The Republic will continue to require significant levels of structural and cohesion funding after 1999, according to the Minister for Finance, Mr McCreevy. He said the State still had "substantial development needs", especially in the area of infrastructure and the Government was determined structural funds would continue to help bring about economic cohesion.

"Jobs growth has been impressive but the acute problem of long-term unemployment remains," said Mr McCreevy. He was speaking at the Irish Congress of Trade Unions' European conference on trade union participation in structural fund programmes.

"In Agenda 2000, the Commission has acknowledged the need to avoid sudden economic shocks such as would be created by the abrupt withdrawal of EU assistance," he said.