DIRECTORATE GENERAL FOR INTERNAL POLICIES note on Ireland.pdf · DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES REGIONAL DEVELOPMENT

DIRECTORATE GENERAL FOR INTERNAL POLICIES

POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

REGIONAL DEVELOPMENT

ECONOMIC, SOCIAL AND

TERRITORIAL SITUATION OF

IRELAND

IN-DEPTH ANALYSIS

for the REGI Committee

This document was requested by the European Parliament's Committee on Regional

Development.

AUTHOR

Marek KOŁODZIEJSKI

Policy Department B: Structural and Cohesion Policies

European Parliament

B-1047 Brussels

E-mail: [email protected]

EDITORIAL ASSISTANCE

Virginija KELMELYTE

LINGUISTIC VERSIONS

Original: EN

ABOUT THE PUBLISHER

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[email protected]

Manuscript completed in March 2014.

© European Union, 2014.

This document is available on the Internet at:

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The opinions expressed in this document are the sole responsibility of the author and do

not necessarily represent the official position of the European Parliament.

Reproduction and translation for non-commercial purposes are authorized, provided the

source is acknowledged and the publisher is given prior notice and sent a copy.

mailto:[email protected]

mailto:[email protected]

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DIRECTORATE GENERAL FOR INTERNAL POLICIES

POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

REGIONAL DEVELOPMENT

ECONOMIC, SOCIAL AND

TERRITORIAL SITUATION OF

IRELAND

IN-DEPTH ANALYSIS

for the REGI Committee

Abstract

This analysis provides an overview of Ireland's economic, political and

administrative framework for EU Cohesion Policy, as well as its National Strategic

Reference Framework for the 2007-2013 period.

The paper also gives an insight into Ireland's preparations for the implementation

of the new Cohesion Policy for the 2014-2020 period.

The analysis has been prepared in the context of the Committee on Regional

Development's delegation to Ireland in March 2014.

IP/B/REGI/NT/2014_01 March 2014

PE 529.045 EN

Economic, social and territorial situation of Ireland

3

TABLE OF CONTENTS

LIST OF ABBREVIATIONS 5

LIST OF FIGURES 7

LIST OF TABLES 7

1. KEY FACTS AND FIGURES 9

1.1. Political and governmental structures 10

1.2. Economy 11

1.3. Population 13

2. INSTITUTIONAL AND ADMINISTRATIVE FRAMEWORK FOR EU

COHESION POLICY 15

2.1. Current administrative division of Ireland 15

2.2. Local Government Reform of 2014 17

2.3. Structural Funds management 18

3. EU COHESION POLICY IN IRELAND 2007-2013 19

3.1. Objectives and funds 19

3.2. NSRF and Operational Programmes 20

3.4. OP 'Southern and Eastern' 22

3.5. OP 'Border, Midland and Western' 23

3.6. European Territorial Cooperation 24

3.7. OP ‘Peace and Reconciliation’ - PEACE Programme 24

3.8. Implementation of Cohesion Policy - examples of projects 26

4. EU COHESION POLICY IN IRELAND 2014-2020 29

4.1. Partnership Agreement 29

4.2. Budget 29

4.3. European Territorial Cooperation 30

4.4. Urban policy 31

SUMMARY 33

REFERENCES 35


4


5

LIST OF ABBREVIATIONS

BMW

DG REGIO

Border, Midland and Western region

Directorate-General for Regional Policy, European Commission

ERDF European Regional Development Fund

ESF

EUR

ICT

IT

LAU

MFF

European Social Fund

Euro

Information and Communication Technology

Information Technology

Local Administrative Unit

Multiannual Financial Framework

NMS New Member State

NSRF National Strategic Reference Framework

NUTS

OP

PPS

R&D

ROP

S&E

SME

SEUPB

Nomenclature of Territorial Units for Statistics

Operational Programme

Purchasing Power Standards

Research and Development

Regional Operational Programme

Southern and Eastern region

Small and Medium-sized Enterprise

Special European Union Programme Body


6


7

LIST OF FIGURES

Figure 1:

Map of Ireland 9

Figure 2:

Key Data 10

Figure 3: Main Irish goods exports and imports 13

Figure 4:

County and City Councils division 15

Figure 5: Regions in Ireland, 2007-2013 20

Figure 6: Structural Funds for the 2007-2013 period. Breakdown by theme as proposed by

Ireland in its draft operational programmes 21

Figure 7: OP ‘Peace and Reconciliation’ 2007-2013 24

Figure 8: House of Waterford Crystal 26

Figure 9: Key elements of GIFT project 27

Figure 10: National Broadband Scheme 27

Figure 11: Degree of Urbanisation in Ireland 2011 31

LIST OF TABLES

Table 1:

Real GDP growth rate in Ireland compared to the EU average 11

Table 2:

General government gross debt (in % of GDP) 11

Table 3:

Inflation rate in Ireland compared to the EU average 12

Table 4:

Population (in million) 13

Table 5:

Crude rate of net migration plus adjustment (per thousand inhabitants) 14

Table 6:

Unemployment rate (in %) for all the population and the young below 25 14

Table 7:

Structural funds for Ireland in EUR million 2007-2013 19

Table 8:

OP ‘Southern and Eastern’ 2007-2013 22


8

Table 9:

OP ‘Border, Midland and Western’ 2007-2013 23

Table 10:

OP ‘Peace and Reconciliation’ 2007-2013 25

Table 11:

Structural funds for Ireland in EUR million 2014-2020 30


9

1. KEY FACTS AND FIGURES

Figure 1: Map of Ireland

Source: Eurostat

Ireland (Éire) is a country located on the island of Ireland to the northwest of continental

Europe. Ireland, comprising 26 counties, covers around 80% of the surface of the island. In

the north-east of the island six counties of the Northern Ireland are located. They are

governed by a power-sharing Executive and Assembly as established under the Good Friday

Agreement.

