Wales must seize the opportunity offered by new flexibility in the use of EU aid to support Welsh businesses, Welsh Conservative MEP Dr Kay Swinburne insisted today.
Speaking after a meeting in the European Parliament, Dr Swinburne welcomed moves to ensure so-called cohesion funds can be used to stimulate economic recovery.
West Wales and the South Wales valleys currently receive cohesion funding, the highest level of EU aid.
A report presented at the Parliament’s special committee on the financial, economic and social crisis highlights the role of cohesion funds in supporting entrepreneurship and SMEs.
It suggests using the sector as a method of strengthening local economies and safeguarding jobs.
During the talks Dr Swinburne said EU aid could be used to support capital for business start-ups through the creation of dedicated local venture capital funds supplemented by a larger EU venture capital fund.
She also said transitional funding arrangements should be kept in place for any area which would stop receiving cohesion funds at the end of the current spending round in 2013.
Dr Swinburne said:
“This meeting confirmed that much greater flexibility has been introduced into the use of cohesion funds – especially for the funding of SMEs and entrepreneurs.
“Wales needs to seize the opportunity and earmark significant resources for the provision of business capital.
“The method of delivery needs to be simple to access for small businesses to help them grow during these difficult financial times.
“Funding these opportunities in the commercial sector now will enable Wales to be in a stronger position as the economic recovery gathers strength.”
