Cyprus should fully utilise the €3 billion offered by EU pandemic funds and EU budget

Cyprus should win the national bet and fully utilise the €3 billion of funds provided by the EU pandemic funds, the EU Recovery and Resilience Fund  (Next Generation EU) and the next multiannual financial framework, Minister of Finance Constantinos Petrides has said, adding the aim is to “create Cyprus that we desire for future generations and to correct the distortions.”

Petrides and Minister of Commerce and Industry Natasa Pelides attended a meeting of the parliamentary committee of external affairs which discussed the government policy pillars for the next EU programme period of 2021-2027 and utilisation of funds of the EU Recovery and Resilience Fund.

“The Recovery and Resilience Fund and the EU multiannual financial framework is to complementary and interconnected parts of the EU economic policy and represent a new growth model with guidelines,” Petrides said in statements to the press after the meeting.

The Finance Minister noted that Cyprus’ draft national recovery plan, submitted to the European Commission, numbers approximately 334 pages, adding that the finalised plan will be submitted in April.

Referring to the government’s five policy pillars, Petrides said these concern Public Health and Civil Protection and lessons from the pandemic with €78.5 million, accelerating transition to a green economy with €422.5 million, strengthening the economy’s competitiveness and resilience with €509 million, the transition to the digital age with €95.5 million and the labour market, education and human capital with €122.5 million.

Petrides recalled that Cyprus absorbed 100% of the funds provided in the previous EU multiannual budget.

On her part, Pelides presented the grant schemes aiming to restart the Cypriot economy comprising totalling €400 million from the EU Cohesion Fund of the EU budget as well the Recovery fund, compared with €120 million in the previous programme period.

She said that €201 million were earmarked from the EU structural and investment funds for the digital upgrade of businesses, fostering young entrepreneurship, for boosting SME competitiveness and energy preservation for houses.

She added that the Ministry’s proposals for EU Recovery Fund grants amounted to €230 million and concern inter alia promotion of renewable energy, upgrading house energy consumption, promoting electronic vehicle charging systems.

Pelides noted that these plans will benefit both households and businesses on issues such as green growth, which entails economic growth while protecting the environment and safeguarding energy preservation and the transition to green energy.