The European Commission has confirmed that the Northern and Western Region of Ireland will be reclassified as a More Developed Region for the 2028 to 2034 EU funding period.
This decision reflects strong economic growth across parts of the region over the past decade. Based on regional GDP data from 2022 to 2024, the Northern and Western Region now stands at 103 percent of the EU average, moving it above the threshold for Transition Region status.
This is an important milestone. It reflects sustained enterprise growth, continued job creation and the success of many indigenous and internationally trading companies across the region.
However, the headline figure masks significant differences within the region.
During the same period, the West region recorded GDP at 132.3 percent of the EU average, while the Border region stood at 69.7 percent. This contrast is stark and highlights why balanced regional development remains essential.
The move to More Developed Region status will reduce EU co funding rates from approximately 60 percent to 40 percent in most cases, with 50 percent applying in certain programmes. While this represents a change in how projects may be funded, Ireland’s strong national finances mean there is a clear opportunity for Government to maintain investment levels in the West and North West.
Higher EU co funding rates have not always translated into proportionately higher levels of public investment in the region. The change in classification should therefore not be seen as a signal that the need for investment has reduced. Rather, it sharpens the focus on the importance of sustained national investment in infrastructure, enterprise and place based development.
Longstanding infrastructure gaps remain a structural barrier to balanced growth. Continued investment will be needed in transport connectivity, energy grid capacity, water and wastewater services, access to health services and third level education, and the strengthening of enterprise, research and innovation systems across the region.
The delivery of key infrastructure projects in the West and North West over the coming decade will be instrumental in supporting balanced development both between regions and within the Northern and Western Region itself.
Ireland’s National Planning Framework and the National Development Plan Review commit to achieving levels of growth in the Northern and Western and Southern Regions that match projected growth in the Eastern and Midlands Region. This reclassification should now serve as an important test of that national commitment to balanced regional development.
Regional growth does not happen by accident. It is built through sustained investment in enterprise, innovation, infrastructure and communities. Programmes that support indigenous business, improve access to finance and strengthen local enterprise ecosystems will remain central to long term regional resilience.
For the Western Development Commission, this reinforces the importance of a strong regional focus.
Our current strategy focuses on enabling enterprise ecosystems, strengthening partnerships, building sustainable communities and supporting social innovation across all counties of the Western Region. The complexity within the Northern and Western Region demonstrates why regional institutions with local knowledge and a place based perspective continue to matter.
While this reclassification reflects real progress, it also highlights the need to ensure that no part of the region is left behind because of where it is located.
Counties along the Border continue to face structural challenges that require targeted and sustained investment if they are to reach their full potential.
The move to More Developed Region status should therefore be seen as both a positive milestone and a call to maintain momentum.
With strong national finances and a clear policy commitment to balanced development, the coming decade presents an opportunity to ensure that growth is shared more evenly across the West and North West.
Balanced development must remain at the centre of national decision making.
