Areas besides Clare and Kerry were considered for regionalisation but were discounted because they would be seen by the Commission as "wholesale creative geography and subsidy-shopping", the Fianna Fail parliamentary party has been told.
A document, given to TDs and senators yesterday at the second meeting of the party in 24 hours, claimed the inclusion of further areas would "work against the chances of the more modest approach being accepted".
The document also insisted the scope for geographical reclassification was limited, so the option of designating micro-regions such as poverty blackspots within cities or counties was not available.
The Government's handling of the decision to apply for regionalisation based on the west - including Clare and Kerry - the midlands and Border counties caused enormous anger within the party and led to the Taoiseach calling a further meeting yesterday. However, it is understood the annoyance among TDs and senators has been alleviated following the discussions, which were attended by 40 members of the party.
Both Mr Ahern and the Minister for Finance, Mr McCreevy, addressed yesterday's 90-minute meeting in Leinster House. They denied that the Independent TD, Mr Jackie Healy-Rae, had swayed their decision. Clare's and Kerry's inclusion for Objective One status had been mooted in Department of Finance discussions last July.
The 12-page document claimed being able to proffer the entire west coast as an Objective One area "has its attractions and would sit well with the new arrangements which had been approved for the UK, allowing them to qualify Cornwall and west Wales".