I can see *some* potential
What a brain needs to grow into.. well - what I have here, powering my body and making these letters appear on the screen for you, is not only output - but input as well.
If they can set up a bunch of stem cells, add the correct inputs, then yeah, maybe, just maybe, they could make something that resembles a functioning part of the brain. Each cell in the brain is linked with many others, with areas involved with smell also being involved with memory, areas of movement also involved with balance, areas of speech also involved with auditory reception.
The brain is a highly complex organ, and while I doubt a fully functioning brain could be possible (i.e. one that they could plop into your head and you still function - arguments about whether it's "you" or not, aside), I can imagine that small portions might be able to be replicated to the extent where they could even replace damaged tissues. Could a brain-blind person be able to see again? Could a brain-deaf person be able to hear? I feel that this potential is there at least, and that it's well worth putting alot of money into.
Besides:
Cloning?
Translation:
"90m Euros for a laboratory in the Netherlands for research into cloning, and what have we seen? Nothing! What have they been busy with all this time?"