Iolo ap Dafydd BBC Wales's Europe Correspondent

The row has escalated over the Welsh Assembly Government decision to pull out of the Wales European Centre and concentrate on strengthening their own office in the Belgian capital.

First Minister Rhodri Morgan said he wanted the assembly to play a greater role at the heart of Europe.

The move comes as politicians here and in Brussels are questioning the role of the centre - effectively Wales's only "embassy".

When First Minister Rhodri Morgan announced last week that that the assembly's annual �189,000 contribution to WEC's almost �1m budget was to end, many were caught unawares. Or were they?

While there seems to be a general surprise at the speed and timing of Mr Morgan's announcement regarding the Wales European Centre's future, it could be argued that the writing was on the wall.

Some in the assembly administration have questioned the "burying" of such news until the afternoon and during the Easter holidays.

The Welsh Local Government Association (WLGA) are openly debating their 21% contribution to WEC (also �189,000) as some local authorities question the return on their investment.

Rhodri Morgan: Surprise announcement?

Pressure could be brought to bear on the Welsh Development Agency (WDA) share of 30% of WEC's funding.

The chances for survival are slim if the political muscle of Welsh Assembly Government push the WDA to pull the plug as well.

Assembly Members Nick Bourne and Ieuan Wyn Jones, both on WEC's board, claim that they knew nothing of the desire to close WEC and put the assembly in charge of the Brussels office.

There had been one-to-one discreet meetings in corridors, but no formal official meetings in the assembly committees to discuss the arguments for or against evolving the assembly's office in Belgium at WEC's expense.

According to the Welsh Conservative leader Nick Bourne, this is indicative of the present government to be impulsive and not to take measured decisions.

Plaid Cymru's Ieuan Wyn Jones has also condemned the first minister's decision to withdraw funds by the end of April 2003.

Both party leaders, however, agree that changes are needed in WEC's administration.

Assembly taking charge in Europe

Mr Bourne also pointed out Mr Morgan seemed unaware, of Sir John Gray's review of WEC, when he was approached for a private chat with Morgan on the matter before Easter.

Mr Jones thinks the first minister did know about Sir John's forthcoming report. A spokesperson for Rhodri Morgan has confirmed this.

So why now, weeks after a very public endorsement of the Wales European Centre's work in Brussels, does the first minister's office decide enough is enough?

Sir John Gray - a Welsh eminent former Ambassador to Belgium - told me he was surprised with the timing of Morgan's announcement and has requested a meeting with him.

Taxpayers' money

With a current staff of 12, the possibilities of job losses is having a demoralising effect on WEC full-time staff.

However, with the assembly proposing to double their Brussels based staff from three to six or even seven, a definition of work boundaries needs to be sorted out if a seamless transition of Welsh identity is to take place in the European capital.

With such an upheaval on the cards, why did WEC advertise and interview for two vacant posts recently?

Was the director aware of the Welsh Assembly Government's designs in demoting WEC?

With seven years lease still on WEC's Rue Josef expensively modified office, staff expansion and a newly-promoted director, the timing is extremely odd, and extravagant with taxpayers' money.

The assembly's spokesman in Brussels said the decision had been taken after a lengthy year long review process.

He hopes the changes will be quick, with talks with all parties due over the coming weeks - to limit the damage to Wales's reputation.

There are many answered questions.

Will there be job losses in Brussels? Will the WLGA and the 22 local authorities in Wales, and the WDA refuse to fund WEC as well? Is this a gaffe by Mr Morgan's office in Cardiff? And how speedily to avoid any political and international embarrassment to Wales, and any possible litigation, can this debacle be smoothly overcome?

Stay tuned...