Planning Bureau to use all EU funds for Cyprus

The Cyprus Planning Bureau assured today that no single euro will be lost from the European Union Structural and Cohesion funds earmarked for Cyprus.
The Bureau explains the reasons why Cyprus is presented to have the lowest absorption capacity – 62 per cent – among the ten nations that joined the EU in 2004, with regard to the payments of the period 2004-2006.
EU Commission earmarked for Cyprus a total of 109 million euro, 55 millions from the Structural Funds and 54 millions from the Cohesion Fund.
Regarding the Structural funds, the Bureau says that Cyprus has until 2008 to absorb the funds, adding that until 31 December 2007, Cyprus has absorbed 28 million, while another 11 million will be claimed very soon and consequently Cyprus’ absorption capacity will reach 71%.
It also adds that the Bureau has concluded the planning so that by 2009 Cyprus will absorb all 55 million euro.
Regarding the cohesion fund, the Bureau says that Cyprus has until 2009 to claim the funds earmarked for Cyprus, adding that by 31 December 2007 Cyprus had received funds worth of 22 million euro while another 6 million is expected to be claimed.
The Bureau recalls the delays for the completion of the projects attracting EU funding such as the delay for the construction of the waste disposal plant, caused by the inhabitants of the Lymbia village, which would attract the largest funding from the Cohesion fund with 28.7 million euro.
Furthermore, the Bureau points out that other member states can utilise Structural funds for agriculture, which can be concluded faster because to a large extent the funds can be allocated as subsidies without time consuming procedures, a fact that increases absorption.
According to the Bureau, Cyprus, because of its high per capita income, cannot use Structural funds for agriculture.