Why Ireland will push for change in how EU recovery money is shared out

Smart Money: Inflated GDP data could cost Ireland under European Commission proposals

The European Commission has come up with a plan totalling €750 billion – how much of this will the Republic get? Photograph: iStock

The European Commission has come up with a plan totalling €750 billion – how much of this will the Republic get? Photograph: iStock

In the 1980s and 1990s the taoiseach of the day would return from Brussels talking about the billions we were going to get in funding. Now we are in the EU “rich” club and are a net contributor to the EU budget.This means our direct payout from the new EU recovery programme, if it is agreed, will be limited.

In fact our distorted GDP data – inflated by multinational accounting – has us getting less than other smaller, relatively well-off EU states out of the illustrative share-out featured in European Commission documents, thought these may change in negotiations. The low level of unemployment here is also featuring in the initial calculations as a factor indicating that Ireland’s share should be relatively low.

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