2026-04-21

240. Deputy Shay Brennan asked the Tánaiste and Minister for Finance the latest update on his Department’s preparations for Ireland’s EU Presidency; the way in which he plans to oversee budgetary discussions on the next multi-annual financial framework post-2027 in a manner that will safeguard Ireland’s fiscal interests; and if he will make a statement on the matter. [26559/26]

I am seeking an update on the Department's preparations for Ireland's EU Council Presidency and, in particular, how the Minister intends to approach the negotiations on the next multi-annual financial framework, which Ireland will chair. Can the Minister advise how he intends to safeguard Ireland's fiscal interest in these negotiations?

The Presidency is taking place in a few short months’ time, as the Deputy said, so I thank him for highlighting this. The Presidency of the Council of the EU is a critical focus for all of us in government, the Oireachtas and my Department this year. It represents an important opportunity for our country to shape European policy priorities, including the EU’s economic and financial agenda. I am pleased to say that our preparations are well under way across both policy and operations. Our Presidency priorities are being prepared in line with the EU strategic agenda for 2024-2029. Of course, those priorities will depend on the progress of the Cyprus Presidency, which comes before ours. We will take stock of this and stakeholders' views before we publish our final Presidency programme in June. However, driving progress on the post-2027 multi-annual financial framework will be an important focus. The Minister for Foreign Affairs and Trade and I jointly lead the development of Ireland's positions on the MFF. This involves close co-operation with other Government colleagues. During our Presidency, Ireland will progress various elements of the wider MFF package, from overarching negotiations to sectoral files. The precise tasks for Ireland will depend on the state of play at the end of the Cyprus Presidency in June. The overarching negotiations on the MFF are advanced through the General Affairs Council, GAC, where we are generally represented by the Minister of State, Deputy Thomas Byrne. The Department of Foreign Affairs and Trade, in consultation with all relevant Departments, is preparing for these meetings. The Economic and Financial Affairs Council, ECOFIN, which I will chair during Ireland's Presidency, focuses on the revenue side of the EU budget - own resources - and the management of the annual EU budget process. The European Council, attended by the Taoiseach, provides strategic guidance throughout the negotiations and will ultimately reach political consensus among member states on the file. Ireland, as Presidency, will ensure close and constructive co-operation with the President of the European Council. The European Parliament will also be required to give its consent to the regulation for the MFF after the European Council reaches a political consensus. Our intention, during our Presidency, is to act as an honest broker and to lead negotiations in a manner that protects the interests of the EU. Intensive preparatory work is under way.

During our Presidency, Ireland will chair and oversee the MFF negotiations, and will do this while simultaneously facing a reduction in our own allocations under the new framework due to our continued economic growth. I am not saying that is a bad thing. In one sense, we are in an advantageous position as we get to set the agenda and we are present at every negotiation. However, given the expectation that we act as impartial chair, does the Minister accept that this could work against us when it comes to pursuing our own fiscal interests? If so, how does he intend to manage that?

It is a key question, and one the Government has been considering. We took a decision earlier this year, during my time as Minister for Foreign Affairs and Trade, to outline Ireland's MFF budgetary priorities much earlier in the cycle for that very reason. The Deputy is right. When you take up the Presidency, there is an advantage to that, of course, and it is an influential and important position to have, but you are also expected to act as honest broker. Ireland took a decision, and the Government agreed, to formally agree our budget priorities for the MFF and communicate them to the Commission at an early stage. We have also had a number of Commissioners here, including the budget Commissioner, the agriculture Commissioner and others, to engage with me, the Taoiseach, the Minister for foreign affairs, the Minister for agriculture, the Minister of State with responsibility for European affairs and others. We have used the period in early 2026 to set out our priorities to work with other member states that share a like-minded view. The challenge with the European budget, not too dissimilar from this place on occasion, but maybe on a larger scale, is that everybody has ideas on what to spend money on but people are less enthusiastic about funding it. That is also the challenge. Europe has a long list of ideas it would like to spend money on but the real substance of the debate is how we manage to prioritise those ideas. We have all heard a whole variety of things. Ireland, as an experienced member state in its eighth Presidency, will play an important role. I assure the Deputy that protecting our own national interest has been a priority in the early part of this year.

There is an expectation that the agreement on the MFF will be reached before the end of 2026. Ireland effectively carries the responsibility for delivering one of the most complex and contested negotiations in recent EU history within that six-month term. These negotiations involve deeply-held national interests across 27 different member states. There are significant disagreements on spending priorities. Overall, there is a total budget of approximately €2 trillion. Does the Minister believe that agreement is genuinely achievable within that timeframe? What commitment can he give that Ireland will do everything in its power to deliver a deal, given the significant reputational dividend that success would bring for Ireland within the EU?

I think it is doable but it is extremely ambitious. For the Council of the European Union to reach an agreement at a relatively early stage, in other words, by the end of this year, provides a degree of certainty in a world that is craving certainty. There is a real premium on trying to reach agreement because there is so much uncertainty in the world right now. It is not inevitable that that will happen. The Deputy is right that the process is tedious in its various parts. It ultimately becomes a matter for the President of the European Council, President Costa, to seek that consensus or agreement among European member states. The Taoiseach, who is very experienced in his area, will represent our country at that, and I know it will be a priority for him as well. Ireland certainly will not be found wanting. Obviously, there are elections in different member states, and although I will not comment on them, they will have an effect. There has been a change of government in some member states, or there is due to be very shortly. We have outlined our own priorities. As a significant net contributor to the EU budget, as the Deputy pointed out, but which is often forgotten by others, it is right and proper that our voice is heard. We have outlined the areas that we want to see a real focus on.