Commissioner Danuta Hübner expects 'generosity' from the Republic after 32 years of receiving substantial benefits, writes Honor Mahony
The Republic is among those member states that face the biggest cuts in EU funding, according to the commissioner in charge of EU regional policy.
Speaking ahead of her meeting with the Government yesterday, Danuta Hübner said that, in the EU's next budget round - starting in 2007 - the Republic will "be among those who will suffer from the deepest cut of the funds - that's clear".
"One can, of course, say that it is because Ireland has become a rich and successful European state so the day comes when there will be less funds," said Hübner.
It is also due to the fact that there are simply more countries wanting to put their hands in the EU pot - enlargement last year brought 10 new member states where 92 per cent of the total population live in regions that qualify for EU funding.
However, Hübner refused to speculate on when the Republic would, for the first time in its 32-year membership of the bloc, start to pay more into EU coffers than it gets out.
"The day always comes but we don't do that kind of forecast," she said.
The Republic has done extremely well out of the European Union. In 2003, for example, it paid €1.12 billion into the EU but received €2.69 billion - a difference amounting to 1.4 per cent of gross domestic product (GDP). Between 1973 and 2002, this difference has amounted to €34 billion.
At the moment, the State is receiving around €4 billion in EU funds in the current financial period from 2000-2006.
Hübner said she expected that the amount of money that the Republic has received over the years would now be translated into generosity on the government's part when it comes to contributions to the next EU budget round, from 2007 to 2013.
"Ireland is an example of a society that knew how to use membership of the EU. I think that it is reasonable to expect from the Irish, from the politicians, that they now understand we have poorer regions and poorer countries that still need some time to become more prosperous.
"I would expect Ireland, being on the other bank of the river today, to understand the needs of others and also support the change in Europe, in the poorer regions and the poor countries," said the commissioner, who, as a Pole, comes from one of the new member states set to greatly benefit from EU largesse.
The question of the Republic's own largesse is set to feature in June when EU leaders are to thrash out the exact ceiling for the EU budget for the seven-year period.
The commission - and Hübner pressed the matter with the Government yesterday - wants member states to pay 1.14 per cent of gross national income (GNI) towards the EU.
This is strongly contested by a group of six member states - including Britain, France and Germany - who want to cap the budget at 1 per cent of GNI.
So far, the Government has played its cards close to its chest on the matter, saying only that it does not belong to the group of six and waiting to find out whether it will, in fact, become a net contributor to the EU from 2007.
"We need the Irish Government in our negotiations on the financial perspective [ the next budget round] and I would hope for a signal from the Government and also support," said Hübner.
But while expecting the Republic to be generous, the commissioner also indicated that the State would continue to receive some EU money.
She said that, although the State will no longer qualify for money under the so-called "Objective 1" criteria - where GDP in the region must be under 75 per cent of the EU average - "all the regions of Ireland will qualify for Objective 2 and Objective 3".
These criteria concern making a region competitive and measures taken to boost employment, and will comprise 22 per cent of the proposed €336 billion for regional policy - the rest of the money will go to Objective 1 regions.
The commissioner indicated that the State's regions should look into projects that "focus on investment, on technology and technology transfer", but added that it will be up to the Government to decide how the money is allocated.
Hübner said that there were no concrete figures on what Ireland would receive because the statistics were not yet in from all the member states. In addition, how much it will get will "depend on the final size of the [ EU] budget".
"This week, we will have all the final data from Eurostat to make the calculations but only the conclusions of the negotiations on the financial perspective will make it possible for us to complete the calculations on the allocations for the national envelopes."
Asked why the Republic should continue to get money when it is already so rich, Hübner said: "Because the cohesion policy is not only about money, it is also a certain philosophy."
She said that the small projects funded by EU money throughout Europe often brought people and regions together "and is very often the only visible proof that Brussels does exist".
Hübner also praised the Republic for the type of projects that have been funded and the way the money has been spent in the past.
"Ireland is a sort of role model: a member state that managed to use the membership of the European Union - for growth, for job creation, for competitiveness - in a way which is admired by everybody and probably envied by some.
"Even though Ireland is graduating from the funds, we need it as a source of best practice of lessons learnt for those who are now poor in the European Union".
