Success could cut EU aid for the West
Rising living standards in the West of Ireland threaten the level of future European funding available to invest in infrastructure in the region over the next decade.
The Western and Northern part of Ireland had been classified as a 'Transition Region' by the European Commission but recent increases in GDP per capita mean the region is 'richer' and will be reclassified as a 'More Developed Region'.
On the face of it, this is a positive outcome as statistics show that the GDP per capita in the Western and Northern region is now marginally above the European Union average of all 27 countries. But this also means that it will be harder for the West and North region to leverage money from the European Commission for infrastructural developments. The figures are contained in a Regional Economic Briefing Note on Eurostat Regional GDP Statistics.
It was presented recently to members of the North West Regional Assembly (NWRA).
“This means less EU funding for the region. Or at the very least it will be more challenging to secure European funding because we are now classified as a 'More Developed Region',” explained Galway City Councillor Níall McNelis (Lab).
The region includes Galway City and County as well as Mayo, Leitrim, Sligo, Roscommon, Donegal and Monaghan.
Councillor McNelis said that the problem with the reclassification was that not all boats in the region had risen equally in recent years.
Urban areas such as Galway City – with big multinationals – pushed up the average GDP for the region, but rural areas in County Galway and elsewhere were left behind.
County Galway and other areas would suffer if funding opportunities are reduced, he said.
Councillor McNelis urged MEPs for the region to engage with NWRA immediately, “otherwise we are sleepwalking into a funding crisis”.
“Rural areas of the West will lose out. Galway City and urban areas are doing well but there is a lack of housing and so people have to live in rural areas, and the transport infrastructure is not adequate in rural areas and needs investment. This reclassification will make it more challenging to get EU funding,” he said.
The report to NWRA said that in 2024, GDP per capita in the Northern and Western Region of Ireland amounted to 100.3 per cent of the EU27 average, down from 104 per cent in 2023.
Despite this, GDP per capita in the Northern and Western Region of Ireland has remained above the EU27 average in each year since 2021.
“This is quite significant as the region had consistently recorded a below average performance between 2007 and 2020.
“Such trends will have significant implications for the next EU funding period of 2028 to 2034,” NWRA members were told.