Every Irish person contributes €53.20 a month to the EU. We should be prepared to pay more
European Commission's
publication of its draft of the
union's
€2 trillion 2028-2034 budget, the Multiannual Financial Framework (
MFF
), once again opens up a tortuous two years of likely acrimonious budget negotiations.
Twenty seven states and the
European Parliament
must unanimously agree – in talks as complicated as four-dimensional chess – a new package of political imperatives, from defence, immigration, climate change, industrial innovation and inflation to safeguarding historic programmes such as
CAP
and cohesion. By all appearances, this will be an utterly impossible reconciliation.
Helping to steer a path towards it will be the onerous central challenge of
next year's Irish presidency
. And complicating that challenge for cash-strapped Dublin negotiators will be a plethora of threats to programmes that are particularly important to us to us – CAP; changes to delivery mechanisms; new demands such as defence; and arguments about the scale of increasing burdens on budget net contributors.
In truth, according to Zsolt Darvas from think tank
Bruegel
, MFF spending needs to double to finance the climate transition and pay off its Covid-19 debts. His views echo those in
an important report last year
from former Italian prime minister Mario Draghi, calling for an additional €800 billion a year of private- and public-sector investment to revive Europe's economic competitiveness.
READ MORE
The commission's budget is more modest, some €1.816 trillion (plus €165 billion in pandemic recovery debt repayments), up from the current 1.1 per cent of union gross national income to 1.15 per cent. And all at a time when member states are all adamant they will not pay a penny more, although commission president Ursula von der Leyen insists unconvincingly their contributions do not need to go up.
[
The Irish Times view on the EU budget: major barriers to getting an agreement
Opens in new window
]
Irish farmers should be pleased to see direct income payments to farmers ring-fenced. However, agricultural economists here worry that rural development and environmental support payments are to be hived off into a broader regional fund pot and are likely to be squeezed – similar to the cohesion fund for poorer regions, which was once an important Irish staple.
MEPs from the regions are also already screaming blue murder at the 'renationalisation' or centralisation of regional funding – 27 national plans would replace more than 500 current programmes. They are alarmed it would substantially reduce regional autonomy and funding which makes up more than one-third of the current budget.
Von der Leyen's juggling trick also involves fancy footwork in respect of expanding the union's 'own resources' – or funding from non-member state sources. Such taxation needs to be targeted so that it does not impinge on the domestic tax base and revenues of governments. Most controversially this time is the suggestion of levying a tax on companies with a net annual turnover of at least €100 million. This is expected to generate only €6.8 billion but is already facing determined opposition. Speaking like an Irish finance minister, Germany's chancellor Friedrich Merz has warned that 'there is no question of the EU taxing companies, as the EU has no legal basis for this'.
Other proposed new 'own resources' include taxes targeting electric waste (around €15 billion annually), tobacco products/companies (€11.2 billion), a carbon border tax (€1.4 billion), and a tax on revenues generated by emissions trading (€9.6 billion).
EU capitals will also worry how the new budget would affect the politically sensitive difference between national contributions and receipts.
[
Proposed €2tn EU budget would increase funding for defence
Opens in new window
]
From 1973 to 2018 Ireland was a net recipient, in nominal terms, of more than €40 billion in EU funds. By 2023, 10 countries, including Ireland, were net contributors, and 17 were net beneficiaries. Top of the net contributors were Germany (€19.8 billion), France (€9.3 billion), with Ireland in eighth place (€1.3 billion). Poland was the top net beneficiary, receiving €7.1 billion. Ireland was second in net contribution per head, at €240 per person.
Courtesy of our growing relative wealth (measured dubiously by 'GDP per cap') we displaced Luxembourg in 2024 in paying the most to the EU budget on a gross per capita basis – with every Irish person contributing some €53.20 a month to the union's coffers compared to the EU average of €25.20 and Germans' €29.70. Bulgarians contributed €10.70 a month. Net cash contributions have been seized on by many national politicians and the press as evidence that the countries of the supposedly indolent south are unfairly milking the system at the expense of fiscally responsible northerners. But the real benefits of membership to the countries of the north amount to far more than can be measured by such direct transfer figures.
Apart from the progressive aims of redressing EU-wide economic imbalances, helping poorer neighbours and levelling the playing field, the EU provides huge indirect and non-cash benefits disproportionately to net contributing members such as Ireland. These include financial rewards from the European Central Bank in maintaining financial stability and financial returns, valuable access to the single market and research grants through the Horizon programme.
