Planned racetrack in Wales scuppered by EU state aid law

The future of a proposed motorsport venue in South Wales was called into question after the Welsh government concluded that it would be unable to underwrite the site’s construction costs.

The Circuit of Wales is a planned motorsport venue near the town of Ebbw Vale in South Wales, which promised to bring between 4,000 and 6,000 new jobs over a decade. However, after conflicting legal advice, the Welsh government’s Minister for Business, Edwina Hart, decided that public authorities would be unable to underwrite the £357 million investment made by the project’s principle backer Aviva, citing an 'unacceptable risk' amid concerns that the move could be in breach of EU law on state aid.

Wales Online, 06.04.16: Circuit of Wales project in tatters after Welsh Government confirms it cannot provide a guarantee for £357 million http://www.walesonline.co.uk/business/business-news/circuit-wales-project-tatters-after-11148776

BBC News, 09.04.16: Circuit of Wales location questioned by motor race group http://www.bbc.co.uk/news/uk-wales-south-east-wales-36005494

BBC News, 06.04.16: Minister 'cannot underwrite £357m Circuit of Wales track' http://www.bbc.co.uk/news/uk-wales-35981794

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