With a population of 4.59 million citizens, Ireland is the seventeenth biggest country in the

European Union. Nearly one third of the population of the country lives in its capital,

Dublin. The Irish and English are the official languages of the country.

Ireland is a member of the Euro area but it is not a member of the Schengen area. It

remains attached to its longstanding policy of neutrality, and is thus not a member of

NATO. However, Ireland participates in NATO’s Partnership for Peace programme.


10

Figure 2: Key Data

Area 69 797 km2

Population 4 591 087

Population density (per km2) 66.9

Official language Irish, English

Currency EURO

GDP per capita (PPS) 129*

Growth rate 0.2%*

Unemployment rate 14.7%

Inflation rate 1.9%*

Public deficit 8.2%*

Public debt 117.4% of GDP*

Source: Eurostat for 2013, * Data for 2012

1.1. Political and governmental structures

Ireland is a republic and a parliamentary democracy. Its law is based on Common Law

(modified by subsequent legislation) and on the Constitution of 1937. The Constitution of

Ireland (Bunreacht na hÉireann) defines the powers and functions of the President

(Uachtarán na hÉireann), both houses of the Parliament (Oireachtas) and the Government

as well as outlines the fundamental rights of citizens.

The President is the Head of State. He or she is elected by direct vote for a 7-year term

and may not serve more than 2 terms. Michael D. Higgins has been the President of Ireland

since November 2011.

The President appoints the Prime Minister (Taoiseach) on the nomination of the House of

Representatives. Other members of the government are appointed by the President on the

nomination of the Prime Minister.

Ireland’s Parliament is composed of the President and two chambers: House of

Representatives (Dáil Éireann) and Senate (Seanad Éireanne). The Dáil has 166 members

(Teachtaí Dála) elected for a five-year term who are representing 43 constituencies. In

each constituency there are three, four or five members elected by universal suffrage.

The Seanad is comprised of 60 members (Senators). Eleven of them are nominated by the

Prime Minister, while the rest are elected from a number of vocational panels and by

graduates of universities. The main role of the Seanad is to revise legislation sent to it by

the Dáil. Any amendments made by the Seanad, however, can still be rejected by the Dáil.

The Seanad can also, with the exception of Finance Bills, initiate new legislation.

Executive power is exercised by the Government divided into Departments. The Irish

government is headed by the Prime Minister and has between 6 and 14 ministers. The

Prime Minister, Deputy Prime Minister and Minister of Finance have to be members of the

Parliament. The Government is responsible to the Dáil. Enda Kenny, the leader of Fine

Gael, has been the Prime Minister since March 2011.


11

The main political parties currently represented in the Dáil are:

Fine Gael - member of EPP;

Labour Party - member of S&D;

Fianna Fáil - member of ALDE;

Sinn Féin - member of GUE/NGL.

Although, in the elections to the European Parliament in Ireland in 2009 Sinn Féin did not

win any seat, the party is also active in the Northern Ireland and there it won one mandate.

The representative of Sinn Féin elected in the Northern Ireland is a member of the

GUE/NGL.

Another party represented in the European Parliament is:

Socialist Party - member of GUE/NGL.

Currently, Ireland has 12 Members of the European Parliament. This number will fall to

11 for the 2014-2019 mandate.

1.2. Economy

When joining the European Communities in 1973, Ireland was one of the poorest Member

States. However, since that time it has transformed itself from a largely agricultural society

into a modern, technologically advanced economy. Before the beginning of the economic

crisis, Ireland had a very dynamic economy and gained the name of “the Celtic Tiger”.

European structural and cohesion funds helped Ireland to push its economic development

well above the EU average. In 2007 it reached 146% of the EU average GDP per capita in

PPS. With a total annual GDP of almost EUR 164 billion (in 2012) Ireland is the fifteenth

biggest economy in the European Union.

Table 1: Real GDP growth rate in Ireland compared to the EU average

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ireland 3.7 4.2 6.1 5.5 5.0 -2.2 -6.4 -1.1 2.2 0.2

EU 1.5 2.6 2.2 3.4 3.2 0.4 -4.5 2.0 1.6 -0.4

Source: Eurostat

However, overheated construction and banking sectors were very vulnerable when they

faced the economic crisis in 2008. After the collapse of the construction and property

markets, Irish banks required a large state support. The state had to recapitalize the

biggest banks and this effort increased the state debt enormously. In 2010, Ireland had to

ask for international help and took EUR 67.5 billion loan from the EU and the

International Monetary Fund.

Table 2: General government gross debt (in % of GDP)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ireland 31.0 29.4 27.2 24.6 24.9 44.2 64.4 91.2 104.1 117.4

EU 61.9 62.2 62.7 61.5 58.9 62.2 74.5 80.0 82.4 85.2

Source: Eurostat

The recession and high costs of support for Irish banks caused the Irish public debt to

increase from less than 25% of GDP in 2007 to almost 120% in 2012. Additionally the


12

public deficit grew very high and reached 8.2% of GDP in 2012. The state revenues in 2012

amounted to around 35% of GDP and the expenditures exceeded 42% of GDP.1

In the 1990s and in the beginning of 21st century, Ireland's economy was burdened by

inflation, usually exceeding the EU average. In particular, housing prices were increasing

over 10% a year. However, with the economic crisis inflation dropped and between 2009

and 2010 Ireland experienced deflation. Prices in the housing market have dropped by

almost a half since 2007.

