Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform the long term funding implications of the change to the status of BMW regions in the February MMF agreement; and if he will make a statement on the matter. [12678/13]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

On 8 February 2013 the European Council reached agreement on the EU’s budget for 2014-2020. The budget has to be agreed with the European Parliament and discussions are now taking place with the Parliament under the aegis of the Irish Presidency.

Despite an increase in Ireland’s overall Structural Funds allocation from the €901 million we receive under the current round to €979 million in the 2014 – 2020 round, the allocation for the Border, Midland and Western (BMW) Region was reduced. This is because the region no longer qualified as a transition region since its GDP per capita exceeded 90% of the EU average in 2007 – 2009 - the period used to determine the status of regions across the EU for the purposes of the Multi-annual Financial Framework (MFF) 2014 – 2020. This meant that the status of the BMW Region has changed from that of a “transition region” to that of a “more developed region” relative to other regions throughout the EU 27 Member States.

The Government was concerned that this change in status was likely to lead to a reduction in the BMW Region’s allocation from Brussels. In recognition of the special position of the region, the Government, in the recent MFF negotiations in February, was successful in securing for the region an additional €100 million and additional special allocations under PEACE IV and the Youth Employment Initiative. The focus on youth unemployment is something the Irish Government had been pressing for.

Work in my Department, in conjunction with the Regional Assemblies, has already commenced on the preparation of a new Operational Programme 2014-2020 for the BMW region, which will be submitted to the European Commission for approval later this year.