EU budget ceiling threatens union
Irish Farmers Association (IFA) president John Dillon said he is very concerned the Government has not strongly and unequivocally supported the EU Commission on the required funding level for the EU budget (2007-2013).
“The Government strategy of almost total silence on this issue may yet have a high cost in terms of cutbacks in EU rural development funding to Ireland, and also in terms of pressure on the Common Agricultural Policy (CAP) budget to fund the single farm payment,” he said.
Mr Dillon said the commission proposed a budget ceiling of 1.24% of gross national income (GNI) of the 25 EU member states and an actual funding level of 1.14% of GNI, the same as the level for the period between 2000 and 2006.
The proposed funding level would have to accommodate the major and expensive enlargement, and also a new spending commitment arising from the “Lisbon Agenda” to make the EU more competitive on the world stage, he said.
Mr Dillon said the IFA acknowledges that Government statements have been supportive of the CAP and rural development elements of the Commission proposals.
However, the political reality in the EU is that any shortfall in the overall funding requirement from that proposed by the Commission will have negative consequences for every one of the main budget headings.
A recent example of this is the recommendation of a European Parliament committee for a national co-financing element for the CAP single farm payment budget. Mr Dillon said agriculture will be the main means of getting EU budget transfers to Ireland after 2006.
