Ó An Roinn Caiteachais Phoiblí, Seachadta ar an bPlean Forbartha Náisiúnta, agus Athchóirithe
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The Minister for Public Expenditure and Reform, Michael McGrath TD, attended the EU General Affairs Council (Cohesion) meeting in Brussels today, Thursday, 18th of November.
This meeting was convened under the Slovenian Presidency of the Council of the EU to discuss the adoption of the inclusion of the Republic of San Marino to the EU Strategy for the Adriatic-Ionian Region, and to inform a policy debate on ‘the contribution of cohesion policy programmes to recovery, competitive sustainability, green and digital transition, resilience and economic, social and territorial cohesion - challenges and opportunities in the coming years’.
Ireland will receive a total of €1,282.5 million (in current prices) in Cohesion Policy Funds for the 2021– 2027 period, comprising of:
When the requirement for national match funding is included the full value of the programmes supported by these allocations amounts to almost €3.5 billion. In addition, the European Maritime Fisheries and Aquaculture Fund (EMFAF) will receive €142 million with smaller amounts available for the Asylum, Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF).
While NextGenerationEU funds including the Recovery and Resilience Facility (RRF) and the Brexit Adjustment Reserve (BAR) are not Cohesion Policy Funds and do not fall under this Council formation, they are also under the responsibility of the Minister for Public Expenditure and Reform. They form an important part of the overall EU package of support to Member States as they programme EU funding to repair damage caused by the pandemic and undertake investments to improve overall resilience, meet green and digital challenges, and support sustainable economic growth.
Speaking at the meeting the Minister said:
“Cohesion Policy is an important economic tool in its own right, to improve administrative capacity, to address disparities between regions, to stimulate research and innovation, to improve connectivity, and to enrich the lives of our European citizens, by addressing social inequalities.
"However, to be most effective Cohesion Policy must be strategically deployed. It must be part of an overarching longer-term strategy of mutually reinforcing Government policies, and complementary investments.
“We are at a key point in the programming cycle. We have a wide range of EU funds and instruments at our disposal to address the range of challenges we face. We need to ensure that all of these resources are effectively combined to make a positive contribution to economic, social and territorial development and convergence.
"This must be undertaken as part of a detailed economic plan reflecting local, regional and national needs with programming and implementation informed by meaningful stakeholder engagement, continuous review of performance and maximising synergies and complementarities. If we do this, Cohesion policy in coordination with other EU measures will continue to make a real difference.”
The Minister also took the opportunity to speak to the Commissioner for Cohesion and Reforms, Ms Elisa Ferreira about PEACE PLUS. He acknowledged the Commission’s deep commitment to the North South Programmes and to supporting North South cooperation under the Good Friday Agreement, evidenced by the EU’s support for PEACE PLUS.
The draft PEACE PLUS programme was approved by the Irish Government, the Northern Ireland Executive and the North South Ministerial Council in October, and will be formally submitted to the Commission shortly, with rollout expected to begin in 2022.
ENDS
Notes to Editors
EU COHESION POLICY
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.
Together they represent a third of the EU Budget. Each Fund also has its own specific Regulations and together they form the regulatory basis for the period of the current Multiannual Financial Framework (MFF), 2021-2027.
For the 2021-2027 period the overall MFF totals €1 134 583 million (in commitments, 2018 prices). Slightly less than a third of the sum (€330 642 million) has been ring-fenced under a sub-ceiling ‘Economic, social and territorial cohesion’ – i.e. Cohesion Policy.
Within Ireland, the Minister for Public Expenditure and Reform has overall responsibility for Cohesion Policy and specific responsibility for the ERDF, including PEACE PLUS
He is also responsible for other EU non Cohesion Policy Funds - the Recovery and Resilience Fund and the Brexit Adjustment Reserve.
IRELAND’S COHESION POLICY FUNDS ALLOCATION 2021-2027
The Cohesion Policy Funds will be used in all areas of the country to support a range of initiatives to ensure that Ireland is well placed to take advantage of the opportunities arising from a green and digital Europe including:
PEACE PLUS
The programme budget for PEACE PLUS is set to be €1.1445billion, based on commitments from the EU and the UK, and will be underpinned by a formal Financing Agreement which is currently being drafted by the EU, UK and Ireland. Programme funding reflects the Withdrawal Agreement commitment that the EU and UK will fund PEACE PLUS using the same funding proportions as for the current PEACE and INTERREG programmes.
A draft programme has been developed by the Special EU Programmes Body (SEUPB) in accordance with EU Regulatory requirements, and is structured around six investment areas:
The draft programme was approved by Government on 7 October 2021, by the Northern Ireland Executive on 13 October 2021 and by the North South Ministerial Council on 14 October 2021.
THE RECOVERY AND RESILIENCE FACILITY
The Recovery and Resilience Facility (RRF) is the largest component of NextGenerationEU, making more than €700 billion available to Member States in the form of grants and loans, with Ireland in line to receive almost €1 billion in grants over the lifetime of the Facility.
In order to access this funding, Ireland has developed the National Recovery and Resilience Plan for approval by the European Union. The Plan, which has a total value of €990 million, sets out the reforms and investments to be supported by the Facility.
The overall objective of Ireland’s Plan is to contribute to a sustainable, equitable, green and digital recovery, in a manner that complements and supports the Government’s broader recovery effort.
Ireland’s Plan is based on sixteen investment projects and nine reform measures covering the following priorities:
BREXIT ADJUSTMENT RESERVE
The aim of the BAR is to provide financial support to the most affected Member States, regions and sectors to deal with the adverse consequences of Brexit.
It has a total value of €5 billion in 2018 prices (or €5.47 billion in current prices).
Ireland’s allocation is €1.065 billion in 2018 prices (equivalent to €1.165 billion in current prices), representing just over 20% of the total Reserve, or the largest allocation for any Member State. The bulk of Ireland’s allocation will come in the form of pre-financing, Ireland will receive approximately €361.6 million for 2021, €276.6 million in 2022 and €282.2 million for 2023. The remaining funding tranche will be payable in 2025, but only when the Commission has approved the measures financed by the pre-financing. A minimum amount is ring-fenced for fisheries. In Ireland’s case that amounts to €56 million (although that amount may be exceeded at the discretion of the Government).