The Objective One grant aims to regenerate the valleys

Euro MP Glenys Kinnock revealed on Monday that she had received confirmation of the EU's intention to continue providing Objective One aid until 2013.

The current Objective One package - worth �1.2bn - comes to an end in three years' time.

Wales is eligible for this funding under current criteria - which states that Objective One help can go to any region where the GDP is less than 75% of the EU average.

Money is being provided over seven years to aid the regeneration of the economic blackspots of west Wales, the south Wales valleys and areas of north west Wales.

It had been feared that with expansion of the EU and poorer eastern and central European countries joining, Wales might lose out.

This is hopeful news Wales MEP Glenys Kinnock

But on Monday, Mrs Kinnock said she had been told funding would continue.

"After a meeting with a member of Commissioner Barnier's Cabinet, I can confirm that it is the European Commission's intention to propose an extension of the funding programme in Wales," she said.

Current proposals, she said, suggested that up to 90% of Objective One funding could continue to be allocated until 2013.

"At this early stage of negotiations, this is hopeful news," she added.

"Whilst we all recognise that significant funding programmes are going to be required in the 10 new member states, it is right that we offer a long-term commitment to the poorer areas of the current EU.

"The levels of poverty and disadvantage in Wales will require a very focussed approach over a number of years. It is apparent that the European Commission has recognised that fact.

"While there is still some way to go before the specific details future of regional policy is finalised, I will continue to argue the case for West Wales and the valleys."

Meanwhile, the Welsh Assembly Government has indicated it is looking at ways of speeding up the way Objective One money is given to the poorest parts of Wales.

There has been much criticism about the way funds have been spent and of delays in allocating funds.

In January 2002, a progress report from the Welsh European Funding Office revealed �60m less had been channelled to projects than originally promised.

Last December, a committee of AMs found that applicants for money have to go through 11 separate stages and wait more than three months on average for approval.

Computers blamed

The committee warned that Wales could lose funds if money was not committed quickly enough.

And in January of this year, a computer glitch at the Welsh assembly was blamed for figures which showed that the Objective One programme had created just 44 jobs in the two years of the project so far.

Welsh Minister for Economic Development and Transport, Andrew Davies, claimed the true figure was 6,000 jobs created.

Mr Davies has promised to speed up the delivery of the second half of the Objective One funding.

The Objective One Programme Monitoring Committee (PMC) will meet this week to look at ways to get the money to groups who successfully apply for it more quickly.

'Momentum'

Mr Davies said: "The mid-term evaluation process has given us the ideal opportunity to look at what we have achieved from Structural Funds and identify new ways of making European funding more responsive to the needs of applicants.

"Now the scheme is up and running - and creating thousands of new opportunities throughout Wales - we can build on our delivery approach to ensure that the momentum of quality projects coming forward to access funds continues until the end of the programming period.

"The proposals for change should lead to a reduction in the overall time taken to decide on project applications."

To date, Objective One has seen more than �465 million committed to around 770 projects across west Wales and the valleys.

Areas of Wales have been eligible for Objective One money for more than two years.

The fund is only paid to the poorest parts of the European Union.