Fine Gael MEP Jim Higgins has confirmed that the European Union is set to announce details of a €14 billion package that will allow Ireland and other EU countries to claim 100 per cent of the cost of projects funded by the European Social Fund and the European Structural and Cohesion Funds for the years 2009 and 2010.
Speaking following confirmation of the proposal Mr Higgins said: “The deal will see countries repay the costs at a later date. Projects in Ireland are eligible for funding between 15 to 50 per cent of the total costs under current rules. The new system will see the EU pay 100 per cent of the total costs of projects funded in Ireland in 2009 and 2010 under the European Social Fund and the European Structural and Cohesion Funds. Ireland would have to pay its share at a later date. However, the important thing is that projects will not have to be cancelled and work can begin on labour intensive projects to create employment.
“It will mean that projects or work that had to be shelved or were in danger of being shelved due to the drop in the public finances can go ahead with the support of the EU. I hope that cuts in local authority works such as roads, water and waste management services can be reversed and jobs can be saved and created with the go ahead of these projects.
“This will be particularly important for those that have lost their jobs, and those at risk of losing their jobs. The European Social Fund is the main EU fund for job creation, training and employment support and thus any money we can bring in from Brussels to helps us tackle the spiralling unemployment crisis must be welcomed.
“It is now imperative that Ireland is at the top of the queue and is knocking on the EU's door so to maximise the potential of this development. I have already contacted Commissioner Hubner seeking to set up a meeting to discuss the details of the proposal and push for as much funding for Ireland as possible."