Making the political case for increasing our contribution yet again will not be easy but it must be done.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
4 minutes ago
- Irish Independent
US confirms 15pc tariff to include pharma, but more ‘horse trading' yet to come
A fact sheet published on the White House website yesterday showed the tariff rate would apply to pharmaceuticals and semiconductors. The clarification should bring an end to the confusion that has surrounded this aspect of the EU-US trade deal, which was finalised by US president Donald Trump and European Commission president Ursula von der Leyen on Sunday. The multinationals based here, such as Pfizer and Eli Lilly, export about €40bn of pharma to the US each year. There is still uncertainly over many key issues, with discussions continuing on whether products such as wine and spirits will be exempt from the 15pc rate. US commerce secretary Howard Lutnick cast many of the issues surrounding the US-EU trade pact as still up for discussion, saying there was 'plenty of horse trading left to do'. EU Commission trade spokesperson Olof Gill described the framework trade agreement yesterday as a 'political commitment', rather than a legally binding document. He said that Brussels and Washington were now working on a joint statement, which will be treated as 'an agreement in principle', that will give the bloc a 'political road map to where we take it from here'. 'Both sides are working very hard now to get the details of that signed up,' he told RTÉ Radio 1. 'We're hoping to do that before the deadline of August 1 set by the US. 'What we're talking about here are political commitments. This joint statement I mentioned isn't a legally binding document. These are commitments.' In relation to agriculture and the fact that Northern Ireland and the Republic have two different tariffs applied to their goods, he said details 'can be worked out'. ADVERTISEMENT 'We're not at the end of the process here, we're at the start of the process,' he said. There is still scepticism that the EU will be able to fulfil its promise to buy $750bn (€650bn) of American energy over three years. The bloc's energy imports from the US were less than $80bn last year. The fact sheet published yesterday by the US stated: 'As part of President Trump's strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15pc, including on autos and auto parts, pharmaceuticals and semiconductors.' The sectoral tariffs on steel, aluminium and copper will remain unchanged, with the EU continuing to pay 50pc. Deal creates enormous opportunities for American-made and American-grown goods The fact sheet claimed that the 'colossal' trade deal will enable American farmers, the fishing industry and manufacturers to increase their sales to the EU, thereby reducing the trade deficit. It also said the EU will remove all tariffs on US industrial goods that it imports, which creates 'enormous opportunities for American-made and American-grown goods to compete and win in Europe'. In terms of US food imports to Europe, the fact sheet said the two sides will work together to address non-tariff barriers that affect trade. These barriers are likely to include certain food standards that are applied to beef and chicken, and 'streamlining requirements for sanitary certificates for US pork and dairy products'. Mr Trump's administration is conducting a separate investigation of pharma imports to America to assess if over-reliance on them is a threat to national security. The expectation is that the results of this investigation, expected next month, will lead to a hefty tariff on pharma. Mr Trump has threatened a levy of up to 200pc as he attempts to strong-arm US pharma companies to re-shore their manufacturing operations in America. Niall Cunneen, associate partner for Ireland and the UK at global consultancy group Sia, described the White House confirmation of the 15pc tariff rate as a 'blow to Ireland'. 'This is a sector that underpins roughly 20pc of our GDP and employs tens of thousands of people in high-value roles across the country,' he told the Irish Independent. 'The idea that this could be swept up in a political deal, without legal guarantees or clear carve-outs, is concerning.' 'If the US follows through with additional pressure under the Section 232 investigation, we could face a slow erosion of future investment and a lasting effect on long-term planning from multinationals based here. 'We're now looking at a future where one of our most important industries is directly exposed to US political cycles and trade tactics.' Public Expenditure Minister Jack Chambers said yesterday that the risk of a 30pc tariff would have been 'severely damaging for the Irish economy' and said the 'stability and the predictability of what's being set out here gives ... certainty to the business community, and gives certainty to investments'.
Irish Times
an hour ago
- Irish Times
The good, the bad and the ugly of the EU's budget draft
Earlier this month, the European Commission fired the starting gun on a 30-month marathon negotiation on the EU 's next seven-year budget. Brussels has proposed a nearly €2 trillion common spending pot that it claims faces up to Europe's 'new and emerging challenges'. Does it? First, the good. Brussels has taken some steps towards reallocating funds to today's priorities: infrastructure, defence, security, research and energy and industrial resilience. The exact numbers are already the subject of fights, even inside the commission itself. But just as important is the lack of controversy around the methodological changes to the budget. The commission rolls agricultural subsidie s and transfers to poorer regions into new national plans, to be proposed by governments, approved by the EU and checked against delivery to release funding. This marks a big shift, modelled on the post-pandemic recovery fund. Grumbles can be heard about insufficient funding and a power grab by national governments from local officials. But not about the basic principle of cash in return for demonstrable, mutually agreed reforms. READ MORE That is a quiet revolution from the habit of simply sending cheques to farmers and local governments; the most remarkable thing about the budget draft was the least remarked upon. Another change seemingly received without objection is the streamlining of