Minister McGrath launches investment of €853 million in Ireland's European Regional Development (EDRF) Programmes

Today Tuesday 29th November 2022, the Minister for Public Expenditure and Reform, Michael McGrath T.D. together with the Southern Regional Assembly, Northern and Western Regional Assembly and the Eastern and Midlands Regional Assembly, launched Ireland’s two ERDF Programmes for the period 2021 – 2027. Following lengthy negotiations, the EU Commission adopted the two ERDF Programmes on the 18th of November 2022.

The two ERDF Programmes set out Ireland’s investment strategy for €853 million, of which €396 million is financed by the EU. The ERDF supports Irish regions in promoting economic, social and territorial cohesion in line with key EU priorities.

The programmes will focus on three strategic outcomes:

• developing smarter more competitive regions through measures like building Research, Development and Innovation (RD&I) capacity in public research institutions and by strengthening regional innovation systems in line with Ireland's Smart Specialisation Strategy and the Regional Enterprise Plans.
• supporting actions to scale up energy efficiency measures for those in energy poverty; and
• supporting the sustainable regeneration of towns and urban centres using a Town Centres First Framework.

The programme covering the area north west of the country is to be managed by the Northern and Western Regional Assembly (NWRA) and the programme covering the midlands, south and east of the country is to be managed by the Southern Regional Assembly (SRA), with significant collaboration from the Eastern and Midlands Regional Assembly (EMRA).

Commenting on the adoption of the ERDF Programmes, Minister McGrath said:

Notes for Editors

EU Cohesion Funding

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

2. European Social Fund Plus (ESF+)

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.

Partnership Agreement

The Department of Public Expenditure and Reform has responsibility as ‘Member State’ for developing a Partnership Agreement (PA). Minister McGrath launched the Partnership Agreement with Commissioner for Regional Affairs Elisa Ferreira on 16 September.

The adoption of the Partnership Agreement enables Ireland to access the Cohesion Policy Funding for the programmes covered by the Partnership Agreement. Ireland will receive a total of €1.4 billion (in current prices) in Cohesion Policy Funds. 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).

ERDF Programmes

Ireland’s ERDF allocation for the 2021 – 2027 period amounts to circa €396 million, and with national co-financing the total ERDF programmes will amount to over €853 million over the period. The focus of the Funds is shaped by the Common Provision Regulations, which provides that the Funds as a whole shall support the following broad Policy Objectives:

1. A smarter Europe – innovative and smart economic transformation. ERDF investment under this objective are informed by the development of DETE’s recently published Smart Specialisation Strategy for Innovation 2022-2027 (S3) and the Regional Enterprise Plans. S3 is an essential requirement for drawdown of ERDF funds under this policy objective

2. A greener, low-carbon Europe – by promoting clean and fair energy transition

3. A more connected Europe – mobility and regional ICT connectivity

4. A more social Europe – implementing the European Pillar of Social Rights

5. Europe closer to citizens – sustainable and integrated development of urban, rural and coastal areas through local initiatives

A ministerial decision on Item was unpublished or removed programming period. From an administrative and planning point of view, Ireland is divided in to three regions: the Northern and Western, Southern, and Eastern and Midland Regional Assembly areas. The European Commission classifies regions within the EU as either being a “Less Developed Region”, (up to 74% of EU 27 Average), a “Transition Region” (75%-100% of EU27 Average), or a “More Developed Region”, (over 100% of the EU average) based on their GDP per head of population relative to the EU27 Average. For this programming period the Northern and Western region has changed from a “More Developed Region” to a “Transition Region”. Both the Southern and Eastern and Midland Regional Assembly areas are classed as “More Developed Regions”.

Reflecting the two different EU classifications of the development status of different regions in Ireland, there are two ERDF programmes. The programme covering the area designated as ‘Region in Transition’, is to be managed by the Northern and Western Regional Assembly (NWRA) and the programme for the two regions designated as ‘More Developed’, is to be managed by the Southern Regional Assembly (SRA), with significant collaboration from the Eastern and Midlands Regional Assembly (EMRA).

Managing Authority Function

The Managing Authority is responsible for managing the Programmes they provide information on the programme, assist in the selection of eligible projects and monitor implementation. The functions of the MA are set out under the Common Provisions Regulation (CPR) and include:

• selection of operations/projects
• carry out programme management such as management verifications, forecasts of payment applications and so on
• support the work of the monitoring committee
• supervise intermediate bodies
• record and store electronically, data on each operation for monitoring, evaluation, financial management, verifications and audits
• communications activities in relation to the programmes

ENDS