Western counties downgraded to 'lagging region' by EU

The north and west of Ireland has been downgraded to a “lagging region” by the European Commission after becoming significantly poorer relative to the European average over recent years.

That's according to a report by Peter O'Dwyer in today's Sunday Business Post.

In its assessment the commission said the region faced a range of development challenges "including lower productivity and educational attainment, as well as a weaker skills base and business environment."

The region’s GDP per head of population has fallen from 82 per cent of the EU average between 2015 and 2017 to an estimated 71 per cent now.

The region, which covers Mayo, Galway, Roscommon, Leitrim, Sligo, Donegal and Monaghan, was downgraded from “more developed” status to a “transition region” and “lagging region”, making it the only part of Ireland to be classified in that manner, the report outlined.

The Commission repeated its previous concerns that regional disparities in Ireland were among the highest in the EU.

It warned that, if left unchecked, the trend of growing inequalities between regions would have a “damaging impact on the economic and social wellbeing” of all regions in Ireland.

The commission said the region continued to show “notable weaknesses” relative to the EU average in areas such as R&D expenditure, the number of employed information and communications technology specialists, and the level of patent applications filed, the Sunday Business Post report highlighted.

It is now ranked the 177th most competitive region out of a total of 240 in the EU.

The assessment was included in a partnership agreement document between Ireland and the EU last week which unlocked €1.4 billion in funding through the bloc’s cohesion policy.

The money, the report outlined, will be used to support the sustainable development of the economy over the next six years, help address regional disparities and aid in decarbonising the economy, and in the country’s digital transformation.