With no help from Westminster, Wales must look for support elsewhere
Plaid Cymru President, Jill Evans, today submitted Plaid's response to the European Commission's consultation on the future of European funding. Unfortunately, West Wales and the Valleys are likely to again meet the criteria to receive the highest category of EU funding; meaning Wales is still one of the poorest regions in the EU.
Jill Evans, Plaid MEP for Wales, said,
"In these difficult economic times EU funding has become more important than ever to support Welsh jobs. This UK Government, like the Labour Government before it, is trying to scrap European funding altogether, with no guarantee that it will be replaced with money from the UK. Given the Government's obvious lack of commitment to projects that the Welsh economy so desperately needs, such as rail electrification from London to Swansea, we can say with certainty that the voice of Wales needs to be heard loud and clear in Europe.
This is why Plaid has once again submitted our own proposals to the Commission on how European funding should continue after 2013. As well as that, we need to make it simpler for people to apply for European funds and strengthen the partnership between elected bodies, education, the private and public sectors. Wales's voice must be heard loud and clear in the EU and so Plaid will continue to ensure this is the case".
Although the ultimate aim for Wales is to no longer require such levels of EU funding, for the time being they have become an important element in efforts to improve the Welsh economy. Already the funds have been used by the Welsh Government to support over 50,000 jobs and 3,000 companies, as well as helping over 100,000 people into work or further learning.
Ends.
Notes
Plaid Cymru's Response to the European Commission's Consultation on the 5th Cohesion Report
Plaid Cymru is one of two coalition partners that constitute the Welsh Assembly Government in the National Assembly for Wales. It is the aim of Plaid Cymru's policies to strengthen Wales's status and influence in the European Union and to deliver much needed prosperity to the people of Wales. To achieve these aims it is important that Wales has the ability to voice its opinions on subjects that are strongly linked to our economy and way of life. Plaid, therefore, welcomes the Commission's consultation exercise on the 5th Cohesion Report and would like to thank the Commission for allowing the many stakeholders in Wales to play a part in the development process of Cohesion policy post-2013. Below you will find details of Plaid's principles, the points in which Plaid and the Commission are in agreement and the areas where we feel the Commission could explore different avenues.
Plaid's Key Principles
West Wales and the Valleys fall below the 75% GDP threshold meaning that since 2000 this area has qualified for the highest level of EU aid. As such Plaid believes that Cohesion policy should apply to all regions across the EU and that Cohesion policy should be focused on the poorest regions within the EU. Furthermore, in order to meet the ambitious objectives set out in the Europe 2020 strategy, future Cohesion policy must be adequately resourced.
Plaid also feels it is necessary that fair transitional support be offered to regions moving out of Convergence in order to entrench gains made and avoid any retrograde steps.
Plaid, therefore, believes:
*There should be a clear focus on the objectives of Europe 2020
* There should be as much flexibility as possible at programme level to enable tailor-made responses to specific regional needs and opportunities
* Simplification is desirable at all levels and that Cohesion policy should build on existing systems rather than seeking wholesale changes.
* Cohesion policy should be developed and implemented in partnership
* Cohesion policy should continue to be based on a seven year cycle
* The ESF should remain closely integrated in Cohesion policy
* The current regulatory mix between ERDF and ESF is a good one and national eligibility rules should continue to be used.
Plaid supports in the Report:
* Proposals for a Common Strategic Framework
* The focus on Europe 2020
* The application of the proportionality principle
* The focus on local development approaches
* The focus on continued infrastructure investment in order to improve long-term competitiveness; as outlined in the Welsh Assembly Government's Economic Renewal programme.
* The proposal to include a transition mechanism to support regions moving out of Convergence. It should be recognised that regions at 76% of GDP, for example, should still receive close to Convergence levels of financial support whilst regions closer to 90% should receive nearer to Competitiveness levels.
* Targeting funding more effectively and to concentrate funds on a smaller number of priorities
* Proposals for a single audit approach.
* Proposals for simplification measures.
Plaid does not support:
* Increasing conditionalities and incentives applied at a member state level. The Development and Investment Partnership Contract cannot take into account the differing and unique administrative arrangements that exist across the EU; such as those in the United Kingdom.
* Centralised targeting of specific territorial areas including urban, mountainous and islands. If the Report's emphasis on the urban area is maintained then there should be no imposition of what constitutes an urban area from the EU. In Wales there is no neat urban/rural split and so such definitions should be left to the regions.
* Compulsory priorities and ring-fenced funding, which will reduce flexibility for regions that may face smaller programmes and place limits on the number of priorities that can be selected.
* Proposals for a performance related reserve. There is a real danger that this proposal will lead to impoverished regions not receiving the funds they need to move out of poverty.
