Negotiating the next Multiannual Financial Framework is both a challenge and an opportunity for the Irish presidency of the Council of the European Union.
The MFF is important both nationally and at the European level, and many see the negotiations as a pivotal moment for the future direction of the EU.
An agreement between the EU institutions should be reached by the end of the year, coinciding with the conclusion of Ireland's six-month presidency.
The frugal member states oppose a larger budget, while others argue that additional resources are essential to meet the EU's ambitions. Ireland and, ultimately, Taoiseach Micheál Martin will have to help bridge that divide.
This article is part of The Parliament's "Guide to Ireland's Presidency of the Council of the EU."
Ireland as net contributor
For the first time, Ireland is a net contributor to the EU's budget. In 2024, it paid around €800 million more into the budget than it received. Not among the largest contributors, but no longer a beneficiary. That shift gives Dublin a greater appreciation of the perspective of member states that have long been among the principal funders.
Ireland has benefited enormously from EU investment. Roads, rail projects, universities, community initiatives and cross-border programs across the country bear the familiar “Funded by the European Union” sign.
This experience presents an opportunity for the Irish presidency. Having been both a major beneficiary and now a net contributor, Ireland is well placed to balance the long-term value of investment in the European project with the domestic pressures facing member states asked to contribute more.
A deal on the next long-term budget will be done. It must be done. But only an agreement that can command support across all 27 member states, with their different priorities and budgetary pressures, will endure. Ireland's transition from beneficiary to contributor places it well to serve as an honest broker.
In search of unanimity
The MFF requires unanimity in the European Council. A deal that fails to deliver for every member state is unlikely to see the light of day.
Irish Taoiseach and Fianna Fáil leader Martin is a committed European who has held some of the country's most senior offices. As a former minister for foreign affairs, he will seek to bridge the differences between member states and build support for a compromise.
The Irish Permanent Representation has spent the past 18 months preparing for the presidency and building the capacity needed to manage a demanding legislative agenda, particularly the MFF negotiations.
Will the agreement on the long-term budget resemble the European Commission's original proposal, or even the version the Cypriot presidency was preparing? I do not believe so. Much remains uncertain.
The assumptions underpinning the current proposals are unconvincing to me and many colleagues in Parliament. The proposed MFF allocates €149 billion to NextGenerationEU debt repayments, reducing the resources available for current and future policy priorities.
The current proposals do not adequately account for the costs associated with the potential accession of Montenegro and North Macedonia in the near term.
The potential accession of Ukraine toward the end of the proposed 2028-2034 budget period is also insufficiently reflected in the current proposals. This would have significant financial implications across the EU, particularly for the Common Agricultural Policy and Cohesion Policy.
However, national leaders have yet to fully reveal their negotiating positions. The leaders of the frugals could accept higher spending and additional own resources, as other countries are likely to seek greater funding for security and defense, the CAP and cohesion.
Reaching agreement on the next budget will require political realism, compromise and a willingness to look beyond national interests. That is the challenge facing the Irish presidency.
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