Two new European funding schemes for Northern Ireland worth over £1.2 billion sterling have been finalised at a signing ceremony at Stormont.
The £862 million Building Sustainable Prosperity Scheme is a six-year transitional programme aimed at providing financial assistance to the North after it lost its preferential Objective 1 status granted to the EU's most deprived regions.
The other scheme, PEACE II, which runs over four years providing £366 million, is effectively a continuation of PEACE I, which was put in place in the wake of the Belfast Agreement to aid peace and reconciliation in the North. Around £80 million of PEACE II is earmarked for projects in the Republic's Border counties.
The North's First and Deputy First Ministers, Mr David Trimble and Mr Seamus Mallon, who had lobbied extensively in Brussels for the aid package, were joined at the signing ceremony by the EU Commissioner for Regional Policy, Mr Michel Barnier; the North's Finance Minister, Mr Mark Durkan; and the Government's Minister for Social, Community and Family Affairs, Mr Ahern.
Mr Barnier called on local politicians to use the funding efficiently as there was likely to be a significant drop in future aid to the region.
Mr Trimble said the event concluded two years of intensive negotiation with Brussels. "This day marks an important step not just in terms of the new round of structural funds support for Northern Ireland but also in terms of the devolved administration's relationship with the European Union."
Paying tribute to the Commission for its continuing financial and political support, Mr Mallon said the North did not want to be a "begging-bowl member" but wanted to make a full and constructive contribution to the EU.
Money from PEACE II is due to be distributed to projects meeting its requirements by September. While projects need to be aimed at enhancing peace and reconciliation, PEACE II has a stronger emphasis on economic initiatives providing skills and prosperity than PEACE I.
The funding packages were welcomed by the Alliance Party but criticised by Sinn Fein, who claimed PEACE II threatened the "partnership ethos" established under PEACE I.