Effect of the UK leaving the EU on infrastructure in Wales

This debate pack was prepared ahead of a debate in the House of Commons on the 17 January 2017 on the effect of the United Kingdom leaving the EU on infrastructure in Wales. The subject for debate was chosen by Stephen Doughty, MP.

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 were:

+ A reduction in the amount of funding available for infrastructure projects, if EU funding was 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

ESO: Background information: The EU Referendum, 23 June 2016. The United Kingdom and the European Union. The results - Wales - Statement by the First Minister: EU Referendum result http://www.europeansources.info/record/the-eu-referendum-23-june-2016-the-united-kingdom-and-the-european-union-the-results-wales-statement-by-the-first-minister-eu-referendum-result/

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