Sturgeon hopeful of EU funds deal

Feb 20 2013

Deputy First Minister Nicola Sturgeon is "optimistic" a deal can be done over Scotland's share of key European funds.

The Scottish Government fears the country's share of European Structural Funds could fall by more than 30%.

In cash terms that could see Scotland receive around 300 million euros (£261m) less for the period 2014-20.

Ms Sturgeon told Holyrood that Michael Fallon, the UK minister responsible for Structural Funds, had agreed that "officials will work together to identify alternative allocation methodologies".

She said she was "optimistic" that an agreement could be reached on the funding which would be "far more beneficial to Scotland".

Ms Sturgeon told BBC Radio Scotland's Good Morning Scotland: "I am very intent on working constructively with both the UK Government and the devolved administrations to try to get a more equitable outcome for Scotland. I know Wales and Northern Ireland are wanting to work in that way as well."

Programmes funded with Structural Funds in Scotland between 2007 and 2013 were worth 839 million euros (£729m), and helped create more than 30,000 new jobs across the country.

While the figures have not yet been finalised, Ms Sturgeon said Scotland, Wales and Northern Ireland could all face a cut in the cash they receive.

She stated: "We're looking at a situation where we could be a looking at more than a 30% reduction, with Wales and Northern Ireland looking at significant net reductions as well and England looking at a slight increase." Ms Sturgeon stressed the need to ensure the "allocation within the UK is as equitable as possible".

With talks due to take place on the issue, she said: "I am at this stage optimistic we can have that constructive discussion and reach an outcome that is far more beneficial to Scotland than the one we could be looking at."