BILLIONS of pounds of European investment have failed to boost the Welsh economy, according to latest EU figures.

The European Union's Statistical Office has revealed gross domestic product fell by two per cent in 2008.

Peter Black, Liberal Democrat Assembly Member for South Wales West, said the Labour and Plaid government had failed the Welsh economy.

He said: "They have failed to invest in new industries and new skills that will attract high quality jobs to Wales.

"If we do not start to grow the private sector then Wales will remain at the bottom of the league in terms of its economic performance."

Ian Price, assistant regional director of the CBI South West, said the latest EU figures were very disappointing.

He said: "It is a pity that we are falling further behind.

"Too much money is being administered by the public sector.

"Not enough consideration is being given to the private sector.

"A lot of public sector projects are unsustainable." Swansea Council leader Chris Holley said: "We are now behind countries like Montserrat.

"European money is part of the problem. Objective One was more about capacity building, but capacity for what?

Strategic

"The second lot was supposed to be more strategic, but what have we seen from that?

"I've written letters to the government, which had been leaked on purpose, calling for help, and it's time they did because Wales is lagging behind the rest of the world.

"It's time our AMs and MPs stepped up." An Assembly Government spokesman said its focus was on growing the private sector and encouraging entrepreneurship.

He said: "These figures are a mixed bag for Wales.

"They show the need for Wales to continue to work to match the prosperity in other parts of Europe and the ongoing role of European funding in supporting our economy.

"However, it must be remembered that Wales is maintaining an employment level above its historical average, with the level up 123,000 since the creation of the Assembly."

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