Millions of pounds in European grant aid for Cornwall is hanging in the balance with the deadlock over the EU budget in Brussels. In 1999 Cornwall was granted Objective One status, entitling the county to more than �300m in European grants.
The scheme ends next year and Cornwall is expected to benefit from a new scheme from 2007.
But that depends on a successful outcome to the talks in Brussels on the new EU budget.
Funding available
Prime Minister Tony Blair's proposals have already been rejected once by the other nations.
If they cannot reach agreement, the budget talks will be postponed until next year, under the Presidency of Austria.
The Austrians could have different ideas about spending priorities, which would mean uncertainty about the amount money Cornwall could receive in the future and a delay in getting it.
Councillor Andrew Mitchell, who holds the Economy portfolio on the county council, told the BBC he still had reservations about the UK government's attitude to Cornwall even if the budget is agreed.
However, if the EU talks fail, then the budget agreement could stretch for up to 12 months, which could prove problematic for development bodies in the county.
The Objective One programme makes about �100m of European funding available to the county a year. The current round of cash available is due to finish at the end of 2006.
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