Minister Donohoe launches public consultation on the future of the European Union’s Cohesion Policy

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe today (22 January 2024) launched Ireland’s public consultation on the future of the European Union’s Cohesion Policy.

Cohesion Policy constitutes the main investment policy of the EU, and is due to account for around a third of its budget, or €392 billion over the period of 2021-2027. The Policy is designed to contribute to strengthening economic, social and territorial cohesion in the European Union. It aims to correct imbalances between countries and regions. It delivers on the Union's political priorities, especially the green and digital transition.

The consultation forms part of a wider process which is being facilitated by the Department of Public Expenditure, National Development Plan Delivery and Reform in advance of negotiations on the post-2027 Cohesion Policy Legislative Package expected to be presented in mid-2025. This public consultation will be followed by a National Forum meeting later in the year. The combined results will contribute directly to Ireland’s position on this key EU policy, post 2027.

Commenting on the public consultation, Minister Donohoe said:

European Reflection Process on Cohesion Policy

In 2023, to feed into the reflection process on cohesion policy, post-27, the European Commission set up a group of high-level specialists on the future of cohesion policy, tasked to provide recommendations on how cohesion policy could address future challenges and support a fair digital and green transition, promoting regional prosperity and convergence.

The groups work included hearings with experts, academics and other stakeholders. The conclusions and recommendations of this group will be reflected in final summary report which will feed into the future work and direction of cohesion policy. Alongside this process Commissioner Ferreira wrote to each Member State, proposing that policy dialogues be held in each MS involving national and regional authorities along with partners and citizens.

EU Cohesion Funding

Cohesion policy is the European Union's strategy to promote and support the ‘overall harmonious development’ of its Member States and regions by strengthening economic, social and territorial cohesion through measures aimed at reducing disparities in the level of development between regions.

The Common Provisions Regulation (Regulation 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions) govern 8 EU Funds:

1. European Regional Development Fund

2. European Social Fund Plus

3. European Maritime, Fisheries and Aquaculture Fund (EMAFF)

4. Just Transition Fund (JTF)

5. Cohesion Fund

6. Asylum and Migration and Integration Fund (AMIF)

7. The Internal Security Fund (ISF)

8. The Border Management and Visa Instrument (BMVI)

As Ireland is not part of Schengen, the BMVI instrument does not apply.

Ireland will benefit from €1.4 billion in Cohesion Policy funding from the European Union for the 2021 to 2027 period. The details of the strategy are laid out in the Partnership Agreement. When this funding is co-financed at a national level, it will mean Cohesion Policy programmes add a total value of almost €3.5 billion to the economy and wider society.

The Cohesion Policy programmes covered by the Partnership Agreement are:

• the European Regional Development Fund; help strengthen regional innovation systems. Funds will also assist those at risk of energy poverty by investing in energy efficiency in houses. ERDF will also contribute to improvements in the appearance and liveability of medium sized and smaller towns across Ireland
• the European Social Fund+; contribute to reducing the risk of poverty and social exclusion, with an emphasis of disadvantages groups. Funding will also improve the chances of people to get a job by providing training to up-skill and reskill, lifelong learning, and education measures with a focus on those who face greater challenges in accessing the labour market
• the EU Just Transition Fund; support Ireland’s Midlands region addressing the impact of the transition out of peat for electricity generation
• the European Maritime Fisheries and Aquaculture Fund; support the implementation of the Common Fisheries Policy, the growth of a sustainable blue economy and healthy, safe and sustainably management of seas and oceans

Additionally, investment will be made through the European cross-border co-operation programmes for joint development in the Northern Periphery and Atlantic areas and with Northwest Europe and the PEACE Plus cooperation programme across the border counties of Ireland and Northern Ireland.

Partnership Agreement

The Department of Public Expenditure, National Development Plan Delivery and Reform has responsibility as ‘Member State’ for developing a Partnership Agreement (PA). The PA is the overarching strategic document, which lays out the strategy and investment priorities to be addressed via the Cohesion policy funds (ERDF, JTF and the ESF+), and the European Maritime Fisheries and Aquaculture Fund (EMFAF). It also sets out information in relation to the HOME funds (Asylum and Migration Fund (AMIF) and Internal Security Fund (ISF). Under the Common Provisions Regulations, which are the common rules covering the funds, no Operational Programme for individual Funds can be submitted until the Partnership Agreement is submitted to the Commission.

Ireland is set to receive a total of €1.4 billion (in current prices) in Cohesion Policy Funds, the European Maritime Fisheries and Aquaculture Fund for the 2021– 2027 period, comprising:

• €396 million for the European Regional Development Fund
• €508 million for the European Social Fund+
• €84.5 million under the EU Just Transtion Fund
• €142 million for the European Maritime Fisheries and Aquaculture Fund

Additionally, €293 million is allocated to European cross-border co-operation programmes for joint development in the Northern Periphery and Atlantic areas and with Northwest Europe and the PEACE Plus cooperation programme across the border counties of Ireland and Northern Ireland.

When the requirement for match funding is included the full value of the programmes supported by these allocations amounts to almost €3.5 billion. In addition, smaller amounts of funding are available for the Asylum, Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF).

Within Ireland the Minister for Public Expenditure and Reform has overall responsibility for EU Cohesion Policy and primary responsibility for the ERDF.

The Minister for Further Higher Education Research, Innovation, and Science has primary responsibility for the ESF+. The Minister for Agriculture, Food & the Marine has responsibility for the EMFAF and the Minister for Environment, Climate and Communications is responsible for the JTF. The Minister of Children, Equality, Disability, Integration and Youth is responsible for the AMIF and the Minister of Justice and Equality is responsible for the Internal Security Fund (ISF).