EU may end up cutting services and asking Ireland for more cash to settle a €30bn Covid bill
CUTS TO GRANT schemes and increases in the amount of money given to the EU each year by Ireland may be considered in order to pay back an annual €30bn bill which was racked up following Europe's Covid response plan.
€732bn was made available to member states during the Covid-19 pandemic, aimed at protecting the European economy.
The annual cost to repay that debt for the EU could reach up to €30bn every year from 2028.
The figure is a fifth of the EU's current five-year budgetary plan. A new spending plan is currently being developed and will give politicians a clear picture on how member states can afford to pay the bill back.
Fianna Fáil MEP Billy Kelleher, who is a member of the European Parliament's taxation committee, believes services like grant schemes may be cut and contributions from member states may be increased to raise the funds needed to repay Europe's debts.
The budget plan – what's called the multiannual financial framework – is due to be announced on 16 July.
Currently, the EU spends €160bn every year on schemes such as grant programmes for local authorities and infrastructure investments.
The budget could be cut back in order to make more funds available to repay the debts.
This could come at the cost of local community groups, who may rely on funding from European programmes to keep service hubs open or pay operating costs for community centres.
Another option for the EU is to instead increase the amount that its members pay in each year. In 2023,
Ireland paid €3.69bn in EU contribution fees for the annual budget
.
Ireland
currently pays more money into the EU's budget than it receives each year
.
Kelleher told
The Journal
: 'We're going to either have to increase the budget through contributions [from member states] or find additional resources.'
He added the issue will be a 'key debate' in the coming years.
Advertisement
It could involve tense discussions if member states, like Ireland, must foot the annual bill in order to keep services for groups that rely on the EU's funding schemes active.
Asked how the debate might be settled, the Ireland South MEP said he believes the EU may 'fall a little bit between the two'.
He added that there might be 'just a small' increase in contributions from member states, including Ireland.
Potential increases come at a time when Ireland is experiencing significant uncertainty around the economy, with the looming threat of tariffs by US President Trump.
There is a significant level of unpredictability felt in Brussels over the pending deadline.
Taoiseach Micheál Martin has said that
potential tariffs by the US on the Irish economy could impact the domestic budget
.
Analysis from the Central Bank suggests
US tariffs could lead to slower economic growth and a fall in the creation of new jobs
.
Corporation tax receipts – a massive earner for the state -
fell in May
and companies in Ireland with business in the US,
such as Guinness maker Diageo, are projecting the tariffs to cost them millions of euro this year
.
Kelleher said: 'A lot of member states who are making contributions are, financially, in very stringent times. If you look at France and Germany, for example. I mean, their two economies are really struggling.'
Asked if it would be difficult to justify an increase in Irish contributions in the scenario that US tariffs have a major impact on the economy, the MEP told
The Journal
that the amount of contributions is based on economic growth.
Current forecasts suggest, even if US tariffs have an impact on Ireland, the economy will continue to grow.
Speaking in Brussels this week, justice commissioner Michael McGrath said there are no forecasts predicting any major impacts to the European economy.
RRF repayments will begin in 2028 and continue into the long-term. A minimum of 37% of the funds were allocated to climate-related investments, while 20% were dedicated to the digital transition plan for member states.
Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.
Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More
Support The Journal
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sunday World
an hour ago
- Sunday World
Man who killed Irish soldier Seán Rooney believed to be on the run in Iran
The runaway killer fled Lebannon and is said to be hiding in Iran. The man who killed Private Sean Rooney is believed to be hiding out in Iran, according to sources. Hezbollah fighter Mohammed Ayyad has not been seen in over a year but Government and diplomat sources suspect he has fled Lebanon for Iran. The runaway killer was sentenced to death a few weeks ago on July 28 last by a military tribunal for the murder of the 23-year-old Dundalk soldier. But he wasn't in court for the conviction and the Lebanese authorities gave no indication where he was. Ayyad was initially released on bail over a year ago on medical grounds. But yesterday the Louth Sinn Fein TD Ruairi O'Murchu said it is unclear what his medical condition was. rooney News in 90 Seconds - August 16th He said: 'This guy seems to have vanished and nobody knows where he is." But Government insiders believe Ayyad has fled to Iran - the country which bankrolls the Hezbellah organisation in south Lebanon where Sean perished. One source said: 'We suspect he is in Iran and it is unlikely anyone will hand him over to face a death penalty. It is not a satisfactory situation but all we can do is keep the pressure on and see if we can get justice for Sean and his family." Ayyad was among a gang of men who opened fire on the UN peacekeepers convoy on December 14, 2022 in the village of Al-Aqbiya as they made their way to Beirut Airport. Sean lost his life while three other Irish soldiers, Private Shane Kearney, Corporal Joshua Phelan, and Private Nathan Byra were injured. The other Lebanese gunmen involved in the unprovoked attack got far lighter sentences. One got three months jail, another a one month jail sentence, another was fined the equivalent of appoximately €1800 and a fourth was acquitted. These are now being appealed by the Beirut government following pressure from Ireland and Sean's devastated family. The Minister for Defence Simon Harris and Sean's mother Natasha held a private meeting to discuss the case during the week. Mr Harris said: " The Government has repeatedly stressed the need for justice to be served in this case.. We have raised the issue with the UN, and the Lebanese authorities . This is a difficult time for his family and the 121th Infantry Battalion." The Lebanese authorities have not executed any prisoners in over 20 years so the Irish Government is pushing for the killer to be found to serve a life in prison instead. The Taoiseach Micheal Martin after the court verdict said: 'Sean was a soldier of great courage who put the safety of others before his own safety in the line of duty. He was brave and diligent. "Peacekeeping is the most noble cause of all and the role of the peacekeeper must at all times be honoured and respected." The Irish Coroner's Inquest into Sean Rooney's death has been postponed and no new date confirmed. Defence Minister Harris revealed in a reply to Deputy O'Murchu that the Coroner has received a response from the United Nations to her request that they should be an interested party at the Inquest and grant access to a number of UN reports. Details of the UN response have not been released publicly. Mr Harris also said that an independent review into the murder by Mr Michael Delaney SC is ongoing. This review is examining the internal tactics, techniques , processes, and procedures employed by the Defence Forces with a view to determining whether there are lessons to be learned for the circumstances surrounding Private Rooney's death. Mr Delaney nis expected to report with Mr Harris in the autumn.
Agriland
2 hours ago
- Agriland
Stakeholder group meets amid 'heightened uncertainty' around derogation
The Better Farming for Water Stakeholder Steering Group met in Teagasc Oak Park in Co. Carlow this week, amid "heightened uncertainty" around the nitrates derogation. The meeting discussed the emergent policy situation in relation to the "more intense linkage" between the Nitrates Directive and the Habitats Directive as Ireland engages with the European Commission to retain its derogation. According to Teagasc, the committee acknowledged the "heightened uncertainty of the current policy position for farm families", while "unanimously acknowledging their considerable commitment and actions in delivering improved water quality". "As further evidence, 3,895 farmer applications have been made to the €50 million Farming for Water EIP Fund, including a substantial number of applications by grain growers for the planting of catch crops to take up nitrogen over the winter period," Teagasc said. "The committee reaffirmed its belief that achievement of the objective of good, or high ecological status in our waterbodies is fundamental to retaining Ireland's derogation and compliance with the Habitats Directive and to maintaining the reputation for sustainability that Irish food enjoys. "It is clear that responsibility for this objective rests with 'all farmers' regardless of farm enterprise and not just 'derogation farmers'." The current challenge from the European Commission is for Ireland to "provide clarity and assurances on compliance" with the Habitats Directive in the granting of derogations as part of its application for continuance of the facility, Teagasc said. Jim Bergin, chair of the stakeholder steering group - which is comprised of representatives from Teagasc, government, farm organisations and more - said members "unanimously agree that a whole of government and whole of sector aligned approach is the best avenue towards optimising Ireland's position". He said it "should be considered not only in relation to the scientific approach to assessment, but also the future economic and social impacts of the plan on farm families". 'Even though there is much work to be done in order to achieve clarity on the current position, the committee fully acknowledges the importance of communicating with farm families at appropriate junctures in order to support them through this concerning period, and to reflect their progress towards improved water quality," Bergin said. Bergin said he is "really encouraged both by the recent data from the Environmental Protection Agency showing improvement in the nutrient content of our waterways, and more importantly, the collective, combined effort by all sections of the agriculture sector to address water quality.' At the meeting also, Noel Meehan, head of Teagasc's water quality knowledge transfer department, provided an update on the establishment by Teagasc of 'catchment implementation groups' focused on eight of the main river catchments and their sub-catchments. The groups will include representatives from relevant farm organisations, processors of meat, dairy and grain in the catchments, regulatory authorities, catchment-based community groups and advisory groups.
