Since 2004, EU membership and access to EU structural funds have provided a major boost to the economy.

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Mr Blair is expected to try to secure their approval by lowering the level of matching grants they must supply to qualify for EU structural funds.

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In the second session MSPs quizzed Dr Jeff Howarth from the University of Highlands and Islands, Graeme Hyslop from Langside College and Derek Banks from Coatbridge College on EU Structural Funds.

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EU's structural funds will also meet tough opposition.

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Mr Davies stressed that all EU programmes, which include the Structural Funds, Rural Development and Fisheries programmes, will work together to deliver sustainable benefits for people, businesses and communities across Wales.

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"As a net beneficiary of EU membership, parts of Wales receive structural funds for all-important fields such as agriculture and education - funding which is vital for some of our poorest communities, " she said.

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In particular, they will work to secure reform of the Common Agricultural Policy and Structural and Cohesion Funds and to ensure that the EU policies and institutions meet the concerns of our citizens.

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Labour's deputy minister for European programmes, Alun Davies, said Wales had benefited from the EU's common agricultural policy (Cap) payments to farmers and structural funds to improve the economy.

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