The size of the country's population area that will be allowed to receive Regional Aid from the state in the coming years under EU rules has been reduced downwards from 51% to 35.9% under a revision exercise.
However, the Department of Enterprise, Trade and Employment said the maximum allowable coverage had been proposed at 25.64%, before being increased after intensive negotiations with the European Commission.
Under Regional Aid, businesses in economically disadvantaged areas can receive a form of state aid funded by the Irish exchequer to encourage investment and job creation.
Over the last eight years, €160m has been granted in Regional Aid by the Government.
The re-mapping exercise was required under new EU Regional Aid Guidelines issued in April of last year.
The previous map had been in place since 2014 and the department said the new version recognises the strength and improvement in Ireland’s economy since then.
The department claims that although the overall coverage has been reduced, some or all of every county previously included in the map remain in the new one.
The new map will remain in place until 2027, but will be reviewed in 2023 once the findings of Census 2022 are known.
"Areas that did not meet the objective metrics and have been omitted from the Map, will be assisted to apply for alternative forms of State aid in the intervening period," the department said in a statement.
It added that just 7.4% of Ireland’s state aid comes through Regional Aid.
The European Commission said the revision of the Regional Aid Guidelines maintain strong safeguards to prevent member states from using public money to trigger the relocation of jobs from one member state to another, which is essential for fair competition in the single market.
