The Prime Minister has floated the idea of an agreement between different parts of the UK to protect regions that face cuts in European aid. The Welsh Government has warned of a £400 million cut in funding to west Wales and the valleys over the next seven years, following Friday's EU budget deal.
David Cameron told MPs that total aid to Britain is broadly unchanged at roughly £10 billion. That's because new 'transition' regions and even wealthy regions will also attract some funding, although west Wales and the valleys is the only part of the UK to remain one of the EU's poorest regions.
What we now need to do is to sit down as the United Kingdom and to work out how best to make sure that the money is fairly divided between Wales, Northern Ireland, Scotland and England. There are transition regions in England that are looking to benefit but I'm sure we can have fruitful discussions and come to a good conclusion.
The European Commission says it will be more flexible than in the past about how the money is allocated within each member state. It's suggested that the UK could increase the allocation to west Wales and the valleys by up to 2%, which would be about £30 million on the Welsh Government's figures.
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