From Department of Public Expenditure, NDP Delivery and Reform
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The Minister for Public Expenditure and Reform, Michael McGrath, has today (27 July 2022) secured government approval for Ireland’s 2 draft ERDF Programmes for the period 2021 – 2027. The 2 ERDF Programmes set out Ireland’s investment strategy for a fund totalling €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. A ministerial decision on 22 October 2020 appointed the Regional Assemblies to act as Managing Authorities for the ERDF Programmes for the 2021 – 2027 programming period.
Following approval by the government, the draft ERDF Programmes will now be formally submitted to the EU Commission for its review and final negotiations. Commission approval and adoption of the Programmes is anticipated before the end of the year.
The Regional programmes will focus investment on the following key strategic outcomes:
1. Developing Smarter More Competitive Regions by building RD&I capacity within the public research institutions in our regions, by accelerating the translation of cutting-edge research into commercial applications at a regional level, by supporting innovation diffusion and by strengthening regional innovation ecosystems in line with Ireland's Smart Specialisation Strategy and the Regional Enterprise Plans.
2. Creating Greener More Energy Efficient Regions and a Just Transition by focusing on scaling up investment in actions that improve the energy efficiency of residential homes while targeting homeowners in, or at risk of, energy poverty.
3. Supporting Sustainable Urban Development in our Regions by taking an integrated strategic approach to the regeneration of our towns using a Town Centres First Framework.
Commenting on the agreement of the ERDF Programmes, Minister McGrath said:
"The approval of the ERDF Programmes by Government is a key milestone in securing €396 million in EU funding. When national match funding is included, it will allow for ERDF investment of €853 million in Ireland’s regions out to 2027. I look forward to finalising negotiations with the European Commission on the ERDF Programmes over the coming months.
"For this new programming period, our ERDF programmes will contribute to 3 strategic outcomes. The first is the focus on developing smarter more competitive regions through measures like building RD&I capacity in public research institutions and by strengthening regional innovation. Second, it will also support actions to scale up energy efficiency measures for those in energy poverty. Finally, it will support the sustainable regeneration of towns and urban centres throughout the country.”
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.
The Department of Public Expenditure and Reform has responsibility as ‘Member State’ for developing a Partnership Agreement (PA). Minister McGrath announced on 14 July that he had secured cabinet approval for Ireland's PA.
The approval of the Partnership Agreement is a requirement to access the Cohesion Policy Funding for the programmes covered by the Partnership Agreement. Ireland will receive a total of €1.1 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 €2.4 billion. In addition, smaller amounts of funding are available for the Asylum, Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF).
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:
* 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.
A ministerial decision on 22 October 2020 appointed the Regional Assemblies to act as Managing Authorities for the ERDF Programmes for the 2021 – 2027 programming period. From an administrative and planning point of view, Ireland is divided into 3 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 & 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 2 different EU classifications of the development status of different regions in Ireland, there are 2 ERDF programmes. The programme covering the area designated as ‘Region in Transition’, is to be managed by the Northern Western Regional Assembly (NWRA) and the programme for the 2 regions designated as ‘More Developed’, is to be managed by the Southern Regional Assembly (SRA), with significant collaboration from the Eastern Midlands Regional Assembly (EMRA).
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: