EU approves Cyprus state grant to farmers

The EU Agriculture ministers approved on Monday a request by the government of the Republic of Cyprus to grant state assistance of up to CYP 23 mln pounds (EUR 39.3 mln) to Cypriot farmers to repay debts owned due to the Turkish invasion of 1974 and the drought in the period 1990-1997.

Denmark and Sweden, who had earlier presented objections, gave the go ahead by abstaining from the voting.

In a statement, the Danish representation said it withdrew its objection because the debts were created due to a special circumstance, which is the Turkish invasion.

The EU prohibits state grants in an effort to maintain competition. It approves granting state grants only if the request is fully justified.

The loans provided to farmers at the time were mainly for the purchase of machinery and animals. The Cyprus government’s arguments were based on the Turkish invasion and the farmers’ efforts to return to their livelihood following the invasion.

It is politically significant for Greek Cypriots that there was a reference to the Turkish invasion.