Special measures are to be worked out by Government to channel EU money into urban blackspots as the Cabinet prepares to split the State into rich and poor areas for structural funding.
The move is expected to help defuse concerns among Fianna Fail backbenchers who have objected to plans to designate at least 13 counties along the Border, in the west and midlands for Objective 1 EU status between 2000 and 2006.
Assurances about the Government's policy will be offered to a meeting of the Fianna Fail Parliamentary Party tomorrow by the Minister for Finance, Mr McCreevy.
Strong political objections have arisen over the fact that regionalisation would leave the other counties with "Objective 1 in transition" status, involving a gradual reduction in all grant aid to these areas. The level of funding would be likely to drop dramatically for them after 2003.
The Taoiseach, Mr Ahern, last night signalled that the Government is to "look at mechanisms" to deal with disadvantaged urban areas, stressing that they are "very important" and must be the focus of investment if regionalisation is adopted.
However, while he insisted he would not pre-empt a Cabinet decision on regionalisation, he said he would like to hear "a coherent argument" as to why Ireland should cut itself off from structural funding after 2006. This would happen if Ireland were to continue as a single economic unit - as it now is.
Denying there were any difficulties in Cabinet on the issue, Mr Ahern said questions, however, arose about the resources available to the State in the period after 2006.
Though the Taoiseach did not elaborate on how the issue of urban blackspots and other areas of deprivation outside the special regions would be dealt with, senior Government sources said they would become the focus of EU funding procured under Objective 1 in transition status.
Although Cabinet will consider regionalisation today, no decision is expected for at least two weeks. According to the Taoiseach, the pressure to come to a conclusion has been removed as Agenda 2000, covering the next tranche of EU funds, is not on the agenda of the Austrian Special Summit at Portschach later this month. It will instead be discussed by EU leaders in Vienna in December.
Sources said that unrest over the matter in the Fianna Fail parliamentary party had also to be dealt with. The Taoiseach promised his TDs and senators that they would be fully briefed by Mr McCreevy, a move that effectively precluded Cabinet from making an early decision.
A Dail debate on the issue will also take place after Cabinet comes to a final decision.