Table 3: Inflation rate in Ireland compared to the EU average

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ireland 4.0 2.3 2.2 2.7 2.9 3.1 -1.7 -1.6 1.2 1.9

EU 2.0 2.0 2.2 2.2 2.3 3.7 1.0 2.1 3.1 2.6

Source: Eurostat

Currently, Ireland is slowly recovering and has regained access to the financial markets. In

December 2013, it became the first country to exit the bailout program. The

unemployment rate is slowly decreasing giving good perspectives for the future. The

country has still the third highest GDP per capita in the European Union, after Luxembourg

and Austria.2

Ireland is well known for its moderate corporate taxes (currently at the level of 12.5%), a

well-educated workforce and good business environment. In 2013, it was ranked the

fifteenth (out of 185 countries) in the World Bank's "Easy of doing business" ranking. These

conditions are very attractive to foreign investments, in particular in the IT sector. Ireland

has been the choice of many renowned corporations e.g. Intel, Google, Microsoft, Facebook

and Amazon.

Ireland's economy is strongly export oriented. Its exports have already recovered after

the crisis of 2008-2009 and in 2012 exports of goods and services were the highest in its

history. In total, exports of goods and services exceeded EUR 182 billion and the foreign

trade surplus reached EUR 46 billion in 2012.3 Services exports account for almost half of

the total exports, and computer services exports, being its largest category, amounted to

EUR 36.5 billion in 2012. In 2013, Ireland had the third largest trade surplus in Europe,

after Germany and the Netherlands.4

Almost 60% of Irish goods exports are sent to the European Union. Its main trading

partners are the United States (20%), the United Kingdom (15%), Belgium (14.7%),

Germany (8.2%) and Switzerland (5.5%). Also almost 60% Irish goods imports come

from the EU. The main partners are the United Kingdom (31.4%), the United States (13%),

Germany (8.1%), China (6.8%) and the Netherlands (5.5%). Chemical products (including

medical, pharmaceutical and organic chemicals products) are responsible for almost 60% of

Irish goods exports. Main categories of goods imports are: machinery and transport

equipment (around 25%), chemical products (20%) and mineral fuels (14%).5

1 Source: OECD Economic Surveys: Ireland 2013. 2 Source: Eurostat - GDP per capita in PPS for 2012. 3 Source: Irish Department of Jobs, Enterprise and Innovation. 4 Source: Eurostat, data for the period January-November 2013. 5 Source: Central Statistics Office. data for 2012.


13

Figure 3: Main Irish goods exports and imports

EXPORTS IMPORTS

Source: Central Statistics Office for 2012

Ireland's agriculture and food industry are responsible for 7% of country’s GDP. They

employ around 150,000 people and export products worth over EUR 9 billion. Around 5

million hectares (70% of the total surface) are used for agriculture and forestry. The main

sectors of agricultural industry are beef and dairying.6

Tourism is another important sector of Ireland's economy. Each year, Ireland is visited by

around 7 million tourists. Tourism provides to its economy around EUR 3.4 billion a year.7

1.3. Population

Ireland has over 4.59 million inhabitants and its population is constantly growing. During

the last 10 years it increased by almost 15%. It is the result of both: high natural

population growth, which is the highest in the EU, and immigration.

Table 4: Population (in million)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Ireland 4.02 4.11 4.20 4.34 4.45 4.45 4.54 4.57 4.58 4.59

Source: Eurostat

Until the beginning of the economic crisis, Ireland was a destination country for a large

number of immigrants, especially from the EU New Member States. However, this trend

changed with the crisis and during the last years more people were leaving Ireland than

entering. In 2006, Ireland had the highest surplus of net migration in the EU, but in 2012 it

already had the highest deficit in the EU. In 2012, almost 12% of the inhabitants of Ireland

were non-Irish citizens. The biggest minorities are Polish (over 124,000 inhabitants) and

UK nationals (over 112,000 inhabitants).8

6 Source: “Ireland in Brief. A general overview of Ireland’s political, economic and cultural life”, Department of

Foreign Affairs and Trade. 7 Idem. 8 Source: Central Statistics Office. Data for 2011.


14

Table 5: Crude rate of net migration plus adjustment (per thousand inhabitants)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ireland 8.1 12.2 15.2 22.2 16.9 -12.3 11.6 -5.6 -7.4 -7.6

Source: Eurostat

The Irish population is very young. The share of population under 25 years is the highest in

the EU and in 2013 reached 33.6% (the EU average was 27.3).9

Dublin with its surroundings has the biggest population in Ireland (1.27 million

inhabitants). Other big cities together with their urban areas are Cork (519,000

inhabitants), Galway (250,000 inhabitants) and Limerick (191,000 inhabitants).10

Until the beginning of the economic crisis, Ireland had a low level of unemployment.

However, since 2008 it has drastically increased to 14.7%. The level of unemployment of

youth under 25 is particularly high. Since 2012 the unemployment rate has been slowly

decreasing.

Table 6: Unemployment rate (in %) for all the population and the young below 25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total

population 4.5 4.4 4.5 4.7 6.4 12.0 13.9 14.7 14.7 13.1

Young

below 25 8.7 8.6 8.7 9.1 13.3 24.0 27.6 29.1 30.4 26.6

Source: Eurostat

9 Source: Eurostat. 10 Source: Central Statistics Office. Data for 2011.


15

2. INSTITUTIONAL AND ADMINISTRATIVE FRAMEWORK

FOR EU COHESION POLICY

2.1. Current administrative division of Ireland11

Ireland is divided into 26 counties. Its local government system is currently administrated

by 114 local authorities:

34 on the LAU1 level (29 County Councils and 5 City Councils); and

80 on a lower level (5 Borough Councils and 75 Town Councils)

In addition Ireland is divided into:

8 Regional Authorities on the NUTS3 level; and

2 Regional Assemblies on the NUTS2 level.

Figure 4: County and City Councils division

Source: “Local Government and the Elected Member”, Department of the Environment, Heritage and Local

Government, 2004

11 This chapter is based mainly on the information from the webpage of the Irish Department of the Environment,

Community and Local Government.


16

County and City Councils cover the entire territory of Ireland. Most of the 26 counties

have one County Council but some counties also have a City Council and two of them are

divided into more than one County Councils (Dublin County is divided into three County

Councils and one City Council, and Tipperary County is divided into two County Councils).

