Ireland must contribute an extra #16 million (£20.3 million) to the EU this year, even though the EU has recorded a budget surplus of more than #11 billion.

Every other member-state will receive a rebate on last year's budget contribution but, because Ireland's economic growth last year exceeded expectations, its contribution has been recalculated upwards.

Announcing the budget surplus, the EU Budget Commissioner, Ms Michaela Schreyer, explained that most of the savings were due to structural funds that were allocated but not used.

The 2001 budget already anticipated a surplus of #1.6 billion from last year and more than #2 billion will be used to make up for a shortfall in Britain's budget rebate between 1997 and 2000. A further #350 million has been set aside for assistance to the former Yugoslavia and its neighbours.

Most of the remaining surplus is being returned to the member-states, more or less in accordance with its contributions.

"Such a surplus is exceptional. It reduces the EU resources paid by member-states in 2001 from #90.97 billion to #81.3 billion. I think that this is quite good news for the member-states," Ms Schreyer said.

The EU will return more than #4.5 billion to Britain, #2.2 billion to Germany and almost #1 billion to France.

The EU calculates how much each member-state should contribute to the budget on the basis of VAT revenues and GNP. Officials said last night that the Commission underestimated Ireland's economic growth when it calculated last year's contribution. As a result, the State must pay more this year.

Officials claimed that, if the EU's budget surplus had not been so great, Ireland would have been obliged to repay a larger sum.

The news came as EU member-states agreed to a compromise over the free movement of labour following the accession of new member-states. The agreement was made possible when Spain lifted its objections to the deal, after it received assurances that other member-states would consider Madrid's request to continue receiving EU economic aid for its poorer regions after enlargement.

Under the agreement, there will be an initial two-year ban on the free movement of workers from new member-states to existing ones, after which individual member-states could exclude workers from new members for two more years.

In some cases, the bans could be extended for a further three years, bringing the maximum delay to seven years.

Politicians from the candidate countries complain that the delay on free movement of labour will give their citizens a second-class status within the EU.