Wales will probably lose its EU funding #Brexit

David Cameron has come out saying that the UK cannot guarantee Welsh EU funding following the Brexit vote.

Wales is currently in receipt of structural funding for the Valleys and West Wales up to 2020. Of the £1.8bn committed, some 40% has yet to be allocated. There is little hope that this money will continue to be allocated past 2018 unless the UK stays as a full member of the EU.

European Structural Funds in Wales have created 37,000 jobs according to the EU funds in Wales website.

This for me is one of the tragedies of the result of the referendum, EU structural funds are only available to full EU members. Since the objective of these funds is to correct imbalances of economies and social cohesion between European regions.

Even though the UK is a net contributor to the EU, Wales received most of the return EU inward investment since GDP per head is less 75% of the EU average, meaning it was one of the less developed regions. And thus entitled to EU structural funds.

The maths never added up

During the referendum campaign leader of the Welsh Conservatives, Andrew RT Davies claimed Wales would be better off financially outside the EU.

Mr Davies said: “Wales could be as much as half a billion pounds a year better off if the UK votes to leave the European Union.”

But this is only going to be true if the UK leaves the EU and doesn’t have to then pay to access the European Economic Area. The Think tank Open Europe estimated that the UK would pay 94% of its current costs (£31.4bn annually) if it left the EU, and then joined the EEA under a similar agreement to Norway’s.

It was never going to as easy as changing budget lines, instead of sending that money to the EU it is swapped to the “give to the Welsh” budget heading. Given the impact on the economy and possible UK recession, there might not be the money in the economy to continue the investment programme.

And while the EU will continue to fund projects in Wales up until the UK leaves, it is highly likely that planned investment after 2018 will be cancelled.

Sometimes you never understand what you have until you lose it.

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3 thoughts on “Wales will probably lose its EU funding #Brexit

  1. Reblogged this on From guestwriters and commented:
    First people had to hear the reality that there will be no 350 million pounds for the NHS. One after the other lie came on the surface and several people at last came to understand that those funds they got from the European Union they can now forget and Worse, they shall not have to hope to receive such amounts of subsidies from their own government.

    If they would have listened more to the economics and to the real advisers of the European Union and to the politicians who did not play the clown or pulled the emotional and popular string, their eyes would have gone open earlier and the votes would be totally different.

    1. Sorry Mr Bridgeman, your article had to be Re blogged on one of my other sites, as a Guest writer article. I just forgot to scroll down in the choice of blogs before publishing. Got it then reblogged under my personal name on my personal website Marcus Space. You are welcome to delete this notice and the reblog remark from Guestspeaker for “From Guestwriters”

  2. Reblogged this on Marcus Ampe's Space and commented:
    Certain Britons may have the hope their country could become an associated country to Horizon 2020, with the same access and funding rules as other members, but this is something where the European Union has to be very firm and clear, that when having spoken out to leave it has to be leave and not any more counting on presents from the European member states.

    Great Britain may want to become a member of the European Economic Area but that shall be at a higher cost than having staid a member of the European Union and with less advantages.

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