Borough and Town Councils do not cover the entire territory of Ireland, and thus cannot

be used as LAU units. Borough and Town Councils are located in the area already covered

by County Councils.

Irish local governments provide the democratic representation of local communities. This

role is recognised in the Irish constitution. Its Article 28A also guarantees direct elections

for the Councils.

Members of the Councils are elected in direct elections for a period of five years. They can

be a member of only one County or City Council at the time. However, they can be also a

member of one of the Borough or Town Council. The number of members of the Council

depends of the size of the population living in the area of the Council.

The elected councils are the main policy makers on the local level. They take the important

decisions on policy and financial matters e.g. the adoption of the local budget, development

plans etc. Each year, County and City Councils chose their Chairperson (Cathaoirleach).

She or he is responsible for chairing the Council meeting and for maintenance of the order

of meetings.

Executive functions of the County and City Councils are performed by County and City

Managers. They are appointed by the Councils for a term of seven years and are

responsible for the day-to-day management of the local government’s administration. The

Council can suspend and remove a County/City Manager before the end of his/her term.

Local governments do not only have a representational role but also an operational one.

They are responsible for delivery services to their inhabitants, enterprises and other

institutions active in their territory. These services generally include:

Housing;

Planning;

Roads;

Water supply;

Environmental protection;

Recreation and amenities; and

Community infrastructure.

Local authorities also play an important role in supporting economic development and

enterprises at local level.12

12 After Local Government Management Agency.


17

Irish local governments have multiple sources of revenues13:

General and specific purpose state grants;

Charges for goods and services e.g. water charges, parking charges etc.;

Rates levied annually on the occupiers of commercial properties;

Community Funds and Community Initiative Schemes;

Charges for non-principal private residences.

The eight Regional Authorities were established in 1994 and they help to co-ordinate

some of the county and city activities. They also play a monitoring role in relation to the

use of EU structural funds. Members of the Regional Authorities are not directly elected but

are nominated by the local councils from among their own directly elected members. This

facilitates the coordination of the City and County activities.

Each Regional Authority has an Operational Committee and an EU Operational Committee

that are responsible for the activities in the two main areas of their competences.

The two Regional Assemblies (the Border Midland & Western Region and the Southern &

Eastern Region) were established in 1999 under new structures for regionalisation. Their

main responsibilities are:14

to manage and monitor their respective Regional Operational Programmes under the

structural funds;

to promote coordination in the provision of public services across their areas;

to monitor and make proposals in relation to the general impact of EU funding;

to make public bodies aware of the regional implications of their policies and plans.

These two Assemblies are also active in the European Territorial Cooperation programmes.

Members of the Regional Assemblies are not directly elected. They are nominated by the

local councils.

2.2. Local Government Reform of 2014

On 27 January 2014, the President of Ireland signed the Local Government Reform Act

2014 which introduces fundamental reorganisation of Irish local governments. After the

local elections planned for 23 May 2014 the structure of the local governments will be

largely modified.

The reform will introduce 95 new municipal districts, which on 1 June 2014 will replace

previous smaller 80 Borough and Town Councils. Municipal districts will include towns and

their hinterlands. They will not be separate local authorities, but decision-making bodies.

The role of district councillors will be performed by county councillors elected in the district.

Local issues will be decided on district level while strategic issues will be decided on County

13 Source: webpage of the Irish Department of the Environment, Community and Local Government. 14 Source: webpage of the Irish Regions Office.


18

level. Main competences of the municipal district will cover: local area plans, bye-laws,

local charges and programmes of works e.g. roads, housing and amenities.

The signed reform will also diminish the number of County and City Councils from 34

to 31. Waterford County Council will be merged with Waterford City Council, Limerick

County Council will be merged with Limerick City Council and North Tipperary County

Council will be merged with South Tipperary County Council. In addition, County and City

Managers will be replaced by Chief Executives.

The role of elected councils will be strengthened. Local government will have reinforced role

in the area of the local economic development. New Local Community Development

Committees will be created for better planning in the context of the local development.

They will be responsible for preparation of Local Economic and Community Plans.

The reform foresees the preparation of the plebiscite for the Dublin metropolitan area

(consisting of three County Councils and one City Council). It will decide about new local

government arrangements for this area and the possibility of direct elections of the Mayor

that would perform the power of the executive for all four Councils. This plebiscite should

be organised in 2014.

The current eight regional authorities and two regional assemblies will be replaced by

three regional assemblies. Their main competences will be linked to:

- Preparation of Regional Spatial and Economic Strategies;

- Management of EU investment programmes.

When preparing Regional Spatial and Economic Strategies, regional assemblies will be

obliged to consult its works with the local planning authorities.

2.3. Structural Funds management

The two Regional Assemblies plays the main role in the implementation of EU structural

funds in Ireland. They are the Managing Authorities for the two Irish Regional

Operational Programmes (ROP).

However, the current preparation of the Partnership Agreement is being coordinated by the

Department of Public Expenditure and Reform. The initial consultations started in March

2013 and until the day of the preparation of this note, the final version of the Irish

Partnership Agreement has not been approved. Managing Authorities for European

Structural and Investment Funds, local governments and social partners are involved in the

consultations.

Regional Assemblies for the Border Midland and West Region (BMW) and for the

Southern and Eastern Region (S&E) will also execute the role of Managing Authorities

for the ROPs in the 2014-2020 financial period. They are responsible for consultations on

the preparation of these programmes.


19

3. EU COHESION POLICY IN IRELAND 2007-2013

3.1. Objectives and funds

For the 2007-2013 period, Ireland was allocated an amount of around EUR 900 million15

of Cohesion Policy funding:

EUR 750 million under the Regional Competitiveness and Employment

Objective;

EUR 150 million under the European Territorial Co-operation Objective.

