New report says Welsh Government must fight to keep EU funding for Wales

9 December 2009 The Welsh Government must work hard with partner organisations to ensure that Wales does not lose out on European funding in three years time, according to a report from the European and External Affairs Committee of the National Assembly for Wales.

Wales currently qualifies for up to two billion pounds in EU funds under what is called ‘cohesion policy’. The European Structural Funds programmes are designed to support the Welsh economy, help generate jobs and raise living standards. But unless transitional arrangements are put in place after 2013 it is possible that Wales will not qualify for any more financial help from Europe.

The Committee strongly supports maintaining an EU-wide approach to cohesion policy post 2013 and rejects arguments for repatriating” part (or all) of the money as not in the best interests of Wales or the European Union. Its interim report on the future of cohesion policy says that the Welsh Government and Welsh stakeholders must work together to represent Welsh views on the European stage - so that Wales can take its place as a key player in negotiations on EU funding post 2013.

In a letter to EU President José Manuel Barroso, the Committee has called for the National Assembly for Wales’ role as a regional parliament to be recognised. The Committee is concerned that regional parliaments have been missed out of Barroso’s strategic vision for ‘EU2020’, and the importance of European Structural Funds for regions like Wales has also been ignored.

As part of its inquiry the committee took evidence from the European Commission, the Welsh Government, Welsh stakeholders including the Welsh Local Government Association, Higher Education Wales and the Wales Council for Voluntary Action, and from other European regions and networks. The inquiry underlines the value of networking at European level with like-minded” regions (including other parts of the UK such as Cornwall), through informal and formal EU networks, and the Committee supports Welsh stakeholders who are already doing this.

Chair of the European and External Affairs Committee Sandy Mewies AM said:

"The economy and people of Wales have benefited greatly from European funding for many years, but the European Union now consists of 27 Member States, some of which are relatively poorer than us."

"If future funding is repatriated” back to the UK Member State, then Wales loses control of decisions about how best to spend money that could help pull the Welsh economy out of recession and generate more jobs and growth. That cannot be in our best interests, and is why the Committee is pushing for a concerted effort by the Welsh Government and all other interested parties to get the message across to the UK Government and in Europe. We must influence the policy debate and negotiations now, not just wait to see what emerges."

"By reporting our initial findings now, the Committee aims to ensure that Wales takes its rightful place as a key player in the development of future policy, and that the voices of Welsh stakeholders are heard,” said the Assembly Member for Delyn."

The Committee will continue its inquiry as negotiations continue in 2010, alongside inquiry into the EU budget review, but its interim report makes seven recommendations to ensure that Wales does not lose the benefits of European funding after 2013.

Among them is a need for clarification from the Welsh Government as to the nature of the UK Government’s commitment on transitional funding for Wales within cohesion policy post 2013.

The Committee also wants the eligibility criteria for future funding to be looked at again. The criteria must take account of the impact that the economic and financial crisis has had on the Gross Domestic Product (GDP) of European regions like Wales, as this measure is used to determine future levels of funding within the EU budget.

Six of the report’s recommendations are directed at the Welsh Government, and the Committee also recommends that the European Commission takes account of governance issues in developing the successor to its ‘Lisbon Strategy’ for growth and jobs across the EU.