Introduction
 

Cyprus joined the European Union in 2004. Since then, the EU has supported the island’s two communities as they work towards a final settlement to end decades of division.

To pave the way for the reunification of the island, one of the aims of the EU aid has been to bring the two communities closer together economically.

Much of the EU’s support to Cyprus therefore focuses on developing the economy of the island’s Turkish Cypriot community. From its introduction in 2006 to the end of 2023, the EU’s Aid Programme for the Turkish Cypriot community has provided around EUR 688 million in financial support.

The programme supports projects in areas including but not limited to agriculture, environment, infrastructure, civil society, community development, cultural heritage, education and telecommunications, as well as the development of the private sector, the labour market, crossings, traffic safety and energy. It also provides information about EU policy and encourages legislative alignment with the EU in line with the Acquis Communautaire.

 

Aid Programme funding for 2006-2023 according to objective

Total: EUR 688 Million

 

This support has achieved positive impacts in a range of different areas:

KEY SUCCESSES (2006-2023)

Developing and restructuring infrastructure:

  • 263 km of new water pipes were installed in the cities of Nicosia, Famagusta, Kyrenia, Morphou, Kioneli/Gönyeli, and Lefka/Lefke to prevent leaks and to provide high-quality drinking water, free from rust or asbestos fibres.
  • 125 km of sewage pipes were installed, replacing septic tanks that were prone to leaks and potential groundwater contamination.
  • The new 52 km sewerage network in Morphou has protected a large groundwater reserve that supplies water to most of the population of Cyprus.
  • EU TAIEX experts provide support with the development of frameworks and guidelines for managing and monitoring waste production. They bring a tangible contribution to facilitate bicommunal exchange of ideas and mutual support in view of achieving EU standards.
  • Three wastewater treatment plants were constructed, processing wastewater generated by 330,000 people every day. 10 air quality monitoring network stations were provided, forming an integrated network which measures air quality across the Turkish Cypriot community.
  • A community centre, worth EUR 1.1 million, was constructed in the Maronite village of Kormakitis/Kormacit to serve as a multicultural event venue for Cypriot communities. Opened in 2023, it hosts educational and youth activities, conferences, meetings, and cultural events.
  • A new shelter for survivors of domestic violence was constructed, providing a safe space for up to 12 women and their children. The shelter was part of a project that also included raising public awareness of domestic violence and developing a response mechanism with local bodies to support survivors of domestic violence.
    The project was financed with EUR 750,000 the largest grant ever awarded under the Aid Programme.

Promoting social and economic development:

EUR 40 million has been earmarked for the period of 2021- 2024 to support Turkish Cypriot producers in qualifying for the Protected Designation of Origin (PDO) label for Halloumi/Hellim, and in assisting the Turkish Cypriot community to reach compliance with EU food safety and animal health standards. This will allow trade of PDO-compliant Halloumi/Hellim from the Turkish community across the Green Line into the EU market.

This funding is in addition to EUR 35 million spent until 2020 to raise food safety and animal health standards in the dairy sector. Among other measures, this initiative includes improving milk quality and milk collection practices, registering all farmed ruminants, eradicating animal diseases affecting them, strengthening veterinary services, setting up a laboratory, upgrading farming operations, and adopting legal texts.

Trade across the Green Line 

Trade across the Green Line hit a record of
EUR 16 million in 2023, from
EUR 14,6 million in 2022 and
EUR 6.2 million in 2021.

The Commission invested strong efforts to increase Trade across the Green Line. It helped expand the products available for this trade, opened a One Stop Shop offering expert advice to traders, and encouraged Turkish Cypriot producers to make use of this economic opportunity.

The Commission’s priority in 2024 is to further boost the volume of Trade Across the Green Line and extend the range of eligible products. Interest among Turkish Cypriot producers in complying with EU standards and participating in Trade Across the Green Line has surged, also due to TAIEX support. The EU created a mechanism to provide information on EU standards, as well as support and guide Turkish Cypriot producers to improve product quality and health standards.

Halloumi / Hellim

In April 2021, the Commission registered Halloumi/Hellim as a Protected Designation of Origin (PDO) of Cyprus. By the end of 2023, three Turkish Cypriot cheese producers had been certified as compliant with this PDO scheme. The sale of Turkish Cypriot-produced PDO-compliant Halloumi/ Hellim into the EU single market will be possible once EU animal health and food safety requirements are met in the Turkish Cypriot community. The 2023 Annual Action Programme offers significant EU support to achieve this goal and to assist Turkish Cypriots in producing PDO- compliant Halloumi/Hellim.


In addition to this, the TAIEX instrument supports Turkish Cypriot beneficiaries in meeting EU standards for food safety and animal health. EU experts contribute to developing work plans on animal health priorities and setting up the necessary legal framework for an animal origin food safety control mechanism.

