Against the background of an EU Court of Auditors report in 2003 that was very critical of the present designation of disadvantaged areas throughout the Union and of possible resulting overcompensation in those areas, the European Commission published earlier this year a draft regulation on rural development which included, among other elements, proposed new criteria for the designation in member states of disadvantaged areas.
Given that 75% of our utilised agricultural area is designated as disadvantaged, Ireland has signalled strongly to the European Commission its concerns about these proposed new criteria and has sought clarification from the Commission about how precisely they are to be applied. The Commission has promised such clarification for early 2005 and we must wait until then before commencing substantive negotiations on the application of the proposed criteria. It is too early in the negotiating process to say what the outcome will be. However, I can say that my aim will be to secure detailed criteria for designation which will benefit best all our disadvantaged areas.