Euro cash grab ‘will cost NW millions’

The North West could lose out on millions of pounds of European money after a Government decision to return cash, according to Euro-MP Chris Davies.

He says the European Commission has offered a six-month extension on its December 2008 deadline to all countries for unused European regeneration funds, as part of a £178 billion economic stimulus package.

But the Government has decided not to let English regions apply — despite the fact Scotland, Northern Ireland and Wales are set to benefit from the money.

The value of the grant is set to rise by a fifth because of the fall of the pound compared to the Euro.

The North West could lose up to £76 million from its Objective 2 programme, while Merseyside could lose up to £126 million from Objective 1.

Some of this money can be claimed back by June but no new projects can now be started as a result of the Government decision.

Mr Davies has condemned the Government decision to allow European money earmarked for the North West to be returned to London.

He said: “The North West keeps getting short-changed.

“It is ridiculous that our deprived areas have been denied the chance to spend extra European money just because the Government doesn’t think the money can be spent within the set deadlines.

“Projects in regeneration areas are always ready to go and I believe that more of this money could have been spent on regenerating the North-West if the Government had accepted the European Union’s offer.

“This is a poor excuse and a smokescreen for a Government in dire financial trouble.”