In advance of intensive negotiations on the next round of EU structural funds the EU Regional Commissioner, Ms Monika Wulf-Mathies, will have helped concentrate the mind of Government with her robust intervention this week. Amid reports that the Cabinet is ready to divide the State into various regions, the commissioner expressed her concern about so called "subsidy shopping" in which national governments manoeuvre to maximise their take from Brussels.
The commissioner's comments come amid reports which hint at a sea-change in the Government's regional policies. Until now, the Republic has been treated as a single region for the purposes of drawing down structural funding. This Objective One status allowed the State to draw down the maximum level of EU funding but the Republic's record levels of economic growth have transformed the situation ahead of the next round of negotiations for the period 1999-2006.
Reports in recent days have signalled a possible new Government strategy. It appears that the Cabinet may agree to divide the State into separate administrative regions. This would allow 13 counties in the West, the Midlands and the Border areas to retain Objective One status and the maximum level of EU funding. Although the Government has not apparently discussed possible regionalisation with the commissioner, she does not appear over-enthusiastic. "So far I see the interest in getting as much money as possible, but don't yet see this corresponding changes in regional governance", she said earlier this week. In truth, the Government's apparent conversion to the benefits of regional devolution is suspect. The Republic remains one of the most centralised states in the EU with underdeveloped regional structures. There has traditionally been a reluctance in Merrion Street to devolve power to local regions and communities.
The Cabinet now faces a dilemma. Should it endorse regionalisation, it will need to convince Brussels that any new structures are a bona fide attempt to devolve power to the regions. But there is also a political calculation to be made. Expectations of a possible further windfall in EU funds have already been raised in some rural areas; conversely, concern has rightly been expressed by Mr Proinsias De Rossa of Democratic Left that the marginalised in Dublin, Cork and Limerick could lose out. Ironically, reports from Brussels suggest that the Republic's overall take from the next round of structural funds will be broadly similar - with or without a move towards regionalisation. In many respects, this is an argument about politics and political priorities in this State - rather than an exchange with Brussels. For all that, the Government now knows - courtesy of Ms Wulf-Mathias - the ground rules for the upcoming negotiations: proper regional devolution forms an integral part of EU regional policy.