Wales has only won a new tranche of EU funding because of the “failure” to grow the economy and lift communities out of deprivation, it is claimed.
The Welsh Government insists that the announcement that more than £2bn of EU funding is “great news for Wales” and can have a “real impact on the Welsh economy.”
However, Conservative Assembly leader Andrew RT Davies said: “Whilst this funding will be welcomed, we must not forget that it has only been granted due to the failure of successive Welsh Labour Governments to improve Wales’ economic performance in previous tranches.
"Back in 2000, former First Minister Rhodri Morgan described Objective 1 funding as a ‘once in a lifetime’ opportunity.
“Well here we are again, and under Welsh Labour parts of Wales remain amongst the poorest areas in the EU, never mind the United Kingdom.”
Former Swansea University economist John Ball said he was angered that Wales still qualified for cohesion funding.
He said: “This is an indictment of the failure of the Welsh Government to address the most fundamental problem we face in Wales and that is the state of the Welsh economy. It’s as simple as that.”
The funding will be delivered over seven years with around £1.6bn going to West Wales and the Valleys and over £325m to East Wales.
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It was announced on Wednesday night after previous criticism that the agreement had been held up while the UK Government agreed a partnership deal with the EU.
Welsh Government finance minister Jane Hutt said: “This announcement is a significant milestone with the European Commission confirming structural fund allocations to Wales of over £2bn.
"This is great news for Wales and this new EU funding will have a real impact on the Welsh economy and job creation. It will help us deliver more innovative and inspiring EU-funded projects.
“I am now expecting both the European Regional Development Fund and European Social Fund programmes for West Wales and the Valleys and for East Wales to be approved very shortly. This will allow us to start delivering on our shared goals across Government for sustainable economic growth and jobs.”
However, Dr Ball said he was “genuinely angry” to hear that Wales had qualified for another round of funding and argued that the nation needed to grow prosperity from within rather than pinning hopes on inward investment.
He said: “Wales can benefit by being on the periphery of Europe, perversely, if we grasp the bullet and start to build businesses from within.”
Pointing to the example of Finland, he said: “Here is a country on the fringes of Europe with no real resources to speak of, with a language nobody else speaks... and yet it has the highest standards of living, the highest standards of education of any country within Europe. Why?
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“Because they have built their business and their skills and education from within.”
He added: “No successful economy was ever built on external ownership and until we grasp that fact we’re not going to get anywhere.”
David Davies, the Monmouth Conservative MP who chairs the Welsh Affairs committee, regretted that Wales’ poorest areas still qualified for funding.
He said: “I think it’s a damning indictment of Labour’s failure in Wales that 15 years after we were promised that the Assembly would be the dawn of a new era it’s still one of the poorest areas of Europe. I’m also worried that frankly the Assembly has become responsible for spending this money and I’m not sure what good any of it will actually do.
“If we want to see an increase in wealth in Wales we need to look at ways of supporting business and getting business in and for me that would be better transport links and better broadband and IT and phone signals.”
Mr Davies said the EU was returning a “small percentage” of cash sent to Brussels by the UK.
He said the country would be “much better off not giving them any of that money at all but just spending it on the areas which need it in the United Kingdom”.
A Welsh Government spokesperson hit back, saying: “As usual, Andrew RT Davies appears to have conveniently forgotten the devastation wrought by former Conservative Governments to our former industrial heartlands, and the fact that since 2000 there has been the most severe recession in living memory. This in turn has been followed by a savage series of cuts and austerity measures imposed by the UK Government led by his party.
The new funding announced yesterday will help the Welsh Government to continue with measures to help Wales climb out of recession.”
Welsh Lib Dem economy spokeswoman Eluned Parrott AM said: “Time and time again Wales has qualified for this money, but successive Welsh Labour Governments have failed to use it to its fullest potential. I want to see this cash used to improve the lives of the individuals and communities who need it the most.
“This money has arrived at an ideal time to improve public transport infrastructure in the South Wales Valleys, tying in with the long awaited Metro project to connect communities and enable people to travel quickly and easily to places of employment such as Cardiff and Newport. I want this to be the last time Wales qualifies for this handout. We need to use this cash to boost our economic output to catch up with the rest of the UK and other successful growing economies.
“The Welsh Labour Government has already failed to bring the poorest parts of Wales in line with other areas. If Wales still qualifies in a few years’ time for the next round of funding after being given £2bn to sort out our economy then the Welsh Labour Government will have failed Wales once again.”
Welsh Labour MEP Derek Vaughan said: “EU funding is vital for programs such as Jobs Growth Wales, the Welsh Government Modern Apprenticeship scheme and business support schemes like the Joint European Resources for Micro to Medium Enterprises (JEREMIE) fund which helps Welsh businesses to expand. It also provides essential support for infrastructure projects and town centre developments.
“EU projects have already helped some 186,900 people to gain qualifications and over 59,800 into work, and created some 29,000 jobs and over 9,800 enterprises. This new funding means we can continue to build on these positive results.
“I worked very hard to secure this level of funding for Wales. Initially the Tories were insisting that we received £400m less, but the Welsh Government and I lobbied the UK Government and the EU Commissioner to ensure Wales didn’t miss out.
“Wales has a good track record in terms of spending EU funding wisely on worthwhile programs and I’m confident this will continue to be the case with this new funding. I’m looking forward to seeing the positive difference that this funding makes in Wales.”
Plaid Cymru’s MEP Jill Evans said: “While this European funding is a help, this is the third time that we have qualified because of our disappointing economic situation and we are not seeing improvement. We get this funding because we are among the poorest parts of the European Union.
“West Wales and the Valleys is the very poorest part of northern Europe. Plaid Cymru thinks that this is entirely unacceptable. The aim should be that these parts of Wales do not qualify again – because we have improved our economy.
“To do that we need a detailed economic plan to transform Wales. We need to look at other countries which have used EU money effectively. We have to look at what can be done better with this series of funding.
“How can we create more jobs and work opportunities? Plaid Cymru has consulted with private sector business as we should involve them much more in the decision making process and use of European funding, as they are in tune with what will create jobs.
“We need to see long-term investment that creates more opportunities, not just spending money on short-term projects. In terms of EU benefits, structural funds are only part of the story.
“We need a Government that will work in partnership with the EU to improve transport and create real opportunities for young people.”