The European Commission has approved Ireland’s map for grating regional aid from January 1 this year to December 31, 2027 under EU state aid rules.
The approval comes under new regional aid guidelines (RAGs), which were revised in April of last year.
Regional aid is a form of state aid funded by the Irish exchequer that can be given to enterprises to encourage investment and job creation in economically relatively disadvantaged areas.
The regional aid map identifies the areas within Ireland where regional aid is allowed under EU rules, as set out in the RAGs.
The new map replaces the previous map in place since January 2014.
The map below is divided by the local electoral areas (LEAs) within each local authority. The LEAs coloured green are eligible for regional aid:
The commission reduced the overall size of the population area of Ireland that could be covered by regional aid due to the economic recovery here since 2014, according to the Department of Enterprise, Trade and Employment.
Originally the maximum allowable coverage for Ireland was proposed to be 25.64%, but following “intensive negotiations” with the commission, it will be 35.9% for the relevant period. This is compared to 51.3% previously.
While there is a reduction in overall coverage, the department noted that some or all areas of each county which were included in the previous map are included in the new map as well.
According to the department, the map was compiled using a series of objective metrics “that balance need for investment with potential for growth”.
The map will be reviewed in 2023 after the Census this year. Areas that did not meet the objective metrics and have been omitted from the map will be assisted to apply for alternative forms of state aid in the intervening period, the department said.
Since 2014 there has been a total of almost €160 million in regional aid granted by the department and its agencies, with annual expenditure ranging from €28 million to €48 million. Other departments also run regional aid schemes.
About 7.4% of all state aid funding by the Irish exchequer is in the form of regional aid.