Carwyn Jones: Leaving EU would be 'catastrophic' for Wales

First Minister Carwyn Jones said many companies currently use Wales as their European base

A referendum vote to leave the EU would be "catastrophic" for Wales, the first minister said.

Speaking on BBC Radio Wales's Sunday Supplement, Carwyn Jones said core industries like farming would collapse and companies would relocate from Wales.

He said: "First of all we'd lose money financially. We get billions in terms of European funding.

"There's no way farming could continue without European funding."

Mr Jones added that there were "many different companies in Wales who are here because it's their European base".

"If we can't act as their European base they'll go elsewhere, they'll go to Ireland or other countries."

'Real dangers'

The European Union Referendum Bill was unveiled in the Queen's Speech. It is currently being debated by MPs before moving to the House of Lords.

Mr Jones said he anticipated being on "the same side as Plaid Cymru" on the issue.

"I think there are some real dangers for the Conservatives, this is the issue which they fight each other about and I think we'll see more of that over the next few months.

"It was the issue that destroyed John Major, and I think [Prime Minister David] Cameron is desperate it doesn't become the issue that destroys him and his government."

Mr Jones said the other issue was not knowing what Mr Cameron was going to put on the table in terms of a renegotiated settlement for the UK, adding: "It may contain some things that politically I wouldn't support."

He said: "I've no doubt that David Cameron wants to see the UK remain a member of the EU, but we have to see what deal he comes up with.

"I agree with him that the EU needs to be reformed, the UK needs to be reformed as does the EU, that doesn't mean the concept is flawed."