BUSINESS leaders in Liverpool have given a cautious welcome to the news that the city region could be in line for another Euro-cash injection.

The Daily Post revealed yesterday that the European Commission has started planning Europe’s latest round of regional funding, to run from 2013.

It was thought that most of the cash would go to the poorer regions of Eastern Europe, but European Commissioner for regional policy Johannes Hahn said regions including Merseyside could still benefit.

Liverpool city region has received more than £2bn in EU funds since 1994 and, with Government cuts looming, more aid would help ease the pain.

However, Frank McKenna, chairman of lobby group Downtown Liverpool In Business, said he could see both upsides and downsides.

“Given the likely severity of the cuts, it could be a timely boost,” he said. “However, my issue with the way money was spent in the past was that there was a tendency to pursue projects that were likely to attract funding rather than those that would boost the economy.

“I have seen a shift in attitudes. There has been a realisation that we are going to get a less money and this has energised the private sector.