The country profile below has been structured based on the Partnership Agreement approved by the European Commission on 8 July 2021 aiming to invest a total of more than €1 billion in the country between 2021 and 2027.
The Partnership Agreement covers the Cohesion Policy funds (ERDF; ESF+, the Cohesion Fund) including the JTF and the EMFAF.
The Partnership Agreement paves the way for the implementation of these investments on the ground. It covers:
It also establishes the eligibility and implementation of the Just Transition Fund in the areas most negatively impacted by the climate transition.
Moreover, the Partnership Agreement reflects Cyprus’s strong commitment to the coordinated use of the Cohesion Policy funds with the Recovery and Resilience Facility.
The ESF+ will invest €222 million in labour market policies and skills development and strengthen social cohesion in the country.
Investments will target far-reaching reforms and actions aimed at reinforcing youth support, improving the labour market relevance of education and training, restructuring social welfare services and combatting social exclusion with a significant budget allocation of €87 million for the latter. This will contribute to achieve Cyprus’s 2030 targets under the European Pillar of Social Rights, namely, to increase participation in employment (from 74.9% to 80%) and in annual adult learning (from 44.8% to 61%) and to curb poverty (10 000 fewer people).
Key initiatives will support the youth employability, the modernisation of public employment services and the development of technical vocational education and training. For example, support to young people will be extended through the ALMA innovative initiative (Aim Learn Master Achieve) and the individual learning accounts for young NEETs with a budget allocation of €5 million.
These measures will target 3440 people looking for employment while 1000 people will complete training classes. In addition, almost 40 schools will benefit from education and integration actions. For the most vulnerable, food aid will be given to 144,000 children in need.
Cyprus is set to receive an estimated €1 billion in Recovery and Resilience Facility grants and €0.2 billion in Recovery and Resilience Facility loans, with the possibility of requesting more RRF loans in the future.
Other EU funds for Cyprus will be the €112 million available in 2021 under REACT-EU and €92 million from the Just Transition Fund. Also, Cyprus will also receive €959 million in Cohesion Policy allocations from the latest long-term EU budget, as well as just over €366 million in direct payments from the European Agricultural Guarantee Fund (EAGF). There will also be €172 million available through the European Agricultural Fund for Rural Development.
Furthermore, the European Commission has also disbursed €603 million in financial support to Cyprus under the SURE instrument. The support was provided in the form of loans granted on favourable terms and will assist Cyprus in covering the costs related to its Temporary COVID-19 Wage Subsidy Scheme.