the budget into fewer funding streams. This simplification should speed up disbursement and ease planning and co-ordination. Next, the bad. The commission has reprioritised its budget with a view to the changing geopolitical landscape. The commission's new spending priorities show it has listened to warnings in the Enrico Letta and Mario Draghi reports. But it has missed the opportunity to integrate budget politics more closely with strategic calls to unify the single market and boost productivity. A case in point is the ill-judged idea of lump-sum taxes on EU companies with large turnover. Brussels is right to seek new revenue sources. But any business levy should be designed within its planned pan-EU corporate code. Getting a share of the corporate tax base from companies choosing this regime is better than slapping a new tax on top of existing ones. The budget also fails to address the need for more equity funding for companies in key strategic sectors, set out convincingly in a report by the European Policy Centre (EPC) that proposes an off-budget instrument resembling an EU sovereign wealth fund making equity investments in the bloc. This is a good idea. So is the EPC's call to securitise EU-funded common European industrial and infrastructure projects. Both would boost the growth of badly needed pan-EU capital markets. A third weakness is the commission's lack of attention to providing investors with pan-EU safe benchmark securities. The budget draft does nothing to promote this. More common debt is a politically explosive idea. But it need not be raised for subsidising poorer members; a stronger justification is to fund an EU sovereign wealth fund. [ Every Irish person contributes €53.20 a month to the EU. We should be prepared to pay more Opens in new window ] Finally, the ugly. Brussels commits the statistical sin of using nominal numbers, which mainly reflect inflation, to claim a large increase in the budget. The relevant measure of resources is the share of gross national income (GNI) the budget allocates to common priorities. The last budget came to a little over 1 per cent of EU GNI. Adding in the special post-pandemic debt-financed fund, the total came to 1.7 per cent. The new draft budget is for 1.26 per cent of GNI, but after deducting the money needed to pay down common debts, it's a mere 1.15 per cent – an amount that will be further whittled down in talks. A proposal to spend a third less of an already tiny share of resources makes a mockery of all the strategic evangelising. This is a budget that ensures continued geopolitical marginalisation. As the great American philosophers Ralph Waldo Emerson and Omar Little have argued, if you 'come at the king, you best not miss'. If the EU wants to hold its own in world affairs, it must give itself the resources for it. Getting more now will be much harder after its initial lowballing. Success is more likely for off-budget ideas such as the EPC's, common borrowing for a sovereign wealth fund and a delay to paying down existing debt to free up funds. Both EU and national leaders accept they face unprecedented, perhaps existential, risks. They must now admit those cannot be addressed on the cheap. – Copyright The Financial Times Limited 2025
Irish Times
8 hours ago
- Irish Times
Injunction granted restraining Gavin Pepper from filming home of Pepper Finance boss
An interim injunction has been granted against a far-right councillor restraining him from filming and besetting the home of the head of debt firm Pepper Finance Corporation (Ireland) Ltd DAC. The High Court injunctions against Independent Dublin city councillor Gavin Pepper (who has no connection to Pepper Finance) also restrain such activity against members of Ian Wigglesworth's family. The managing director has five children, including one with Down syndrome, who was visibly upset after being recently filmed playing outside his home. The injunctions also prohibit Mr Pepper from obstructing, harassing, threatening, pursuing or intimidating Mr Wigglesworth and his family, who live in a Dublin housing estate. Cllr Pepper, of Plunkett Green, Finglas, Dublin, must also remove social media posts which contain video footage taken outside Mr Wigglesworth's home. READ MORE Brian Conroy SC, for Mr Wigglesworth and Pepper Finance, said Cllr Pepper has a well established association with the far right and social media posts promoting far-right ideas. This injunction application, brought on a one-side-only represented (ex parte) basis, was urgent in the context of recent events, he said, adding that his clients were concerned about the possibility of such events becoming more serious. Mr Wigglesworth, in a sworn statement, said Cllr Pepper has engaged in a series of threats and acts of intimidation against him and Pepper Finance. On July 25th, he arrived at Mr Wigglesworth's family home, set up a video camera with tripod and began filming his family, including his son with Down syndrome. It was particularly distressing that Cllr Pepper sought to disparage his son in a recent social media post which was published on X, Facebook and Instagram, he said. A second defendant in the case is David Rafferty, of Plunkett Green in Finglas, Dublin, who holds a mortgage account with Pepper has admitted to disseminating personal information about Mr Wigglesworth, including his address. He is sued arising from the sequence of events that followed but there was no application for an injunction against him. Cllr Pepper has published a total of 14 social media posts in relation to Mr Wigglesworth and his company. The posts are offensive, defamatory, threatening and replete with misinformation, Mr Wigglesworth said. In Cllr Pepper's first post on June 12th, he signalled his intention to attend the homes of named people. On July 25th, he threatened to camp outside Mr Wigglesworth's home if he didn't 'come to the table' in relation to the interest rates Pepper Finance charges. In commentary with his posts, Cllr Pepper said he had 'all the information about the staff' at Pepper Finance and another company. This prompted threatening comments from other social media posts. Mr Justice Brian Cregan also ordered Cllr Pepper be restrained from publishing the staff's addresses. He said he would deal with the issue of extending the injunctions to Pepper Finance itself when the case returns on Thursday.
