 2025 (€m) 2026 (€m) 2027 (€m)
3557 3950 3950 4125 4325 4500

Based on my Department’s forecasts, Ireland’s contribution to the EU Budget will continue to grow over the remainder of the Multiannual Financial Framework (2021-2027). This is dependent on a number of factors, in particular Ireland’s economic performance which is reflected in the system of EU Budget contributions based to a considerable extent on the existing Gross National Income own resource.

In addition, a potential midterm revision of the Multiannual Financial Framework (2021-2027), which is currently under negotiation at EU level, would likely result in increased expenditure over the remainder of the of the current Multiannual Financial Framework and could impact on Member States' EU contributions.

Beyond 2028, agreement on the composition of the next Multiannual Financial Framework will be key to determining Member States' contributions over the next long term EU Budget cycle, which should cover a period of 5 or 6 years if following longstanding practice.

Potential future changes to the system of own resources, which fund the EU Budget, could also affect Member States' EU Budget contributions if agreed. The European Commission brought forward proposals in relation to new own resources in June and I recently set out my concerns on a proposed new own resource based on a statistical measure of Corporate Profits. On this, I would refer the Deputy to my response to a Parliamentary Question from Deputy Doherty (PQ 43392/23).

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