Since 1977, Cyprus and the European Economic Community, have signed four protocols on financial and technical co-operation providing for a financial aid of a total amount of 210 million ECU: This aid includes loans, grants, special loans and contributions to risk capital formation.
The total amount of the first two Financial Protocols (30 and 40 million ECU respectively) was used to finance infrastructure development projects in Cyprus such as the Sewerage Project of Nicosia, (Stage II), the Water Development and Supply Project of Vassilikos Pentaskinos, the Dhekelia Power Project, the Southern Conveyor Project, (Phase I) and the Nicosia Master Plan civil works and construction in Ledras/Onasagorou Streets in Nicosia and Kyrenia Avenue (in the occupied part of Nicosia).
Part of the resources of the above Financial Protocols was used in projects of a bicommunal nature, which benefited also the Turkish Cypriot community.
The Third Financial Protocol of a total amount of 62 million ECU, which was signed in l989, was used for the financing of projects in the productive sectors in order to facilitate their adjustment to the new competitive conditions arising from the Cyprus EC Protocol for Customs Union.
Fourth Financial Protocol
The Fourth Financial Protocol between the European Community and the Republic of Cyprus was signed in 1995 and initially covered the period until the end of 1998. It provided for financial aid of a total amount of 74 million ECU, in the form of loans (50m ECU), grants (22m ECU) and risk capital (2m ECU). The aim of this protocol is to provide funding for projects, which promote the economic and social development of Cyprus, as well as projects, which facilitate the transition of the Cypriot economy, with a view to the accession of the country to the European Union.
On 10 March 1999, an Additional Protocol was signed, for the extension of the Fourth Financial Protocol until 31 December 1999. The extension aimed at providing the opportunity for the disbursement of the entire grant component of the Fourth Financial Protocol, to be disbursed for harmonization purposes, technical assistance, and towards supporting efforts to promote a general settlement of the Cyprus problem.
The projects approved for funding under the provisions of the Fourth Financial Protocol which are characterized as bicommunal are:
1. Development of civil society
2. Translation of parts of the acquis communautaire into the Turkish language
Financial Regulation 555/2000
On March 2000 the Council of Ministers approved the Regulation for the Implementation of the Pre-accession Strategy of Cyprus and Malta (2000-2004). Regulation 555/2000 provided for the allocation of 57m EURO to Cyprus, aimed at facilitating the implementation of the countrys Pre-accession strategy.
The projects funded from the resources of the Financial Regulation must fall under the provisions of Cyprus Accession Partnership and the National Programme for the Adoption of the Acquis. A special provision is also included in the Regulation for the funding of bicommunal projects facilitating the development of closer relations between the Greek-Cypriots and the Turkish-Cypriots. The allocations of the funds of the Financial Regulation is shown in figure 1:
Bicommunal projects approved for the years 2000 and 2001 include the Revitalization of the Old Town of Nicosia on both sides of the cease fire line, the enhancement of links between the Trade Unions in Cyprus, and a communication strategy aimed at educating the public on EU issues.
The Government of the Republic of Cyprus promotes and encourages bi-communal projects that aim at the development of co-operation among the Greek-Cypriots and Turkish-Cypriots and facilitate their coexistence under one state, in accordance with the United Nations Resolutions on Cyprus.
In general, trade relations between the EU and Cyprus have developed well over the years. In 2000, EU imports from Cyprus stood at 999 million (compared to 607million in 1999), while during the same period, EU exports to Cyprus were valued at 3109 million (compared to 2368million in1999).
Amount for bicommunal
projects (m Euro)