Member Article

Europe is good for the North East

Euro-scepticism seems to be in vogue. This was highlighted starkly by the recent European elections.

In two of the EU’s biggest countries – France and the UK – anti-EU, anti-immigration parties came top. Meanwhile, in struggling Greece, it was a Euro-sceptic party of the left – Syriza – which won.

Should Britain be more involved in the EU or less? It’s a debate which has raged on for months, with political big-hitters weighing in with their opinions.

There is some credence to the argument that a departure from the EU would isolate the country somewhat. It could mean that the North East of England misses out on future funding streams that are vital for the continued resurgence of the regional economy.

Five years ago North East Finance was successful in securing European cash that forms the bedrock of the Finance for Business North East Fund. More than £54m came from the European Regional Development Fund (ERDF) and a £62.5m loan was secured from the European Investment Bank.

So far, FFBNE has been a huge success in terms of job creation and corporate and economic growth. Since its launch in 2010, the programme has provided almost £100m of debt and equity funding to over 620 SMEs, creating or safeguarding more than 3,500 jobs. In addition, the programme has helped to secure more than £115m of private sector cash to support deals from venture capital firms, business angels and other investors – taking the overall investment figure well over the £200m mark.

None of this would have happened without the backing of European cash, which probably wouldn’t have been secured if Britain had not been a member of the EU. This would have had disastrous consequences for the North East of England at a time when the region was struggling to make ends meet following a damaging recession. Funds such as FFBNE are vital for the long-term prosperity of the North East economy because they attract inward investment and create wealth and jobs.

For better or for worse, Britain needs Europe. More specifically, the North East needs Europe. We shouldn’t be solely reliant on funding from outside sources but, as FFBNE has demonstrated ably, European cash can help our region to become more financially independent by enabling companies to generate sustainable growth, jobs and wealth.

For that, we should be very grateful.

By Jason Hobbs, finance director at North East Finance

This was posted in Bdaily's Members' News section by Colin Garcia .