Hübner in Cyprus on implementation of new cohesion policy

Regional policy Commissioner, Danuta Hübner, on her first official visit to Cyprus, met President of the Republic Tassos Papadopoulos. The Commissioner stressed the importance of Cyprus‘ membership in the European Union and pointed out that the new European cohesion policy will contribute to more growth and quality jobs in the Cypriot economy.

Commissioner Hübner also met Minister of Finance, Michael Sarris, with whom she discussed the government’s priorities for the policy implementation in 2007-2013. In Limassol the Commissioner addressed a conference on SMEs organized by the Cyprus chamber of commerce and industry. In Nicosia and Limassol she is visiting a number of European projects in urban regeneration and transport.

The visit of Regional Policy Commissioner, Danuta Hübner, to Cyprus takes stock of implementation of the cohesion policy since 2004, and aims at finalizing preparations for the programming period 2007-2013. “During the negotiations with the government the Commission found an agreement on practically all the issues. I am convinced that in the coming days we will officially approve the Cypriot strategy for the implementation of cohesion policy” stated Commissioner Hübner.

During the meeting with President Papadopoulos Commissioner Hübner will emphasize the importance of Cyprus membership in the European Union. The Commissioner and the President will exchange views on current state of affairs in the Union and discuss the state of preparations of Cyprus for adoption of Euro. Commissioner Hübner will also underline Cyprus chance to benefit from the cohesion policy, which will increase the competitiveness of the Cypriot economy and enable it to catch up with the most performing economies in Europe.

In her talks with Minister Sarris, Commissioner Hübner welcomed the Cypriot authorities’ efforts to improve the efficiency of cohesion policy implementation. She also emphasized that, as in the coming years the amounts available for the investment will increase dramatically, further efforts will be necessary to ensure the creation of a good quality project pipeline.

Commissioner Hübner addressed the conference organised by the Cyprus chamber of commerce and industry “EU Cohesion Policy 2007-2013: Opportunities for SMEs”. In her speech she will focus on the role played by SMEs in Cyprus and the need to strengthen the cooperation across companies, with a view to enable smaller firms to enter European markets. The Commissioner supported the approach of the Cypriot Government to diversify the tourist sector through the creation of new tourist products, which will also help to revitalise many rural areas.

Local authorities will present to the Commissioner plans for the Cyprus Cultural Centre, an investment likely to be co-financed by cohesion policy in the new, 2007-2013 period.

In the period 2004-2006 a total EU allocation of EUR103 mln was available for Cyprus under the European Regional Development Fund (EUR28 mln) the European Social Fund (EUR54 mln) and the Cohesion Fund (EUR54 mln).

In the period 2007-2013 these amount will increase by around three times annually to reach a total of EUR612 mln over the seven year period. These funds are distributed with EUR280 mln for the ERDF, EUR119 mln for the ESF and EUR213 mln for the Cohesion Fund.

The Commission should approve Cypriot National Strategic Reference Framework by its decision in a few weeks. The policy mix proposed by the Cypriot Government is in line with Commission’s priorities and pays due attention to the necessary investment in environment infrastructure, renewable energy, notably photovoltaic energy, and in the Research, Development and Innovation area.