EAST Lancs Tory MEPs claim the European funding system to help businesses and organisations is "overly-bureaucratic" and "inefficient".
The group of Conservative MEPs said research they commissioned shows millions of pounds worth of funding to help regenerate the region is continually hampered by red tape and delays.
The claims have been labelled as "cobblers" by Gary Titley, leader of Labour's MEPs in Europe.
And Terry Wynn, Labour MEP who is chairman of the budget committee which oversees the EU's £70bn budget, said some bureaucracy is needed to ensure public money is guided towards the correct sources. There are hundreds of ways for charities, community organisations and businesses to apply to Europe for funding.
Funding from the European Commission in Brussels is then matched by the organisations applying for funds or by local councils, such as Lancashire County Council, donating public money. Tories said the cash is getting bogged down.
Sir Robert Atkins, MEP for the North West said: "This latest research proves what I have been saying for some time that these funds are being administered in an overly-bureaucratic and complex manner."
But these claims were dismissed by Labour. Mr Titley said: "These claims are cobblers and are not backed up by any hard evidence."
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