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Effect of the UK leaving the EU on infrastructure in Wales

Published Friday, January 13, 2017

This debate pack has been prepared ahead of the debate on the effect of the UK leaving the EU on infrastructure in Wales to be held in Westminster Hall on Tuesday 17 January at 2.30pm. The subject for debate has been chosen by Stephen Doughty MP.

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The main sources of EU funding for infrastructure are the Connecting Europe Facility (CEF), the European Regional Development Fund (ERDF) and Horizon 2020. Wales is able to benefit from these sources of funding for as long as the UK remains a formal Member of the EU (which includes the period of negotiations after the triggering of Article 50).

European financing for infrastructure is available via the European Investment Bank (EIB). The UK’s future relationship with the EIB is likely to be a feature of exit negotiations.

The UK’s exit from the EU has a number of implications for infrastructure in Wales. Three of the main potential consequences for future infrastructure projects are:

  • A reduction in the amount of funding available for infrastructure projects, if EU funding is not fully replaced by UK government funding
  • Fewer options for the Welsh government and Welsh local authorities to obtain funding and/or financing from
  • UK-controlled funding being allocated according to UK goals and priorities, which may be different from EU goals and priorities

Commons Debate packs CDP-2017-0010

Author: Matthew Ward

Topics: Economic policy, Economic situation, Public expenditure

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