European funding

What is European funding?
The European Union encourages economic development in its 27 member states by investing in each region to promote economic growth, employment and skills development. To qualify for the highest level of development aid, a region must have a gross domestic product (GDP) of less than 75 per cent of the EU average GDP. European funding works on the basis of seven year programming cycles; the last programme ran from 2000-2006 and the current programmes run from 2007-2013.

For the period 2007-2013, parts of Wales have qualified for three programmes:

  • The Convergence programme for West Wales and the Valleys is eligible for the highest level of development aid from the EU (formerly Objective One). It covers 15 local authority areas: Anglesey, Blaenau Gwent, Bridgend, Caerphilly, Carmarthenshire, Ceredigion, Conwy, Denbighshire, Gwynedd, Merthyr Tydfil, Neath Port Talbot, Pembrokeshire, Rhondda Cynon Taff, Swansea and Torfaen.
  • The Regional Competitiveness and Employment area in East Wales qualifies for a much lower level of funding and is available in Cardiff, Flintshire, Monmouthshire, Powys, Wrexham and the Vale of Glamorgan.
  • The Ireland-Wales Cross-border Co-operation programme will fund partnership projects between organisations in the West coast of Wales and the East coast of Ireland. The following areas in Wales are eligible: Pembrokeshire, Carmarthenshire, Ceredigion, Gwynedd, Conwy, Denbighshire, and Anglesey.

The Welsh European Funding Office (WEFO) is a part of the Welsh Assembly Government’s Department for the Economy and Transport, and administers European Structural Funds in Wales. The Structural Funds available to Wales have been agreed through negotiations with the European Commission, with the programmes closely aligned to Assembly Government strategies and the European Union’s (EU) Lisbon and Gothenburg agendas for jobs and growth.

WEFO has agreed with the European Commission how the funds are to be spent and the programmes managed in Wales, as set out in the Operational Programmes for the Convergence and the Regional Competitiveness and Employment Programmes 2007–2013.

There are separate European Regional Development Fund (ERDF) and European Social Fund (ESF) programmes for each region, which are divided into Priorities and Themes that describe the areas of activity to be funded in Wales. The detail of how that activity will be delivered is described in 20 Strategic Frameworks.

The main advantages of European funding are that:

  • It can provide approximately 50 per cent of a total project cost for up to three years
  • Existing funding, staff and volunteer time can be used as match funding to drawn down EU grant
  • It delivers on Government priorities and can help to demonstrate how your work fits with these
  • It is possible to trial innovative approaches
  • It may be possible to generate a surplus through contract delivery

The main disadvantages of European funding are that:

  • Processes are bureaucratic
  • There is often a long lead in time for projects to be implemented
  • Project ideas must fit with Government priorities

Useful resources