Reclassification of region could cost €200M in funding

A reclassification by the EU of Ireland’s Northern and Western Region – which includes counties Monaghan and Cavan – could result in the potential loss of up to €200 million in funding, it was claimed at the May meeting of Monaghan County Council.

The Monaghan councillors agreed to support a resolution forwarded by Cavan County Council calling on the Northern and Western Regional Assembly to prepare a comprehensive position paper examining the implications of the reclassification, which will see the region elevated to the “more developed” category.

In correspondence accompanying the resolution, Cavan County Council Meetings Administrator Elaine McGinn said the reclassification has come about because the region as a whole has moved above the EU average GDP threshold.

“While this reflects positive economic growth in some sectors,” Ms McGinn wrote, “it does not necessarily capture the uneven development that continues to exist across parts of the region, particularly within the Border counties.

“Counties along the Border and North Midlands, including Donegal, Sligo, Leitrim, Cavan and Monaghan, continue to face structural challenges, including lower population growth, infrastructure deficits, geographic peripherality and lower levels of private sector investment compared with other parts of the State. This reclassification therefore carries significant implications for the future availability of EU Cohesion and Structural Funds in areas that still require sustained investment to support balanced regional development.”

Proposing the resolution be supported, Cllr Seamus Coyle (FF) said Cavan County Council is highlighting a very significant issue for the border region.

Being placed in the upper classification level could cost their counties significant European funding, he believed.

Cllr Coyle expressed the view that a study by the Regional Assembly will show that in important respects parts of the region such as Monaghan and Cavan do not meet the criteria to be seen as a more developed area.

He thought the resolution should be sent to Cavan/Monaghan’s Oireachtas representatives, Taoiseach Micheál Martin TD and all relevant Government Ministers.

Cllr Coyle’s proposal was seconded by Cllr Raymond Aughey (FF).

Cllr Seán Conlon (SF) said there is a huge economic disparity between the west of the region and the border counties of Monaghan, Cavan and Donegal.

He feared access to sources such as the European Regional Development Fund, which had facilitated the major redevelopment project underway at the former St. Louis Convent lands in Monaghan Town, could be lost.

“There could be €200 million lost to the Border region,” Cllr Conlon estimated.