EU upgrade of region’s status could cost Mayo millions of euro in future funding for major infrastructure projects
Mayo councillors have been warned that the European Commission’s decision to upgrade the northwestern region of Ireland from a “region in transition” to a “more developed region” could have serious consequences for the county’s future development.
The reclassification, confirmed by the Commission to the Northern and Western Regional Assembly (NWRA), will shape the next round of EU funding allocations for 2028 to 2034.
The news was discussed at a meeting of the Claremorris and Swinford Municipal District, where councillors welcomed progress on long‑awaited plans to bring vacant homes in Knock back into use.
Churchfield Lawns in Knock currently has 30 empty units, many of which have remained idle for years.
In December, Mayo County Council announced it had secured funding to take over 16 of the homes, with plans to refurbish them for social housing now underway.
Cllr Richard Finn, who has repeatedly raised concerns about the estate, welcomed the long-awaited news.
“It is great to see that the first 16 of those houses will be coming on stream,” he said, urging for work to begin as soon as possible to “keep people out of homelessness.”
Director of Services for Housing Tom Gilligan used the discussion to warn councillors that similar projects may become more difficult to deliver in the future.
He explained that the EU’s reclassification will reduce the co‑funding rate for infrastructure projects in border and western counties from 60pc to 40pc from 2028.
“I think it is a very significant announcement and unfortunately it will have an impact on Mayo and other border counties as well,” he said.
The NWRA region covers Mayo, Sligo, Roscommon, Galway, Leitrim, Donegal, Cavan and Monaghan.
EU funds administered through the Assembly support economic development, infrastructure upgrades and social projects - areas where Mayo officials have long argued for sustained, targeted investment to counter decades of underfunding and widening regional inequality.
The European Commission classifies regions based on GDP per head relative to the EU27 average.
While “less developed regions” fall below 75pc of the EU average, “regions in transition” sit between 75pc and 100pc, and “more developed regions” exceed 100pc of the EU average.
Recent economic data shows significant disparities in GDP across the NWRA area.
While Galway, Mayo and Roscommon now record a GDP per capita of around 129pc of the EU average, counties Donegal, Cavan, Sligo, Leitrim and Monaghan sit at 68pc
Cllr Gerry Murray highlighted a key issue with these figures. He explained that profits earned abroad by multinational companies are repatriated to Ireland, thereby inflating GDP figures.
As a result, counties like Mayo can appear far wealthier on paper compared to the reality experienced by people living there.
“Unfortunately, that skews the GDP per head. It’s artificial,” Cllr Murray said. “It’s saying we are much wealthier than we actually are.”
He added that while the European Commission is aware the numbers do not reflect local living standards, the classification system makes the region appear far wealthier than it is.
Mr Gilligan agreed and said the upgrade will be “detrimental” for Mayo, particularly as the county continues to rely on support for major infrastructure and regeneration projects.
This article has been funded by the Local Democracy Reporting Scheme.