Good for Europe and Ireland, says Taoiseach

The Taoiseach hailed the EU budget deal as good for Europe, good for Ireland and, in particular, good for Irish farmers, at the…

The Taoiseach hailed the EU budget deal as good for Europe, good for Ireland and, in particular, good for Irish farmers, at the end of the marathon negotiations early on Saturday morning.

The agreement includes one of Ireland's key objectives: an apparent commitment that an agriculture spending deal struck in 2002, which is generous to Ireland, will not be changed until the agreed date of 2014.

The UK was among the member states seeking a change in this deal before it ran out, arguing that the high level of farm spending was no longer sustainable and was holding back the EU's capacity to provide generous funding to the new east European member states to help modernise their economies.

The total receipts for farming would now be €14 billion over the 2007-2013 period, he said. This would consist of €10.4 billion in direct payments to farmers and market support, €1.9 billion in rural development funding, €0.8 billion in structural funds and €0.9 billion in other miscellaneous receipts.

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Early on Saturday morning, immediately after the budget agreement, Mr Ahern told reporters that as recently as December 5th, Ireland had been set to lose as much as €500 million rural development funding. "These cuts have been reversed so that is a big boost for us."

In relation to the UK wish to see the farm spending regime changed before 2014, he said: "There were those who wanted to tamper with the Cap agreement but happily this hasn't happened." While there would now be a review of Cap which would report in 2008 or 2009, everybody accepted that changes in the Cap arising from this review would not come into effect until 2014, as had been agreed back in 2002, Mr Ahern added.

He said the EU would also continue to give strong support to the peace process in Northern Ireland. "The financial perspectives include an amount of €200 million for the future continuation of the EU peace programme. We got that into the conclusions as well.

"Overall the deal we reached was good for us. All our vital interests are being protected. In addition we remain a net beneficiary of the EU Budget for several years to come, notwithstanding our recent growth."