EU: Ireland could become a net contributor to the EU a year earlier than expected under the current British proposal for a new budget for the Union, officials said yesterday.
The disclosure, which was made following a special meeting of foreign ministers in Brussels, is one of several reasons why the Government will oppose the budget proposal.
Minister for Foreign Affairs Dermot Ahern said he had specific difficulties with proposals for steep cuts in rural development funds, changes to farm payments, the British rebate, the small scale of the budget and cuts in funds to new member states.
However, he held out some hope of getting a budget deal at next week's European Council if Britain agreed to make significant changes to its proposal and take on board the views around the table at the foreign ministers conclave yesterday.
"We could get agreement if there are significant changes on issues, particularly the rebate," said Mr Ahern, who would not speculate on whether Ireland would use its veto against the current proposal for the EU's financial perspectives 2007-2013.
Officials travelling with the Minister said the British proposal offered Ireland less EU funding than it would have received under a prior proposal made in June under the Luxembourg presidency.
They said that cuts to EU rural development funding and the loss of some farm payments when Bulgaria and Romania enter the bloc could accelerate Ireland's transition into an EU paymaster. Britain proposes to cut rural development funding to the 15 original EU members by €7 billion or 25 per cent in the period 2007-2013. This would translate into a cut of up to €80 million in funding to the Republic, which attracted an average of €315 million in EU funds for rural development in the current EU budget 2000-2006.
The proposed reduction in the EU budget from 1.06 per cent of EU gross national income to 1.03 per cent of gross national income would reduce contributions slightly, however, it is not expected to compensate for the huge cuts in rural development funds.
Mr Ahern said Ireland was also concerned that no provision had been made to the Common Agricultural Policy for the entry of Romania and Bulgaria to the EU in 2007. A proposal to begin a review of the entire EU budget was also a concern, he added.
Meanwhile, Britain came under massive pressure to amend its budget proposal from most member states yesterday, with some accusing the current EU president of failing to be an honest broker role in the negotiations due to its defence of its rebate from the EU budget.
French Foreign Minister Philippe Douste-Blazy demanded that Britain forego €14 billion of its refund from Brussels over seven years to share the cost of eastward EU enlargement, instead of the €8 billion offered in the budget proposal.
"Today the British are very isolated," he said. "Apart from Malta, no one accepted the British proposal." British Foreign Secretary Jack Straw said the package was open to change and promised fresh proposals early next week after intensive consultations, but he warned colleagues there was little room for manoeuvre.