THE EU: The European Commission has proposed a phasing out of cohesion funds to western European regions after EU enlargement, so that Ireland's poorest regions could continue to receive EU funds after 2006. Denis Staunton reports from Brussels
The Regional Policy Commissioner, Mr Michel Barnier, said that poorer parts of the present EU should receive reduced subsidies for seven years after the 10 mostly poorer, new countries join.
European regions where GDP is less than 75 per cent of the EU average qualify for cohesion funding. After enlargement, however, the EU's average GDP is expected to fall by about 12 per cent, lifting many western European regions above the limit for funding.
Mr Barnier said such regions should be protected against this "statistical effect" by seeing subsidies phased out rather than cut off abruptly.
The Government believes however that the Commission's proposal could mean that the Border, Midland and Western region and the Southern and Eastern region could continue to receive some EU funding.