An Taoiseach Micheál Martin has stated that attempting to hammer out an agreement with member states on the next long-term EU budget will be a challenge, but that his aim remains to agree a position before the end of the year.

The European Commission’s plans for the next budget had looked to reduce the ringfenced funding for the Common Agricultural Policy (CAP) by over 20% and although some concessions have since been made by Brussels, the future funding pot for farm payments will remain unsure until a budget agreement is struck.

Addressing the European Parliament in Strasbourg on Tuesday, the Taoiseach criticised the approach of seeking to draw down increased funds from the EU budget without moves to pay more into it.

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“One of our union’s greatest weaknesses is that we place such high demands on [the budget], but are unwilling to fund it appropriately,” the Taoiseach told MEPs.

“We have too often allowed ourselves to fall into a zero-sum approach which seeks to take funding from successful programmes in order to provide for urgent ones.

“In looking forward to the next budget, there are constraints which are unlikely to disappear, but we certainly have the obligation to show both ambition and urgency.

“Sometimes, trying to navigate the budget negotiations is like trying to reconcile the irreconcilable, but we must do it because Europe needs a budget.”

Ireland’s priorities

The Taoiseach laid out three areas on which Ireland’s presidency is to focus on as he spoke to MEPs.

These priorities are “the competitiveness of European economy, the need to protect the fundamental values on which our EU is built at home and abroad and security of our citizens”.

While neither CAP reform nor agriculture were referenced in the Taoiseach’s opening remarks to MEPs, he did signal that food security is among the chief achievements of the EU when responding to MEPs' remarks.

“There is no doubt and I have listened to many members speak of the centrality of food security and our farmers in particular,” he said.

“Our farmers have progressed over the last number of years and continue to innovate and we must continue to support food production.”

Commissioner’s timeline concern

Ireland’s European Commissioner Michael McGrath warned that a failure to secure agreement on the headline spending figures for the next long-term EU budget over the coming six months would see EU-funded programmes facing limbo in 2028.

Commissioner McGrath outlined the budget debate’s backdrop when he spoke to journalists in Strasbourg on Tuesday, stating that it is not only the “new and competing priorities” that pose roadblocks to agreeing the 2028-2034 EU budget.

Budget pressure is also coming from the looming due dates on repayments on EU COVID-19 era borrowings and the budgetary deficits in many member states which are net contributors to the EU budget.

“It is going to be a huge challenge to reach an agreement within the Irish presidency on the overall figures, but it is possible that it can be done,” Commissioner McGrath commented.

“It will require different stakeholders to move from their current positions.

“If everyone sticks to their existing positions, then there won’t be agreement by the end of the year clearly, so people will have to move, but the consequences of not reaching political agreement by the end of the year means that you are at serious risk of the vital funding programmes not being up and running on 1 January 2028.”