Paschal Donohoe (Dublin Central, Fine Gael)
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To reference countries’ regions for statistical purposes, the EU has developed a classification known as NUTS (Nomenclature of territorial units for statistics). NUTS divides each EU Member State into 3 levels:

• NUTS 1: major socio-economic regions
• NUTS 2: basic regions (for regional policies)
• NUTS 3: small regions (for specific diagnoses)

The Irish NUTS 3 regions comprise the eight Regional Authorities established under the Local Government Act, 1991 (Regional Authorities) (Establishment) Order, 1993.

Across the EU, the European Commission classifies regions within the Union as either being a “Less Developed Region”, a "Region in Transition” or a “More Developed Region”, based on their GDP per head of population relative to the EU27 Average. The Northern and Western Region is classified as a “Region in Transition” on the basis that its GDP is between 75%-100% of the EU27 average. The other two regions in Ireland, the Southern region and the Eastern and Midlands region, are classified as "More Developed" as their GDP is above 100% of the EU average. Under the Cohesion Policy rules set out in the Common Provision Regulation (CPR), regions classified as "Regions in Transition" like the Northern and Western benefit from a higher co-financing rate, where the EU provides 60% of the funding for programmes, whilst More Developed regions get a co-financing rate of 40%. In addition, under these rules, "Regions in Transition" have slightly more flexibility available in terms of the range of areas they can support in their programmes than "More Developed Regions".

I have responsibility for the European Regional Development Fund (ERDF) and NUTs classification has an important role in determining ERDF allocation. ERDF allocated to each Member State is based on the amounts calculated for each of its individual regions by the Commission using averaged Eurostat data from relevant reference years (2015 to 2017 for the 2021-2027 funding period). While the weightings and amounts used in the calculations vary according to the category of region, the allocations for transition regions and more developed regions are established by taking account of each individual regions:

a) Population;

b) relative GDP per capita;

c) level of unemployment;

d) level of youth unemployment;

e) level of education attainment;

f) level of greenhouse gas emissions;

g) level of net migration from outside the EU; and additionally in the case of more developed regions

h) population density.

Based on the calculations undertaken by the Commission, Ireland was allocated a total of €395,716,021 in ERDF funding. The formal notification of this allocation from the Commission was based on category of region only – details at NUTS 2 or 3 level were not provided. From this allocation, the total for "Regions in Transition" (i.e. the Northern and Western region – Ireland’s only region in transition) was allocated €110,238,539 and the total allocation for Ireland’s “More Developed regions” (i.e. the Southern and the Eastern and Midland regions) was €285,477,482.

In recognition of the "Region in Transition" status of the Northern and Western region, I made a decision, in consultation with the Regional Assemblies, to transfer €20m in ERDF resources from the two "More Developed" regions to the Northern and Western region. My Department in conjunction with the Regional Assemblies, engaged with the Commission on this matter and secured their agreement on this use of ERDF funds. This increased the allocation in the Northern and Western region to €130,238,539.

As Minister for Public Expenditure, NDP Delivery and Reform I do not have a role in the revisions to NUTS2 and NUTS3 regions. Any queries in relation to this matter should be referred to my colleague, the Minister for Housing, Local Government and Heritage.