Cyprus has not used EU Cohesion Funds

Data from the European Commission show that out of a total of EUR 53.9 mln allocated to Cyprus in Cohesion Funds for the period 2004-06, Cyprus managed to absorb absolutely nothing in 2004, while out of a total allocation of EUR 59.5 mln in Structural Funds, Cyprus has managed to absorb only EUR 2.8 mln, or 4.7%.

Take-up rates have also been fairly low in other new member states, however. For example, the take-up rate in Poland was 5.2% for Cohesion Funds and 5.8% for Structural Funds.

It being a holiday for government and semi-government organisations on Monday and Tuesday, it was not possible to find out the exact reason for the slow take-up of EU money.

However, we understand that one of the problems was the late establishment of the Agricultural Payments Agency.

European Commission officials have expressed concern in the past about the absorption of EU money.

One official told journalists in March that although the Planning Bureau, which is responsible for absorbing funds, is working extremely hard and is staffed with very capable people, there may not be enough time remaining for Cyprus to make full use of the funds available.