To complement EU investment under the National Strategic Reference Framework (NSRF),

the national Irish contribution is expected to reach the amount of over EUR 1.5 billion of

public funding. That brings the total budget available for Cohesion Policy activities to almost

EUR 2.5 billion.

Ireland has translated the broad priorities from the NSRF into 3 Operational

Programmes (OPs):

Regional OP for the Border, Midland and Western region (EUR 146 million,

ERDF);

Regional OP for the Southern and Eastern region (EUR 229 million, ERDF);

Country-wide OP Human Capital Investment (EUR 375 million, ESF).

Table 7: Structural funds for Ireland in EUR million 2007-2013

Objective Fund EU National

Public

Total

Regional

Competitiveness and

Employment

ERDF 375 564 939

ESF 375 982 1357

Total Regional Competitiveness and

Employment 750

Total European

Territorial Cooperation16 ERDF 150 - 150

Total 900 1546 2446

Source: European Commission, DG REGIO

In the programming period 2007-2013 Southern and Eastern region was eligible as a

Competitiveness and Employment region, and Border, Midland and Western region was

eligible as a phasing-in region.

Until January 2014, Ireland had already accumulated payments of over EUR 526

million, which means over 70% of the planned EU commitments.17 This is the third

highest result in the EU (after Portugal and Spain).

15 Unless otherwise indicated, all figures in this section are from the website of DG REGIO. 16 Each Territorial Cooperation Programme includes a minimum of 15% co-financing from each participating

Member State. 17 Source: European Commission, DG REGIO.


20

Figure 5: Regions in Ireland, 2007-2013


3.2. NSRF and Operational Programmes18

As laid down in Ireland's National Strategic Reference Framework, the EU funding will

be invested in three themes and priorities:

• Promoting human capital investment by upskilling the workforce and increasing

the participation and setting up of groups outside the workforce. It focuses on

women, people with disabilities, single parents, travellers and ex-offenders. A

special programme will target immigrants given their significant contribution to the

economy.

• Supporting innovation, knowledge and entrepreneurship in the regions. The

objective is to boost Research and Development (R&D) in areas and institutions

where this has been lacking in the past. The aim is to double the number of PhD

graduates over the 2007-2013 period and to continue to develop foreign direct

investment.

18 Unless otherwise indicated, this chapter is based on the information from the website of DG REGIO.


21

• Strengthening the competitiveness, attractiveness and connectivity of the

National Spatial Strategy defined by the government. The aim is to improve

access to quality infrastructure and to promote environmental and sustainable

development.

Ireland's NSRF includes a significant commitment to the Lisbon Strategy for jobs and

growth, as it allocates a substantial share (85%) of its investment directly to elements of

this strategy.

Figure 6: Structural Funds for the 2007-2013 period. Breakdown by theme as

proposed by Ireland in its draft operational programmes



22

3.4. OP 'Southern and Eastern'

The Southern and Eastern region is supported within the framework of the "Regional

Competitiveness and Employment" objective. The total budget for the OP 'Southern and

Eastern' is EUR 367 million including EUR 146.6 million of the Community support from

the ERDF. This represents almost 20% of Structural Funds allocations to Ireland.

The main aim of the OP 'Southern and Eastern' is to contribute to increasing the

productivity and competitiveness of the Region, to support sustainable development and to

help improve quality of life through investment in the development of innovation and the

knowledge economy, supporting the protection of the environment, sustainable

development and the take-up of broadband and supporting city regeneration and town

renewal.19 This OP has four main priorities:

Priority 1: Innovation and the Knowledge Economy

This priority focuses on the Lisbon Agenda objectives: to develop further the knowledge,

R&D, innovation and entrepreneurial base of the region's economy and to support

collaboration and technology transfer between research institutions and the business.

Priority 2: Environment and Accessibility

This priority focuses on investments in renewable energy production and energy

conservation and on increasing broadband take-up throughout the region.

Priority 3: Sustainable Urban Development

The aim of this priority is to enhance the attractiveness of the designated Gateways and

Hubs as places to live in, to work in and to invest in. The central aim is to support and

complement efforts to ensure that the cities and towns maximise their potential.

Priority axis 4: Technical Assistance

Support for programme management and implementation, including technical support,

communications and publicity, financial control activities, research and evaluation actions.

Table 8: OP ‘Southern and Eastern’ 2007-2013

Priority axis Community funding National contribution Total funding

Innovation and the

Knowledge Economy 96 000 000 144 000 000 240 000 000

Environment and

Accessibility 26 000 000 39 000 000 65 000 000

Sustainable Urban

Development 20 000 000 30 000 000 50 000 000

Technical assistance 4 603 534 7 396 466 12 000 000

TOTAL 146 603 534 220 396 466 367 000 000


19 Source: 'Southern and Eastern' Operational Programme.


23

3.5. OP 'Border, Midland and Western'

The Border, Midland and Western region is supported within the framework of the "Regional

Competitiveness and Employment" objective as a Phasing-in region. Its total budget is EUR

457.5 million including EUR 228.8 million of the Community support from the ERDF. This

represents over 30% of Structural Funds allocations to Ireland. The OP BMW was modified

in 2009 and 2011.

The main aim of the OP 'Border, Midland and Western' is to facilitate innovation, ensure

sustainable development, improve accessibility and develop the urban fabric within the

region, in order to enhance overall productivity and competitiveness.20 The OP BMW has

four main priorities:

Priority 1: Innovation, Information and Communication Technologies (ICT) and

Knowledge Economy

The objective of this Priority is to enhance the research, innovation and ICT infrastructure

and capacity of the BMW region, to promote entrepreneurship and enterprise development

and to support collaboration and technology transfer between research institutions and the

business sector that responds to the economic development needs of the region.

Priority 2: Environment and Risk Prevention

The objective of this Priority is to contribute to the sustainable development of urban and

rural areas as well as protection and enhancement of the urban and rural environment. This

priority stimulates energy efficiency, renewable energy deployment and the integration of

sustainable energy practices into public policies.

