The document outlines Cyprus's EU budget allocation for the 2014-2020 period, highlighting key funding priorities and areas for economic development. It emphasizes the strategic focus on tourism, agri-tourism, manufacturing, and employment, with specific maximum aid percentages for different enterprise sizes. Cyprus will receive a total of €735.6 million for cohesion policy funding and additional allocations for rural development and youth employment initiatives, aiming to foster sustainable growth and competitiveness.

1. CYPRUS
UPDATED | 11| 2014

2. EU BUDGETS
2014 | 2020

3. COHESION
AREAS

4. POLICY
ELIGIBILITY
2014 - 2020

5. ALL AMOUNTS x 1.000.000
EU BUDGET
ALLOCATION
IN 2011 PRICES
Global Europe
Administration
Compensation
Security & Citizenship
€ 199.828
€ 959.988
in current prices: € 1.082.555

6. BUDGET
PROPORTIONS
ALL AMOUNTS x 1.000.000

7. BUDGET
CYPRUS
AMOUNTS
REGIONALLY
ALLOCATED
ALL AMOUNTS x 1.000.000

8. THE 5
ESI FUNDS
The five European Structural and Investment Funds;
| The European Regional Development Fund
| The European Social Fund
| The Cohesion Fund
| The European Maritime and Fisheries Fund
| The European Agricultural Fund for Rural Development

9. PARTNERSHIP
AGREEMENTS
| EU Member States are required to draw up and implement
strategic plans with investment priorities covering the five ESI
Funds.
| These Partnership Agreements (PAs) are negotiated between the
European Commission and national authorities, following their
consultation of various levels of governance, representatives from
interest groups, civil society and local
and regional representatives.

10. MAXIMUM
AID PERCENTAGES
| The designated areas, a list of regions with 419,713 inhabitants in total,
cover 49.94% of Cyprus' population.
| Cyprus has proposed its assisted areas across the country on the basis
of their socioeconomic situation (i.e. GDP per capita).
| Cyprus selected the assisted areas with a particular emphasis on
promoting the tourism, agri-tourism and manufacturing sectors as well as
the specific objectives of its regional and rural development policy.

11. MAXIMUM
AID PERCENTAGES
| In all eligible areas the maximum level of aid that can be granted to
investment projects carried out by large companies is 10% of eligible
costs.
| This percentage can be increased by up to 10 percentage points for
medium-sized enterprises and by up to 20 percentage points for small
enterprises.
| While the population coverage has remained the same as compared to
the previous aid map, the aid intensities have slightly decreased.

12. STATUS
CURRENT
UPDATED 30/10
Total number
of OP´s submitted
per country
Countries have
their OP´s
adopted: 21 OP >Denmark
1 OP >Lithuania

13. PLANNING
| Partnership Agreement Adopted 20 – 06 – 2014
| 2 Operational Programme’s submitted
| Adoption of OP’s by European commission in Q4 2014
| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s
OPs should be submitted by Member States within 3 months following the
submission of the Partnership Agreement.
The Commission makes observations within 3 months and adopts the OP
no later than 6 months from the date of its submission.

14. FUNDING
PRIORITIES
The overall objective is to restructure the Cypriot economy and turn
it into a sustainable, innovation-driven one, which is more open,
with sustainable growth and jobs. To this end, the following three
funding priorities are identified:
| Support the restructuring of the Cypriot economy and enhancement of its
competitiveness
| Upgrade of human resources, promotion of employment and social
cohesion
| Protection and efficient use of resources

15. EXPECTED
RESULTS
Investments aim at addressing the main development needs and
thus strengthening social, economic and territorial cohesion.
| R&I expenditure in relation to Gross Domestic Product (GDP) increase
from 0,47% in 2012 to 0,5% in 2020 leveraging private R&I investments.
| Increase in the number of public services delivered electronically to
citizens and businesses and modernisation of the public administration
through ICT use and reorganisation of public administration
| Strengthening business innovation in all sectors of the economy through
the development of cooperation networks with R&I.

16. EXPECTED
RESULTS
| Diversification of the structure of the economy and improvement of its
competitiveness, including in the agri-food sector.
| Reduction in greenhouse gas emissions compared to 2005 (for sectors
outside the ETS – energy, transport and agriculture) by 5% against 1.5%
achieved in 2011
| In relation to energy objectives, energy consumption from Renewable
Energies (RES) will increase in 2020 to 13% against 7.7% in 2011, while
energy efficiency is estimated to be increased to 14.3% against 12.3%

17. EXPECTED
RESULTS
| Increased carbon sequestration in agricultural and forest lands and
promotion of environmentally sound farming practices for the prevention of
soil degradation and erosion in line with the objectives of the National
Strategy for adaptation to climate change.
| Sustainable management and efficient use of water resources and
implementation of the objectives of the Water Framework Directive in an
effort to reduce the risks and effects of droughts.
| Help increasing employment rates and combatting unemployment,
especially for the youth by making also use of the Youth Employment
Initiative (YEI)

18. EXPECTED
RESULTS
| Protection and restoration of biodiversity and upgrading of Nature 2000
and High Nature Value areas, reduction of biodegradable materials
disposed in landfills, contributing to national target of reducing up to 35 %
of the total weight of the biodegradable municipal waste produced by 2016
| Improvement of trans-European transport network and of urban mobility
| Mitigating the impact of the crisis on the most disadvantaged by targeted
social inclusion actions
| Developing human capital and increase participation in Life Long
Learning (LLL) and Vocational Education and Training (VET)
| Decrease even more the rate of early school leaving.

19. FINANCIAL
ALLOCATIONS
| For the 2014-2020 programming period Cyprus will receive €735.6
million in total Cohesion Policy funding (in current prices, including
European Territorial Cooperation funding) and €132.2 million for Rural
Development to be invested in the country’s real economy.
| The allocation for European Maritime and Fisheries Fund (EMFF) is
€39.715.209. Additionally, € 11.6 million will be allocated under the Youth
Employment Initiative.

20. PROGRAMME
ARCHITECTURE
Cohesion policy will be delivered by 2 operational programmes
(OPs), as in 2007-13 period:
| OP Competitiveness & Sustainable Development co-financed ERDF&CF
| OP Employment, Human Resources & Social Cohesion co-financed ESF
Moreover there will be
| One Rural Development Programme co-financed by the EAFRD and
| One OP for Maritime and Fisheries supported by the EMFF

21. EU BUDGET
BEEAKDOWN
ALL AMOUNTS x 1.000.000

22. ALLOCATION BROKEN DOWN BY
THEMATIC OBJECTIVE& BY FUND

23. BUDGET BREAKDOWN
OPERATIONAL PROGRAMS