Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

155. To ask the Minister for Finance the EU programmes or funds outside of the multiannual financial framework that Ireland has paid into from the year 2014 to date; any receipts from same, by programme or fund, by year; and if he will make a statement on the matter. [20355/24]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department does not have responsibility for the management of specific EU funds and programmes, which are managed individually by Departments with the relevant lead policy responsibilities. In this regard, I understand the Deputy has submitted a similar question to a number of Departments.

My Department is primarily responsible for the management of Ireland’s contribution to the EU Budget, which currently takes place within the context of the Multiannual Financial Framework (2021-2027).

In general, Member States' contributions to the EU budget are not assigned to specific expenditure categories. Instead the contributions are made to the overall Own Resources pool in accordance with the principle of universality.

However, there are exceptions to this rule which are referred to as assigned revenue, as provided for by Article 21 of the Regulation (EU, Euratom) 2018/1046.

Due to the extraordinary and tragic circumstances of the ongoing war in Ukraine, the Oireachtas recently gave its approval to me in my capacity as Minister for Finance, via the enactment of the Finance (State Guarantees, International Financial Institution Funds, and Miscellaneous Provisions) Act 2024, to enter into guarantee and contribution agreements regarding EU Macro Financial Assistance supports to Ukraine which were provided during 2022 and 2023.

In essence this legislation provides a statutory basis for the Minister for Finance, acting on behalf of State, to enter into the relevant guarantee and contribution agreements and for any payments required to meet commitments under the agreements to be made from the Exchequer Central Fund. Any such payments would be made in the form of external assigned revenue to the EU Budget.

The legislation necessarily reflects the different financial arrangements around each support programme. It allows for a potential Irish contribution of up to €76.9 million related to EU member state guarantees for the 2022 EU Macro Financial Assistance programme, which would only be called in the event of non-repayment of the loans by Ukraine.

The legislation also provides for a contribution of up to €63.625 million related to an interest cost subsidy that the EU Member States will provide to Ukraine in respect of the 2023 EU Macro Financial Assistance programme. I expect that payments of this interest cost subsidy will commence during 2024 and the Member States are awaiting confirmation from the European Commission regarding the details of the payments for the remainder of this year.

It should be noted that the contribution agreements between the Member States and European Commission cover the period until the end of the current MFF in 2027. It is possible that the subsidy will be paid from within the next MFF from 2028 onward, however this will be subject to negotiation.

If it is not agreed that this cost will be met from within the next MFF, the existing contribution agreements between the Member States and the European Commission would need to be renewed. If this is the case approval of Dáil Éireann would be sought by the Minister for Finance to do so in accordance with the legislation recently enacted.