Reaction to Agenda 2000 has been mixed, with Irish MEPs and lobby groups concerned about the impact that the proposed cuts in structural and other funds would have on Irish economic development.
The compensation to farmers for proposed cuts in compensation arising from Agenda 2000 is based on a "best-case scenario" for the market, according to Mr Michael Berkery, secretary general of the IFA.
"Are we sure the next four years are going to produce a best-case scenario?" he asked.
The cuts, arising from further CAP reform, are part of the overall plan for the development of the EU over the next decade, including its enlargement to take in the former communist bloc countries of eastern Europe and Cyprus.
One third of the cost of bringing these countries to a level which would allow them to participate will come from cuts in existing EU programmes, with two-thirds coming from expected growth. The IFA fears that income payments to farmers will not fully meet the expected fall in their prices as a result of the reforms.
However, the employers' organisation, IBEC, welcomed the proposals in Agenda 2000, in particular the decision to open up enlargment negotiations, the recognition that EU transfers to Ireland would not be cut off abruptly and the proposed simplification of the structural funds.
IBEC's European director, Mr Peter Brennan, said the Commission's proposals provided a backdrop for the Government to set out its long-term strategic ambitions for the Irish economy. The first priority was to determine Ireland's productive investment needs for the next decade.
"A gradual reduction in EU funds will also have, over time, serious implications for State support schemes that currently assist the enterprise sector," he said. "IBEC believes that it is also inevitable in the future that private investment will have to complement public expenditure in certain areas," he added.
The leader of the Fianna Fail group in the European Parliament, Mr Gerry Collins, described the proposal to freeze the size of the EU budget at 1.27 per cent of GDP as "a retrograde step".
"The Structural Funds should be maintained at their present size for the 15 member-states until the objective of creating a level playing field throughout the Union has been achieved," he said.
He called for a review of the existing qualification for structural funds, of 75 per cent of the average European per capita GDP, to take account of other factors like unemployment and peripherality. Ireland has well passed the 75 per cent ceiling. He also called on the Commission to carry out an assessment of individual regions, so that those who had not achieved the 75 per cent of the EU average would not be linked to neighbouring regions which had.
He gave the example of the east coast of Ireland, whose growth had not been matched in other parts of the State.
Fine Gael MEP Mr John Cushnahan described the presentation of Agenda 2000 as "a historic day" which would be positive for the EU and for Ireland. "There have been some dissident and specific voices raised in Ireland against enlargement to the east because of the perceived but nonetheless unjustified fear it will result in less Structural Funds for Ireland," he said.
"It is the success of the Celtic Tiger economy and not enlargement which will result in less EU Structural Funds in the future. Structural Funds have played a significant part in helping us achieve the pinnacle of our present success. For this reason we should be sympathetic to countries who need our support and assistance.
"Further, by helping these fledging economies, we honour the European ideal because we contribute to the peace and stability of Europe."
Labour MEP Ms Bernie Malone also welcomed the proposals and especially the fact that there would be another Intergovernmental Conference before enlargement. She said Ireland would still be eligible for Structural Funds for the next few years and would continue to receive support for education and training. "It's not all doom and gloom," she said.
Mr Pat Cox MEP (Ind), said it was important to distinguish between changes which would result from enlargement and those which resulted from Ireland's economic growth. "The decision to wind down rather than crash these funds is positive," he said.