EU budget row could delay state refunds

THE Government has responded furiously to a claim that EU payments to farmers could be delayed, but the state itself could be left waiting for months for refunds of up to €1.2 billion from Brussels.

European Parliament president Jerzy Buzek told RTÉ that the delay could result from member states’ ongoing row with the Parliament over the EU budget.

But a Government spokesperson insisted: “Payments to farmers will be unaffected.”

Farmers will be paid the balance of their farm subsidies as planned next week, bringing the total paid out since September to around €1.2bn, the Department of Agriculture has said.

Normally the European Commission reimburses the state the full amount early in the new year. Now, however, because of the row, the Commission can only spend one 12th of its annual budget each month so it is likely there will be a delay in refunding the Government the full amount.

A Government spokesperson said they believed there would be no delay in the refund since there were signs the row would be resolved before the money is due.

Britain led member states in insisting that the budget for the EU would be increased by no more than 2.91% for next year, despite them requesting new EU services, such as the Foreign Service.

The Parliament, which got new power under the Lisbon Treaty to negotiate the budget with member states, complained the council, representing member states, would not negotiate with them.

They agreed in conciliation talks to accept the increase which gives the EU a budget for 2011 of €126.5bn, but demanded a number of reforms including to the way the EU is funded.

So far the member states have refused to concede but talks are ongoing and the European Commission is drawing up a new budget proposal in a bid to resolve the impasse.

The EU is funded through a mixture of a percentage of VAT and customs duties from each member state and a percentage of their GNI.