In the context of the current economic crises in Cyprus, 21 million euro available in the framework of priorities of the EU regional funds allocated to Cyprus will be redirected to the growth and jobs objective. The Commission has decided to implement this reprogramming plan to permit that funds allocated to less performing regional policy areas will be redirected towards areas having more impact for growth and jobs. The aim is therefore to encourage investments in favour of small and medium sized business and of the employment of young people.
Some €11m worth of funds will be reallocated to build on projects for SMEs (€8.5m) and for measures to promote youth entrepreneurship (€2.5m). A further €10m will be moved to projects for the regeneration of urban and rural areas.
The decision to shift funds from one area to another is mainly due to the deterioration of socio-economic conditions in Cyprus in recent months, but it also aims to compensate for the slower progress of implementation in some areas of investment.
Background
The main modifications are:
– Transfer of €21m from the area “Knowledge Society and Innovation” to the areas of “Productive Environment” and “Regeneration of Urban and rural areas”.
– Promotion of promising additional projects mainly in the field of renewable energy and innovation (worth €9m) within the “Knowledge Society and Innovation” area.
– Priority given to some Major Projects so as to include the Sewerage System of the Kokkinochoria Complex and the Vertical Road that connects the Limassol Port to the Limassol-Paphos Highway where funds could be used more quickly and effectively
“Major projects” are ones of which the total investment (VAT included) is above €50 million and thus subject to a specific decision by the European Commission, whereas other types of projects are approved at national or regional levels.
This proposal does not modify the total programme allocation, the EU contribution rate nor the annual budgetary commitments of the programme. Cyprus has been allocated more than €600 million in total cohesion policy funding from 2007-2013.
