Dafydd Wigley AM: 'Empty promises'

He said the extra money announced for European Objective One projects was "above and beyond" the Barnett formula - which ensures that Wales gets a certain proportion of spending increases in England.

The message that existing budgets are safe from plunder was reinforced by Tony Blair in an article for the Welsh Mirror newspaper which said he has delivered on his promise not to let Wales down.

But in the assembly debating chamber, Labour will come under heavy fire from the opposition.

We haven't been able to identify a single penny yet of matched funding

Plaid Cymru's Ieuan Wyn Jones

They say Wales is still hundreds of millions of pound short of what it needs.

Ynys Mon AM Ieuan Wyn Jones said Wales had lost out totally on the European funds for its first year and only a proportion will be available for the second, third and fourth years.

"Secondly, we haven't been able to identify a single penny yet of matched funding," he said.

"So what is clear from that settlement announced yesterday is that we're going to have to raid other budgets in order to provide it."

Plaid has claimed the Chancellor's announced �421m - over the next three years to cover the total costs of European projects - is �350m less than required to use European funding to its full potential.

"After months of empty promises and soundbites, the Chancellor has not given the people of Wales the opportunity to grasp a chance in a lifetime," said Plaid president Dafydd Wigley.