Priority 3: Urban Development and Secondary Transport Networks

The objective of this Priority is to invest in integrated sustainable initiatives and to

modernise the region's transport infrastructure.

Priority 4: Technical Assistance

Support for programme management and implementation, including technical support,

communications and publicity, financial control activities, research and evaluation actions.

Table 9: OP ‘Border, Midland and Western’ 2007-2013


Innovation, ICT and the

Knowledge Economy 100 000 000 100 000 000 200 000 000

Environment and Risk

Prevention 37 500 000 37 500 000 75 000 000

Urban Development and

Secondary Transport

Networks

89 000 000 89 000 000 178 000 000

Technical Assistance 2 258 838 2 258 838 4 517 676

TOTAL 228 758 838 228 758 838 457 517 676


20 Source: 'Border, Midland and Western' Operational Programme.


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3.6. European Territorial Cooperation

The ERDF also contributes towards financing the European Territorial Cooperation objective

consisting of three strands: cross-border, trans-national and interregional. Ireland takes

part in the 10 territorial cooperation programmes:

Three cross-border programmes with other EU Member States:

o 'Ireland – Wales' (with the UK);

o 'Northern Ireland, the Border Region of Ireland and Western Scotland' (with

the UK);

o 'United Kingdom - Ireland' (PEACE III) - (with the UK).

Three transnational programmes which cover larger areas of cooperation:

o 'North-West Europe';

o 'Atlantic Area';

o 'Northern Periphery'.

Four interregional cooperation programmes: INTERACT II, URBACT II, ESPON

and INTERREG IVC (total budget for all the 27 EU Member States: EUR 443 million).

For these activities, during the 2007-2013 period, Ireland had allocated EUR 150 million.

3.7. OP ‘Peace and Reconciliation’ - PEACE Programme

The Operational Programme ‘Peace and Reconciliation’, also called PEACE III

Programme, is financed under the European Territorial Cooperation objective. Its total

budget amounts to almost EUR 333 million and the EU contribution through the European

Regional Development Fund amounts to EUR 225 million.

The PEACE Programme aims to reinforce a peaceful and stable society by promoting

reconciliation in Northern Ireland and the Border Region of Ireland (Louth, Monaghan,

Cavan, Leitrim, Sligo and Donegal counties). It advances social and economic stability in

the region by supporting actions that promote cohesion between the two communities. This

Programme is a continuation of previous PEACE programmes (PEACE I and II).

Figure 7: OP ‘Peace and Reconciliation’ 2007-2013



25

The main priorities of the OP “Peace and Reconciliation” are:

Priority 1: Reconciling communities

This priority focuses on building positive relations at the local level. It supports the

collaboration between the public and private sectors

that focus on reconciliation, cultural diversity and

equality. It aims to establish cross-community and

cross-border initiatives that improve trust and

acceptance.

In addition this priority focuses on acknowledging and

dealing with the difficult past. It helps to handle the

transition to peace and reconciliation and ensure that

conflict victims and survivors are able to cope with

the past on their own terms.

Priority 2: Contributing to a shared society

This priority focuses on the regeneration of urban,

rural and border areas that appear derelict,

segregated, under-used, threatening or unwelcoming.

The purpose is to transform these areas into shared

spaces. Programme provides funding for new, shared

public spaces and help address the issues of physical

segregation as manifested by peace walls and

sectarian graffiti, flags or emblems.

This priority aims also to develop the capacity of key

institutions to deliver services in a manner that

contribute to a shared society within Northern Ireland

and on a cross-border basis.

Priority 3: Technical assistance

The programme will utilize technical assistance during

implementation. Technical assistance will include

administration, monitoring, evaluation and control.

Table 10: OP ‘Peace and Reconciliation’ 2007-2013


Reconciling communities 128 952 254 61 966 046 190 918 300

Contributing to a shared

society 82 402 656 39 597 344 122 000 000

Technical Assistance 13 490 738 6 482 769 19 973 507

TOTAL 224 845 648 108 046 159 332 891 807


The International Fund for

Ireland

In 1986, British and Irish

governments established an

independent international

organization to promote

economic and social advance,

and encourages contact, dialogue

and reconciliation between

nationalists and unionists

throughout Ireland. The Fund’s

mission is to tackle the

underlying causes of sectarianism

and violence and to build

reconciliation between people

and within and between

communities throughout the

island of Ireland.

Today, the International Fund for

Ireland is financially supported

by the European Union, United

States of America, Canada,

Australia and New Zealand. Total

resources committed to the Fund

to date amount to EUR 890

million. It funds over 5,800

projects across the island of

Ireland.


26

3.8. Implementation of Cohesion Policy - examples of projects

Project: House of Waterford Crystal 21

After the closure of the Waterford Crystal manufacturing facility in 2009, 600 people lost

their jobs. Waterford City Council developed a plan to re-establish a crystal manufacturing

and visitor centre in the city. This action was supported with the European Regional

Development Fund under the OP 'Southern and Eastern'.

In the new centre, visitors can learn about the 200 years history of crystal-making in the

town. The new Waterford Crystal Manufacturing Facility melts down more than 750 tonnes

of crystal and produces more than 45 000 pieces each year using traditional methods.

Figure 8: House of Waterford Crystal


The House of Waterford Crystal project had a total cost of EUR 5.5 million, with the ERDF’s

contribution of EUR 2.7 million. The project was funded through the ‘Southern and Eastern’

Regional Operational Programme 2007-13.

Project: Green Innovation and Future Technologies22

The Green Innovation Future Technologies (GIFT) project promotes sustainable

development in the areas of the green economy, green tourism, waste management and

green technology. It supports the up-skilling SME businesses and help to grow a

sustainable green economy. This is achieved and facilitated through face to face and online

workshops as well as networking events linked to the green business growth opportunities.

