EU budget ‘faces more difficulties’

The rejection by France and the Netherlands of the EU constitution will exacerbate the existing difficulties in reaching agreement on the EU budget for the period between 2007 and 2013.

Fine Gael MEP Mairéad McGuinness, who made the prediction, said the debate about the future of the EU is intrinsically linked with the debate about the overall EU budget.

“France is a member of what has become known as the ‘club’ of the six countries wanting to reduce its financial contributions to the EU budget from 2007, despite having already committed themselves to a policy agenda, including the Common Agriculture Policy (CAP), based on no reduction in funding.

“Therefore, if the ‘club’ succeeds, there will not be sufficient funds available to fund the new single farm payment regime and the grand plans for new rural development policy beyond 2006.

“We could, at worst, be looking at further cuts in the single farm payment or a drastically reduced budget for rural development,” she said.

Ms McGuinness said that, from an Irish perspective, securing future funding is critical to meet the commitments made to farming under the Fischler reforms. The key problem is that no allocation has been made to fund the accession of Romania and Bulgaria to the EU in 2007.

Meanwhile, Irish Cattle and Sheep Farmers Association beef committee chairman Robin smith said beef farmers will have no appetite to back the EU constitution referendum unless the special beef premium overshoot dilemma is resolved satisfactorily.