EU AID PROGRAMME FOR THE TURKISH CYPRIOT COMMUNITY

PRESS RELEASE

European Commission Initiates an Emergency Economic Support Package worth EUR 11 million

Nicosia, 13 May 2020

The European Commission is initiating a series of new economic measures to help address the broader socio-economic impact of the Covid-19 pandemic in the Turkish Cypriot community.  This package includes support for structural business reforms, grants for micro businesses and industry, and direct investments for energy efficiency measures to stimulate green growth and jobs.  The first activities should commence in July 2020. 

The emergency economic support measures aim to help avoid a deep and protracted socio-economic crisis in the Turkish Cypriot community.  Subject to the adoption of the financing decisions, the measures will be implemented through grants to small businesses, structural business reform and job creation through investment in energy efficiency infrastructure.  The proposed Emergency Economic Support Package comprises the following elements: 

• Grant funding for small businesses with the aim to help “kick-start” the economy and prevent closure of otherwise viable companies.  The proposed budget reallocation is EUR 3 million for micro businesses and EUR 3.5 million for the small industrial companies. 

• The promotion of social and economic development through economic monitoring and studies implemented by the World Bank will continue to support a recovery plan with targeted assistance on improving the business environment, with a strong green energy component, as a response to the economic crisis caused by the outbreak of the Covid-19 pandemic.  The proposed budget reallocation for this component is EUR 1 million. 

• The current flagship project, “Energy Efficient Schools,” will be complemented by a comprehensive programme to promote development towards a greener economy and job creation by upskilling the local labour force and developing local innovative and sustainable solutions.  The proposed budget reallocation for this component is EUR 3.6 million. 

Background: 

The European Commission has been cooperating with the World Bank since 2006.  The recent work focuses on 'Economic Analysis Programme for Growth and Sustainable Development in the Turkish Cypriot community' with a view to foster the economic integration and convergence within Cyprus in view of its reunification. 

“Energy Efficient Schools” project includes an assessment of the energy efficiency situation of selected schools in the Turkish Cypriot community. The project aims to draw up an action plan of energy efficiency measures for the selected schools.  It also aims to prepare the community to implement EU rules in the area of energy efficiency to contribute to economic and social development by upskilling the existing and future labour force, creating jobs, improving the capacities of labour-intensive sectors.