Prime Minister David Cameron said the UK leaving the European Union (EU) would result "in an economic shock" for the country.

A vote to leave the politico-economic union would terminate Britain's membership of the European Investment Bank (EIB).

With more than £16 billion invested in UK infrastructure projects over the past three years, the PM said losing EIB's funding would "put the brakes" on major UK infrastructure schemes.

Over a week ago, the EIB announced £280 million in funding for the expansion of facilities at the University College London, and also £700m of finance for the Thames Tideway Tunnel project.


Mr Cameron said: "We know leaving the EU would result in an economic shock in the UK, after which we would be permanently poorer. We also know businesses would lose access to the single market of over 500 million people, and the contraction of our economy would mean less money for public services.

"But something less remarked upon is the devastating impact on future infrastructure investment of our expulsion from the European Investment Bank.

"Vital projects across every region of the UK have been financed by the EIB. These make a huge difference locally, nationally, and sometimes globally – from the purchase of 65 new Super Express Trains for the East Coast Main Line; to investment in development of emission control technologies in Hertfordshire; to extension of the M8 motorway between Edinburgh and Glasgow; to the expansion of Oxford University's research and teaching facilities.

"Not only would leaving the EU see us wave goodbye to this crucial funding – but, with a smaller economy hit by new trading barriers and job losses, it's unlikely we'd be able to find that money from alternative sources."

(LM/MH)