We now have a once- in-a-generation opportunity to transform our economy

First Secretary Rhodri Morgan

It will pave the way for approval, in principle, later this month for the first Objective One projects.

First Secretary Rhodri Morgan has described it as "excellent news for Wales".

He said: "We have successfully overcome the last hurdle and our Objective One plans have been given the final official endorsement by Europe.

"This means we can put our strategy to kick-start the economy of west Wales and the valleys into action immediately."

Mr Morgan said the first projects to receive Objective One funding would be announced before the end of the month.

'A major difference"

"The excellent Spending Review settlement announced last week means the resources are now available to ensure that no worthwhile Objective One project will be held back by lack of funds

"We now have a once-in-a-generation opportunity to transform our economy and make a major difference to the lives of people in west Wales and the Valleys," added Mr Morgan.

The European Commission's official approval means that the committee supervising the Objective One programme can now operate on an official footing for the first time.