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Mattie McGrath Warns of CAP Cuts and EU Solidarity Failures

Mattie McGrath Warns of CAP Cuts and EU Solidarity Failures

Mattie McGrath spoke on 6 May 2020 about the European budget, the Common Agricultural Policy (CAP) and what he described as a lack of solidarity from larger EU members. He warned that proposed budget contributions and the rejection of COVID bonds would result in serious cuts to payments for Irish farmers and regional programmes.

EU budget and CAP funding


The deputy recalled the European Council discussions earlier in the year and the Taoiseach's stated position that Ireland was willing to contribute more to the EU budget over the next seven years. He said that position was rejected by other Council members and that, given the pandemic, there is now no possibility of increased contributions without cuts to existing supports.

Impact on farmers and regional programmes


He argued those budget decisions will mean cuts to CAP payments and to regional and social development programmes such as Interreg. He said the agricultural community, agribusiness and the whole sector face deep concerns about the scale of potential reductions.

Critique of past bailout and solidarity


Drawing on Ireland's earlier financial crisis, he described the previous bailout as a "clean-out" and accused wealthier European countries of showing "absolutely zero solidarity" at that time. He said that experience left lasting trauma and informed his scepticism about current EU responses, including the predominance of loans rather than grant aid.

German court judgment and COVID bonds


He asked the minister to assess the potential impact of a German court decision regarding the German central bank and criticised the rejection of proposed COVID bonds. He noted that planned supports would include large loan packages rather than grants and questioned the balance of power among EU members, citing comments about Angela Merkel and the central role of stronger countries.

Mattie McGrath — shot from statement: Mattie McGrath Warns of CAP Cuts and EU Solidarity Failures (06.05.2020)

Request for government assessment and response


He asked Minister McEntee to outline redoubled efforts to assess the implications of these EU developments and to report back on the likely consequences for farmers and regional programmes. He said the matter must be addressed in negotiations on the multi-annual financial framework and implied urgency given the pandemic and economic fallout.

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Transcript
I want to thank you for your briefing on the video conference that you had. I want to remind him, if he hadn't left, but I'm sure it'll be related to him, that I spoke here on 30th to 5th of March on a post-European Council and indeed there were very serious issues emerging at that stage. And that was before we had any real idea of how devastating and how serious the pandemic was going to be. And at that time, the Taoiseach has stated in the House here that he had set out Ireland's position on a long-established, well-functioning and successful policies, such as the Common Agricultural Policy, CAP, and had made it clear that the plans and those policies need to be continued to be properly funded. And that couldn't be more truer than it is now today. At the European Council meeting in February, the Taoiseach clearly outlined that Ireland was willing, this is very important, Ireland was willing to contribute more to the budget over the next seven years. I pointed at that time, the 5th of March, that this cannot be done. And we clearly know now that there's no possibility of doing that. It means that payments to Irish farmers and important regional and social development programmes, such as Interreg, will be cut, cut seriously. And this is quite obvious. We now know that despite the Taoiseach's efforts, the Council members at that stage on the 5th of March essentially rejected Ireland's position, leaving farmers and the agricultural community, and there's agribusiness and the whole sector here with very deep concerns regarding the cuts in the CAP funding, what it would mean. It was reported also, after that February meeting, that Chancellor Angela Merkel had said that the differences were still, in a quote, were still too great to reach an agreement. And we are not going to have to, we are going to have to return to the subject of the budget during the discussions on the multi-annual financial framework, which is meant to be an operation from next year. That was simply unacceptable at that stage. It's even more unacceptable now. So there's huge delays and huge issues. And I want to also ask, I can well remember when we hit our financial crisis, when the country went broke. And I remember phoning the late Minister Linehan that morning before he left, or the evening before he phoned me actually, it was the evening of my late mother's funeral. He was leaving Brussels, and I remember phoning him back to ask him not to accept the deal, because it wasn't a deal. It was a horrible, horrific treatment that we got at the hands of the wealthier, stronger countries in Europe. The ones that have shoveled and bulldozed the money in here, from their banks into our banks, and contributed hugely to our financial crash. But no, it was accepted. They threw us out and dangled us on a line, and didn't care about Ireland. And we were the goodbyes. We made penniless our families in the so-called bailout, which I described as a clean-out. And that's what it was. They allowed robbery, where we get money from the IMF for less than 3%, and they charged 6% for it at EU, or almost 6%, sorry, 5% at the European level. So I felt that time they showed absolutely zero solidarity with a country here on the periphery of Europe, who had been exemplary Europeans. And we still are trying to be exemplary Europeans, and I feel too much so a lot of the time. I want to ask you, maybe Deputy McEntee, and Minister McEntee, if you could have an outline, and I know it's the only date yet, the possible impact of that court decision, the German court, regarding the German central bank. I wonder why they weren't keeping an eye on it when they were shoveling money in here, and giving it to our banks, to give it to our people, to give it to anyone who wanted it, literally, and then forcing them to pay it back. And the trauma that has been visited on our society as a result of that banking crisis. We're now dealing with a far broader and deeper crisis, and we see the different efforts that funds over half a trillion, certainly. But I note they're going to be loans of support, so they're not going to be any grant aid. I note that the COVID bonds were rejected also. So I see the very same pattern developing by the stronger countries at the centre of Europe. I see the questions now, and reasons now, why the United Kingdom left Europe. Because of the lack of solidarity, and the bullying, quite frankly, and literally intimidation of smaller nations. And when our need is there, we're not getting the support. So I want to ask Minister McEntee, what redoubled efforts are you going to make to, and I hope you'll reply when you reply at the end, to, first of all, assessed impact of that judgment. And why is Ms Merkel and indeed the German community so much stronger than what, and wielding so much power? And when the group of eight got together, including Ireland, to discuss, looking for those, seeking those COVID bonds, we got no support, only for the eight, and it fell idly by. How many more situations? How serious is it going to have to be before the European project realises that there have to be a parity of esteem with monarch countries, and have to be meaningful supports for them? Thank you very much. Thank you. Thank you. Thank you. Thank you. Thank you.