Ireland to join French resistance on Cap funding

EU: Ireland will today insist "a deal's a deal", writes Mark Brennock , Chief Political Correspondent

EU: Ireland will today insist "a deal's a deal", writes Mark Brennock, Chief Political Correspondent

The Taoiseach and Minister for Foreign Affairs will today join French resistance to cuts in promised agricultural funding for the current 25 EU states.

Today's EU summit negotiations on the union's future budget will see pressure from Britain, Italy and other EU countries to spread the agreed sum for farm subsidies for the 25 to include the next countries due to join the union: Bulgaria and Romania.

The Nice Summit in 2002 agreed that €293 billion would be spent on the Common Agricultural Policy (Cap) in the 2007 - 2013 period.

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France, Ireland and others say it was clear that this was to cover the needs of the 25 states who are members since the most recent enlargement.

However Britain is leading those arguing that the funding that would be needed for Bulgarian and Romanian farmers - presume they join the union on January 1st, 2007 - should be taken from this €293 billion. It is estimated this would take some €8 billion from the total.

Britain and other states which do not benefit heavily from Cap say the current deal is overly generous. Some also say that they were not fully aware at the time of the all-night Nice negotiations that the sum agreed was only for the 25 current member states.

Minister for Foreign Affairs Dermot Ahern said last night that Ireland would have strong backing for its demand that the €293 billion agreed at Nice not be reduced to cater for new member states. "We have strong support for our position from France and other countries. If you make a deal, a deal is a deal."

The Government sees the negotiations on agricultural funding as the most important national interest element of the budget talks today. It has concerns about other elements, but Government sources said last night these would only become relevant if there was a serious attempt today to agree the EU "financial perspectives" or budget.

Last night there were suggestions in Brussels that the differences between some of the larger states on aspects of the budget were so great that the European Council might postpone detailed negotiations. Should the talks go ahead, the Government will also seek to maximise the cohesion funding available to Ireland's Border, Midlands and West region.

This region is to lose its Objective One status entitling it to maximum EU support. However it remains qualified to receive some funding to pay for measures to promote competitiveness and employment. The Government is to argue that the current budget proposals put forward by the Luxembourg EU presidency are not generous enough.

Bertie Ahern and Dermot Ahern will also join those seeking to restrict the British rebate under which the UK receives a repayment each year of some of the money it pays to fund the EU.

France and other states argue that Britain won this rebate when the Cap amounted to 70 per cent of EU spending, while it accounts for just 40 per cent now.

The Luxembourg EU Presidency has proposed that the total rebates given to all member states should not exceed €6 billion, but Ireland is among those arguing for a €5 billion figure.