The European Union’s next long-term budget, the draft Multiannual Financial Framework (MFF) 2028-2034, was presented on Wednesday, 16 July. For Ireland, the European Commission’s draft for the 2028-2034 MFF includes two areas of critical national interest and potential contention: the future of agricultural funding and the introduction of a new EU-wide corporate tax.
Concerns over CAP reforms
One of the most notable changes in von Der Leyen’s proposal is the consolidation of the two largest budget envelopes, CAP and Cohesion Funds, into a single funding framework, the National and Regional Partnership Fund. This new fund will also provide funding for migration and infrastructure.
Crucially, this means that CAP would no longer function as a standalone fund within the EU budget. This restructuring raises concerns that agriculture funding may no longer be ringfenced, potentially allowing resources to be diverted into other sectors. For Ireland, where €2 billion in CAP funding is distributed annually to around 120,000 farmers, the implications are profound. The proposed changes have triggered strong warnings from Irish farming organisations and political leaders. IFA President Francie Gorman has cautioned that a dramatic cut to CAP funding would “reduce food production and lead to a food price inflation.”
The Corporate Tax red flag
A second area of contention for Ireland is the proposed Corporate Resource for Europe (CORE), an EU-wide levy targeting both EU-based and foreign companies with annual turnover exceeding €100 million (up from an earlier proposal targeting those over €50 million). The levy, applied on a sliding scale, is expected to generate up to €6.8 billion annually.
Given the fiscal constraints facing the EU’s largest economies, many of which are grappling with high national deficits, there is limited appetite for increasing national contributions to the EU budget. The CORE levy is one of the several proposed new revenue streams intended to reduce the EU’s reliance on direct national contributions while enhancing its ability to invest in emerging priorities.
However, for Ireland, the proposal raises red flags. The government has already signalled its opposition, having previously rejected similar attempts to introduce corporate tax-based contributions to the EU budget. Other EU member states that similarly rely heavily on corporate tax revenues, such as Luxembourg and Sweden, are also expected to oppose the measure.
What comes next: Ireland’s leadership role
This marks the beginning of a complex, two-year negotiation process involving the European Parliament, the Council of Ministers, and the European Commission. Crucially, Ireland will assume the rotating Presidency of the EU Council in the second half of 2026, placing it in a pivotal leadership position at a critical stage of the talks. This role will require Ireland to steer negotiations, build consensus among member states, and use its diplomatic influence to shape the outcome, presenting both a significant responsibility and a strategic opportunity.
