The European Commission recently agreed that Member States availing of the Financial Stabilisation mechanism could also avail of an increased EU co-funding rate for the Rural Development Programme 2007-2013 (RDP) in 2012 and 2013. Ireland has chosen to avail of this opportunity and this will result in amendments to the financial plan for Axes 3 and 4 (LEADER) of the RDP for the remainder of the Programme.
Currently, under Axes 3 and 4 (LEADER) of the RDP, funding of 45% provided for by Ireland is matched at a 55% rate from the European Agricultural Fund for Rural Development (EAFRD). The new system will facilitate the provision of 15% of Irish funding in 2012 and 2013 with EAFRD funds matching at a rate of 85%. The amount of EAFRD funding available over the lifetime of the Programme will remain the same. The changes will decrease the pressure on the national Exchequer to provide matched funding while still allowing Ireland to draw down the full EAFRD allocation for this programming round. This provides a unique opportunity to accelerate the expenditure under the Programme and it is reflected in the increase in allocation of €34 million made available to LEADER this year bringing the total allocation available in 2012 to €96 million.
The local development companies delivering the Programme are being exhorted to do all they can to ensure that maximum expenditure is achieved both this year and next, thereby maximising the benefit of this opportunity to Ireland.
While the reduced Exchequer contribution will, in effect, reduce the size of Axes 3 and 4 over the lifetime of the Programme, the level of funding remains significant at over €300 million and the Programme will continue to provide access to substantial financial resources to rural communities all over Ireland.