Agriland
2 hours ago
- Agriland
Former agri journalist Mairead McGuinness to run for presidency
Former MEP and European Commissioner Mairead McGuinnes, who started her career as an agricultural journalist, has secured the Fine Gael nomination to run as a candidate to become President of Ireland. Current President, Michael D Higgins will finish his second seven-year term at Áras an Uachtaráin in November. The President of Ireland (Uachtarán na hÉireann) is Ireland's Head of State. Every seven years the public elect a new president who can serve two terms in total. According to the electoral commission, some of the president's constitutional roles include: Representing the people of Ireland; Appointment of the Taoiseach, members of the government, judges and other officials; Summoning and dissolving the Dáil, and convening the Oireachtas; Signing legislation into law and/or referring Bills to the Supreme Court; Supreme Commander of the Defence Forces. To be nominated as a Fine Gael candidate, a candidate required the nomination of at least 20 members of the Fine Gael Parliamentary Party, 25 councillors and five members of the Fine Gael Executive Council. McGuinness's name will go forward for ratification at a party event in September. This will be the start of the Fine Gael presidential election campaign. Tánaiste and Fine Gael president Simon Harris said: 'The Fine Gael party is pleased to confirm Mairead McGuinness has been nominated as our candidate for the Presidential election and will be ratified by the party in September. 'Mairead has secured the support of the parliamentary party and the wider Fine Gael organisation. I look forward to working with her over the coming months. 'Presidential elections are always an important point for the country. I believe Mairead possesses all the attributes to bring our nation together at this important time.' Commenting on being nominated as the Fine Gael candidate for the role, Mairead McGuinness said: "I am conscious of the opportunity and challenge ahead, given the very important constitutional role of the President, and the esteem in which the office is held by the people. "Subject to my candidacy being ratified by the party in early September, I very much look forward to setting out my vision for the Presidency. And I look forward to working with you all over the coming weeks and months. "The campaign when it starts will be full-on," she added. A native of Ardee, Co. Louth, from a strong Fine Gael family, Mairead McGuinness is married to Tom Duff and they have four children. They now live near Drumconrath, Co. Meath. McGuinness was educated locally at the Convent of Mercy National School and Ardee Community School. She studied agricultural economics at University College Dublin (UCD), the first woman to qualify in the discipline and served as recording secretary of the Agricultural Society (Ag Soc) at the college. She began her career in journalism in RTÉ immediately after college. She worked initially as radio producer and later in research on 'The Late Late Show'. In more recent times McGuinness became well known as a presenter and driving force behind the 'Ear to the Ground' TV series. She also held the role of editor of the Farming Independent. Mairead McGuinness served two terms as chairperson of the Guild of Agricultural Journalists and helped develop the guild as an important network for those in food and farming communications. She also chaired the Consumer Liaison panel set up by the Minister for Agriculture and Food. This panel spearheaded changes in food labelling and traceability initiatives. Related Stories McGuinness was first elected to the European Parliament in 2004 representing the Midlands North-West region of Ireland. She was elected by European counterparts as vice-president and was also previously a full member of the Agriculture & Rural Development/AGRI Committee and a substitute on Environment, Public Health & Food Safety/ENVI Committee as an MEP. She was voted by her colleagues as MEP of the Year for Agriculture in 2011. In 2014 she was awarded the UCD Foundation Day Alumni Award in Agriculture and Food Science. In 2020, she was appointed European Commissioner for Financial services, Financial Stability and Capital Markets Union until 2024.
