Councillor Patrick Clarke said: “I am very saddened to hear that this funding has been withdrawn.
“Narrow Water Bridge has the potential to change the economic future of the Down area, opening up vast tourism opportunities and creating short term and long term jobs.
“Earlier this year, construction on the bridge came very close to starting and this latest blow will serve as more disappointment to the surrounding community.
“We need assurances that this project will be kept on the table. While the EU funding has fallen through, other potential investors might still come forward as the bridge still has great potential.”