AROUND half a billion pounds is set to be ploughed into Merseyside in a proposed European investment package aimed at kick-starting the region’s stagnated economic growth.

Brussels’s £450m injection over six years would target “priority areas” of unemployment, poverty and support for small and medium-sized enterprises (SMEs).

Liverpool itself would also benefit from a share of a £13bn “cities” pot for continued urban development, a figure set to run into tens of millions.

Europe’s draft Cohesion Policy – announced this week and to run from 2014 to 2020 – would also see £18bn shared in bonus payments to regions that meet strict funding criteria.

City councillor Flo Clucas, a leader in the EU’s Committee of the Regions (CoR) – an assembly of local and regional representatives – said the funding was “critical” for Merseyside.

She said: “Given the state of the economy, this funding is really the only game in town.

“The national government isn’t going to have the cash, local government isn’t going to have the cash, so if we are to enhance the offer that we have and build new facilities, jobs and growth in Merseyside, this is our only real opportunity.

“It will be 12 to 18 months before a final decision is made but the clear message from the CoR is that investment is key to growth. This package would make an enormous difference to Merseyside as a whole. It is a fantastic platform from which we can build on what we have.”