EU: The European Commissioner for Regional Policy, Mr Michel Barnier, is facing opposition from German and British politicians to his plans to continue aid for poor and developing countries, which would include Ireland, after the current round of funding runs out in 2007.
Speaking in Portlaoise last night, Mr Barnier said some strong opinion among current EU members had suggested that when the next round of regional aid begins in 2007, it should be restricted to "Objective One-type" regions, a move which would deprive Ireland of this funding.
However, the Commissioner, who will this morning open negotiations on funding with regional affairs ministers from EU members and aspirant states, said he intended to propose a "special situation for newly emerged and fragile regions".
This would allow the Republic to continue to achieve grants of up to 75 per cent of project cost in 2007, and on a sliding scale, from 2007, down to 15 per cent in 2013.
Some current EU members have suggested, because of budgetary concerns, that when a region emerges from Objective One status it should no longer be funded by regional grants.
Mr Barnier will also be negotiating with regional affairs ministers from the aspirant states, who will want to see the greatest amount of regional funding going to Eastern Europe.
Mr Barnier told The Irish Times that the logic behind this argument was that the new EU countries would account for one-third of the enlarged union's population and one-third of the land mass, but just 5 per cent of its Gross National Product (GNP).
It was vital and in the interests of the whole Union that these regions were made economically competitive as quickly as possible.
But Mr Barnier said he accepted that there were "fragile and delicate" regions - such as Ireland's Border, Midlands and Western (BMW) region - which he agreed would need ongoing support.
The Commissioner said that under his proposals, funding in future would be a mix of social and regional development grants and would be applied to improve accessibility, rural technological access, and environmental risk prevention. A sub-programme, Urban Plus, would be an extension of the current urban programme.
Mr Barnier also revealed that the EU was planning to cap funding to new member-states at 5 per cent of GDP, which would make it difficult for the entire budget to go to these countries.
There would also be a much greater emphasis on regions accessing their own grant aid, "without bureaucratic interference from Brussels. Grants will be approved by the regional authorities themselves," he explained.
Nevertheless, the Commissioner will this morning propose measures which would, in 2007, provide for the transfer of 78 per cent of regional funding to Objective One-type areas. This effectively means Eastern Europe and some small areas of Portugal, Spain and Greece.
About 18 per cent would be reserved for recently emerged regions like the Republic's BMW and Southern and Eastern regions, while the State may benefit from a further 4 per cent reserved for "transnational and cross-Border co-operation".
He warned, however, that EU Peace Programme funding, which is aimed at cross-Border measures between Northern Ireland and the Republic, was due to run out in 2004, even though applications may continue to be processed for a further two years.
Mr Barnier said he was supportive of the Peace Programme but its continuation beyond 2004 was something which the Irish Government might take up with the Council of Ministers.
Mr Barnier will be welcomed to Portlaoise this morning by the Minister for State, Mr Tom Parlon.