Friday, April 26, 2013


The European Commission will redirect €21 million of Regional Funds

The Cypriot (L) and European Union (R) flags | AFP PHOTO / PATRICK BAZ

Redirection of EU funds for Cyprus

EU funds worth of €21 million will be redirected in response to Cyprus short-term needs. According to the European Commission, the funds are coming from lesser performing regional policy areas and will be redirected to where the EU funds are likely to have more impact for growth and jobs in the shorter term.
The Commission highlights that the EU funds proposal does not modify the total programme allocation, clarifying the total 2007-2013 cohesion policy funding for Cyprus will remain unchanged. The total funding is more than €600 million.
European Commissioner for Regional Policy Johannes Hahn commented. “Today’s decision will help Cyprus to weather this crisis and tackle its economic problems by using EU regional funds in the most effective way possible- in areas that will contribute to the countries efforts to boost growth and competitiveness, particularly that of its SMEs. We are working closely with the Cyprus authorities and are in continuous discussion on how EU regional funds can support the country's efforts to emerge out of this crisis.”
The main modifications in the redirection of the EU funds are from areas which didn’t perform so well in Cyprus. In specific, €21 million will be transferred from the area “Knowledge Society and Innovation” to the areas of “Productive Environment” and “Regeneration of Urban and rural areas.”
In addition, more EU funds, worth €9 million will be invested in the promotion of promising additional projects mainly in the field of renewable energy and innovation within the “Knowledge Society and Innovation” area.
Last, priority will be given to some Major Projects relevant with the development of the Sewerage System of the Kokkinochoria Complex and the Vertical Road that connects the Limassol Port to the Limassol-Paphos Highway.
Judicial Investigation
In regard with the judicial investigation about the Cypriot crisis, the former minister of economy Harilaos Stavrakis testified today. He said that the explosion in the Evangelos Florakis Naval Base in 2011, causing the death of 13 people, and the great losses of the Cypriot banks were the reasons behind the crisis.
Stavrakis acknowledged the fact that he wasn’t aware about the extension of the economic damage made by the base explosion and the bank losses. In addition he underlined that the macroeconomic data, during his time in power were more or less the same with the rest of the Eurozone Member States.
When he was questioned about the problem of Cyprus to attract loans from the international markets back in 2011, the former minister replied that it was because of the enormous size of the banking sector in Cyprus and the exposure of the Cypriot financial system in the Greek market.    EUROPE ON LINE

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