The GIFT project is a collaboration between Bangor University in Wales and Waterford

Institute of Technology and University College Dublin in Ireland.

The GIFT project has a total budget of EUR 2.1 million, with the ERDF’s contribution of EUR

1.1 million through the ‘Ireland – Wales’ Territorial Co-operation Programme 2007-2013.

21 Source: European Commission, Inforegio webpage. 22 Source: Webpage of the GIFT project http://giftnetworkproject.eu

http://giftnetworkproject.eu/


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Figure 9: Key elements of GIFT project

Source: GIFT Project

Project: National Broadband Scheme23

The National Broadband Scheme project guarantees affordable, quality broadband to all the

areas in Ireland. To do that, a private telecommunications provider was selected, through

competitive tendering for the creation and operation of new broadband infrastructure in the

areas that previously had no access to the high quality telecommunications infrastructure.

Figure 10: National Broadband Scheme


23 Source: European Commission, Inforegio webpage.


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The ‘National Broadband Scheme’ project had a total public contribution of EUR 79.8 million

with the European Regional Development Fund’s contribution of EUR 36 million The project

was funded through the 2007-13 ‘Border, Midland and Western’ and ‘Southern and Eastern‘

Regional Operational Programmes.


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4. EU COHESION POLICY IN IRELAND 2014-2020

4.1. Partnership Agreement

In 2014, each EU Member State is required to prepare a Partnership Agreement - the

document that will outline the priorities for the EU Cohesion Policy and its funds in the

programming period 2014-2020. However, at the time of the preparation of this in-depth

analysis the Irish Partnership Agreement has not yet been approved. Thus, the information

provided in this document is based on the second draft of the Irish Partnership

Agreement published in February 2014 on the webpage of the Irish Department of Public

Expenditure and Reform. The consultations for this document will be closed on 7 March

2014.

The Department of Public Expenditure and Reform has an overall responsibility for

implementation of the EU structural funds in Ireland. It is, in particular, responsible for the

preparation of the Partnership Agreement.

In the programming period 2014-2020, each of the European Structural and Investment

Funds in Ireland will have its own Operational Programmes. The European Social Fund will

have one country-wide OP. The European Regional Development Fund will be implemented

through two Regional Operational Programmes, one for the Border Midland & Western

region, and one for the Southern & Eastern region.

The Department of Education and Skills will exercise the role of the Managing Authority for

the ESF OP. For the ROPs the role of Managing Authorities will be exercised by the two

Regional Assemblies: Border Midland & Western Regional Assembly and Southern & Eastern

Regional Assembly.

Currently, Border Midland & Western Regional Assembly and Southern & Eastern Regional

Assembly are preparing drafts of their Regional Operational Programmes.

4.2. Budget

For the programming period 2014-2020, Ireland has been allocated an amount of EUR

1017 million (in 2011 prices) of Cohesion Policy funding:24

EUR 869 million under the Investments for Growth and Jobs goal;

EUR 148 million under the European Territorial Co-operation goal.

In 2014 prices it is already EUR 1120.5 million: EUR 951.6 million under the Investments

for Growth and Jobs goal, and EUR 168.8 million under the European Territorial Co-

operation goal. In addition, Ireland has been allocated EUR 68.1 million for the Youth

Employment Initiative.

In the programming period 2014-2020, both regions: Southern and Eastern region and

Border, Midland and Western region are eligible as more developed regions.

24 Source: European Commission.


30

Ireland plans to translate the broad priorities from the Partnership Agreement, related to

the ERDF and ESF, into 3 Operational Programmes (OPs):

Regional OP for the Border, Midland and Western region (EUR 178.7 million,

ERDF);

Regional OP for the Southern and Eastern region (EUR 278.1 million, ERDF);

Country-wide OP Human Capital Investment (EUR 494.9 million, ESF).

Table 11: List of Programmes and Allocations 2014-2020 (in EUR million, in

2014 prices)

Programme

title Fund Total 2014 2015 2016 2017 2018 2019 2020

Southern & Eastern

Regional OP ERDF 278.1 37.4 38.2 38.9 39.7 40.5 41.3 42.1

Border, Midland & Western Regional OP

ERDF 178.7 24.0 24.5 25.0 25.5 26.0 26.6 27.1

Human Capital

Investment OP ESF 494.9 66.6 67.9 69.3 70.6 72.0 73.5 75.0

Source: Draft Partnership Agreement

4.3. European Territorial Cooperation

In the 2014-2020 period, Ireland will participate in the following European Territorial Co-

operation Programmes:

‘Ireland-Scotland-Northern Ireland’ Cross-Border Programme;

‘Ireland-Wales’ Programme Cross-Border Programme;

‘Atlantic Area’ Transnational Co-operation Programme;

‘Northern Periphery and Arctic’ Transnational Co-operation Programme;

‘North West Europe’ Transnational Co-operation Programme; and

‘INTERREG V’ Inter-regional Programme.

Ireland will also participate in the PEACE IV Programme, the continuation of the previous

PEACE programmes, which aims to reinforce progress towards a peaceful and stable society

and to promote reconciliation through building positive relations, creating shared public

spaces and developing key institutional capacities for a shared society.

In the period 2014-2020, ERDF will provide EUR 148 million for the European Territorial Co-

operation goal in Ireland.

25 Information about the Operational Programmes and their budgets for the period 2014-2020 are based on the

draft of the Irish Partnership Agreement published in February 2014 on the webpage of the Department of

Public Expenditure and Reform. The final version can be modified.


31

4.4. Urban policy

Sustainable Urban Development is one of the important objectives of EU Cohesion

Policy in the 2014-2020 period. Ireland will undertake it through specific priority axis in its

Regional Operational Programmes. It will dedicate around EUR 46 million to it.

Ireland has broad experience in the implementation of its urban policy. The current

National Spatial Strategy 2002-2020 defines a network of nine competitive urban Gateways

supported by additional nine Hub towns.