 

SMEs (Small and Medium-sized Enterprises)

  • Overall, almost EUR 60 million has been invested since 2006 to support small and medium-sized enterprises, which dominate the Turkish Cypriot economy.
  • This includes more than 160 grants worth EUR 18 million awarded to SMEs and start-ups since 2008. These funds aim to support innovation and competitiveness, the green and digital transitions, and compliance with EU standards. The latest grants amount to an average of EUR 185,000.
  • Between 2020 and 2022, EUR 10 million was mobilised for a grant scheme assisting 2,400 businesses in managing the economic impact of the Covid-19 crisis. Among them, close to 100 larger SMEs were awarded grants of up to EUR 60,000, along with in-kind support to foster innovation, generate jobs, and growth.
  • From 2019 to 2022, businesses and first- time entrepreneurs were offered over 4,000 hours of consultancy, assessments, one-to- one mentoring, and training workshops to encourage growth and innovation. The EU Into Business programme reached more than 1,150 entrepreneurs, culminating in the creation of 36 new businesses. The EU incubator Hive was launched, driving high- value start-ups.
  • Every year, up to 16 innovative start-ups from both communities are trained to achieve commercial success and to present their ideas convincingly at competitions. The winners have the opportunity to attend “Slush”, the world’s leading start-up event in Helsinki. This initiative is a joint project with the Embassy of Finland in Cyprus.
  • Since 2007, the education sector has received long-term support worth almost EUR 24 million. This funding has been provided for curricular reform, continuous professional development, and the modernisation of vocational education and training to adapt to labour market needs.
  • EU TAIEX support for social policy focuses on improving services for people with disabilities, by familiarising local bodies with best practices from EU Member States, as well as providing harmonised frameworks and guidelines in line with EU standards for facilities designed for adults and children with disabilities.
  • Science lab equipment has been delivered to 48 primary schools and 46 secondary schools, along with a “mobile science lab” in a bus, to enable school children and teachers to conduct experiments in biology, chemistry, and physics.
    The science labs for primary schools are worth EUR 18,000 each and the labs for secondary schools are worth EUR 83,000.
  • EUR 35 million was invested in rural development between 2008 and 2022. Through a series of grant schemes, training rounds, and the agricultural and agro-processing sectors have been modernised and developed, ensuring sustainable resource use and environmental protection. Consequently, living conditions for the rural community have improved.
  • EUR 5 million in Covid-related medical support was allocated in 2020 for emergency medical equipment and supplies, including vital testing equipment, ventilators, and personal protective equipment, as well as expert advice on response mechanisms, vaccination, and testing strategies.

 

Supporting reconciliation, confidence-building measures, and civil society, bringing the Turkish Cypriot community closer to the EU

  • More than 2,150 scholarships have been awarded to Turkish Cypriots, totaling over EUR 38 million, to finance university studies or internships in EU member states. The recipients are currently creating a network to maintain contact and actively contribute to the Turkish Cypriot community.
  • The EU Scholarship Programme for Cypriot youth - Turkish Cypriots and Greek Cypriots enables them to complete together a two- year International Baccalaureate course at a United World College (UWC). Launched in 2019, the programme has so far provided scholarships to 46 young individuals.
  • UWC also organises short leadership courses and other youth engagement activities in Cyprus, with which it has reached over 1,000 Cypriot and international young people, including a broad circle of parents, educators, and other collaborators on the island, fostering peace and reconciliation amongst the communities.
  • Between 2011 and 2023, the EU provided close to EUR 27.5 million to the bi- communal Technical Committee on Cultural Heritage. This support covered around 80% of the committee’s budget and facilitated the restoration, conservation, and structural protection of more than 150 cultural heritage sites across Cyprus.
  • The committee currently receives an annual contribution of EUR 2.5 million from the EU.
  •  From 2006 to 2022, the EU allocated close to EUR 38.5 million to the bi-communal Committee on Missing Persons (CMP) in Cyprus, covering around 80% of its budget. This funding helped the CMP to recover and identify the remains of 1,047 out of 2,002 missing persons, allowing their families to organise dignified burials. In recent years, the CMP has received annual EU support of EUR 2.6 million.
  • TAIEX assistance supports alignment to EU acquis and standards in various sectors, including free movement of goods and capital, product and food safety, animal health, statistics, environment and agriculture, energy and infrastructure, as well as intellectual property rights. This contributes to improving the environment for consumers and ensures the protection of health of all citizens, fosters innovation and economic growth, and facilitates the development of principles and procedures to prevent harmful financial practices.
  • Since 2019, the “support facility”, with an allocation of EUR 2 million, has funded over 10 projects led by other bi-communal technical committees. These projects range from feasibility and research studies to workshops and exhibitions.
  • An EU Infopoint was established in 2015 in Nicosia to inform the Turkish Cypriot community about EU policies and the Aid Programme via workshops, events, and social media outreach.
  • Turkish Cypriot CSOs have also benefitted from 130 training sessions aimed at enhancing their skills concerning strategy, advocacy, fundraising, and communication.
  • Over EUR 20 million in grants have been awarded to 150 civil society organisations (CSOs) active in the Turkish Cypriot community. Their projects cover a variety of issues, including human rights, trafficking of human beings, freedom of expression, confidence-building measures, trust and reconciliation, environmental protection, social inclusion, culture, and sports.
  • Since 2006, over 260 experts from EU member states have been mobilised, with a budget of EUR 40 million, to assist the Turkish Cypriot community in implementing EU standards, and to support Trade across the Green Line by conducting inspections of certain traded goods.