EU pledges no sudden drop in funding

THERE will be no sudden drop in EU funding for Ireland post 1999, EU Commissioner, Mrs Monika Wulf-Mathies, has confirmed.

Speaking after the function to introduce the Economic and Social Cohesion report, Mrs Wulf Mathies said there would be no sudden withdrawal of funding after 1999. "We must be very careful not to destroy with the left hand what the right hand has built up," she said. "So any changes will be gradual."

However, she also stressed that structural funds had never been meant to be a long term subsidy. "They were put there to achieve objectives and must be withdrawn when those objectives have been met," she said.

She also pointed out that Ireland's GDP per capita ratio will be above 90 per cent of the EU average in 1999. Officials here point out that the most likely measure to be used will be the average of the years 1996-98. As a result, the Irish authorities have been arguing for a change in the measurement from GDP to GNP. This is seen as a far fairer measurement of our performance, given the distorting impact of multi nationals on the GDP figures.

Mrs Wulf Mathies said the Commission was "always open to debate" on the appropriateness of the yardstick. But she added that, so far, the Commission considered GDP to be an appropriate measure.

If this were to change, Ireland's chances of winning further EU funding post-1999 would be strengthened. It is likely that, using the GNP yardstick, Ireland would still qualify for funding with GNP per capita likely to come in at around 80 per cent of the EU average from 1996-98.