Rhodri's Euro-dither could cost Wales £100m

12.00.00am BST (GMT +0100) Thu 1st Jul 2004

Wales could lose out on more than £100m of European aid a year under proposals being put forward by the UK Treasury, according to figures presented to the Assembly's European committee.

Mike German, leader of the Welsh Liberal Democrats in the Assembly, has called on Rhodri Morgan to distance himself from Gordon Brown's proposals in order to get the best deal for Wales. The European Commission and UK Treasury have different ideas about the size and scope of the next wave of European funding after the current Objective One programme finishes in 2006.

Mr German said: "We now have as concrete a view as possible at present that the UK line on the future of the European budget post-2006 would mean Wales would lose out by upwards of £100m a year. The paper produced for the committee shows clearly that the UK government's proposal would only add around £66m to Wales' annual budget. However, the commission's proposals could see Wales receive up to £180m a year.

"Rhodri needs to back Europe, not Brown/Blair to get the best deal for Wales."