When using the Eurostat methodology, for identification of cities for the Urban

Development Platform, most urbanised Irish regions are Dublin, Cork, Galway, Waterford

and Limerick. All of the above cities, with the exception of Galway, are in the S&E region.26

Figure 11: Degree of urbanisation in Ireland 2011


26 Source: Draft Partnership Agreement.


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33

SUMMARY

Ireland is the seventeenth largest Member State of the European Union. It is located on the

island of Ireland to the northwest of continental Europe. It shares a border with the

Northern Ireland, which is governed by a power-sharing Executive and Assembly as

established under the Good Friday Agreement.

Ireland is a republic. The President, currently Michael D. Higgins, is the Head of State.

Ireland’s Parliament is composed of the President and two chambers: the House of

Representatives (Dáil Éireann) and the Senate (Seanad Éireanne). Members of the Dáil are

elected in direct elections for a period of five years. Members of the Seanad are nominated

by the Prime Minister and a number of vocational panels. Executive power is exercised by

the Government divided into Departments. It is headed by the Prime Minister (Taoiseach),

currently Enda Kenny.

Currently, Ireland is divided into 114 local governments: 34 County and City Councils

and 80 Borough and Town Councils. Members of these councils are elected in direct

elections for a period of five years. In addition, Ireland is divided into eight Regional

Authorities and two Regional Assemblies that have mainly a coordinative role for local

governments and an important role in the implementation of EU structural funds. Members

of Regional Authorities and Assemblies are nominated by the councils from among their

members.

In 2014, Ireland decided to reform its local governments system. The number and

competences of local governments will be changed after the local elections planned for May

2014. Some County and City Councils will be merged. Borough and Town Councils will be

replaced by 95 municipality districts.

When joining the European Communities in 1973, Ireland was one of the poorest Member

States. However, series of reforms and good use of European funds transformed and

boosted the Irish economy. In 2007 it reached 146% of the EU average GDP per capita in

PPS. However, overheated construction and banking sectors were very vulnerable to

the economic crisis which started in 2008. To support its banking sector Ireland had to

request financial help from the European Union and the International Monetary Fund.

After the hard times of the crisis in 2009-2010, Ireland’s economy is slowly recovering. In

December 2013, Ireland became the first country to exit the bailout program.

For 2007–2013, Ireland has been allocated a total of EUR 900 million of Cohesion

Policy funding: EUR 750 million under the Regional Competitiveness and Employment

Objective and EUR 150 million under the European Territorial Co-operation objective. The

whole territory of Ireland is eligible under the Regional Competitiveness and Employment

objective. The use of EU funds is planned in the two Regional Operational Programmes

(EUR 375 million, ERDF), one country-wide OP Human Capital Investment (EUR 375

million, ESF) and 10 territorial co-operation programmes.

For 2014–2020, Ireland has been allocated a total of EUR 1017 million of Cohesion

Policy funding: EUR 869 million under the Investments for Growth and Jobs goal and EUR

148 million under the European Territorial Co-operation goal. Both Irish regions are

considered to be more developed regions. The use of EU funds is planned in the two

Regional Operational Programmes (ERDF), one country-wide OP Human Capital Investment

(ESF) and territorial cooperation programmes.


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35

REFERENCES

‘A strategy for Growth. Medium-Term Economic Strategy 2014-2020’, Stationary Office,

December 2013

‘Country Fact Sheet – Ireland’, European Commission DG REGIO, July 2013.

‘Country Report. Ireland’, Economist Intelligence Unit, September 2012.

‘Ireland in Brief. A general overview of Ireland’s political, economic and cultural life’,

Department of Foreign Affairs and Trade, January 2013

‘Local Government and the Elected Member’, Department of the Environment, Heritage

and Local Government, 2004

‘OECD Economic Surveys – Ireland’, OECD, September 2013.

Operational Programme 'PEACE III'

Position of the Commission Services on the development of Partnership Agreement and

programmes in IRELAND for the period 2014-2020, European Commission, 09/11/2012

Regional Operational Programme 'Border, Midland and Western 2007-2013'

Regional Operational Programme 'Southern and Eastern 2007-2013'

Websites:

http://www.bmwassembly.ie/index.html - Border, Midland and Western Regional Assembly

http://www.citizensinformation.ie – Citizens Information Board

http://www.cso.ie - Irish Central Statistics Office

http://www.djei.ie – Department of Jobs, Enterprise and Innovation

http://www.doingbusiness.org - Doing Business Project

http://www.esf.ie – ESF in Ireland

http://www.environ.ie – Department of the Environment, Community and Local

Government

http://www.enterprise-ireland.com – Enterprise Ireland

http://www.eustructuralfunds.gov.ie - EU Structural Funds in Ireland

http://giftnetworkproject.eu - GIFT project

https://www.internationalfundforireland.com - International Fund for Ireland

http://www.iro.ie – Irish Regions Office

http://www.lgma.ie - Local Government Management Agency

http://www.oireachtas.ie – Irish Parliament

http://www.president.ie – Irish President

http://www.seregassembly.ie - Southern and Eastern Regional Assembly

http://www.taoiseach.ie – Irish Prime Minister

http://www.bmwassembly.ie/index.html

http://www.citizensinformation.ie/

http://www.cso.ie/

http://www.djei.ie/

http://www.doingbusiness.org/

http://www.esf.ie/

http://www.environ.ie/

http://www.enterprise-ireland.com/

http://www.eustructuralfunds.gov.ie/

http://giftnetworkproject.eu/

https://www.internationalfundforireland.com/

http://www.iro.ie/

http://www.lgma.ie/

http://www.oireachtas.ie/

http://www.president.ie/

http://www.seregassembly.ie/

http://www.taoiseach.ie/


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Documents

DIRECTORATE GENERAL FOR INTERNAL POLICIES note on Ireland.pdf · DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES REGIONAL DEVELOPMENT