Brussels, 16/04/2013 (Agence Europe) - Faced with a severe recession over the past two years, and GDP expected to shrink by 12% by 2015, the Cypriot government is pulling out the stops to make the best of a bad job and try to restore economic growth. On Monday 15 and Tuesday 16 April, the Cypriot president, Nicos Anastasiades, held meetings with various ministers to work out targeted measures for economic growth and to attract foreign direct investment. The measures are to be unveiled to the press on Thursday.
On Tuesday 16 April, the European Commission said it would support the Cypriot efforts. The president of the European Commission, José Manuel Barroso, answered a letter from Anastasiades calling for a change in the EU's policy for Cyprus and calling for more aid (rather than a bigger loan). In his response, Barroso says the Commission will do all within its power to help Cyprus restrict the negative impact of the current crisis. Barroso said: “I do not exclude seeking additional support from the budgetary authority” for extra EU aid in the 2014-2020 programming period. Under the European Summit's agreement on the upcoming multiannual financial framework (MFF), Cyprus has been allocated €945 million (€514 million from the cohesion policy and €431 million for rural development). Barroso said that all cash in “the next MFF was fully allocated to member states in a very precise way, after very difficult negotiations subject to unanimity. Unfortunately no unallocated margin was left in these headings under the European Council approach”, but a needs assessment might ensure that the cash reaches the places where it can do moist good.
Barroso said: “Cyprus is not currently eligible for the future youth employment initiative but since it has not yet been finalised if you feel it could help, I would be pleased to support a request for its extension to Cyprus on an exceptional basis”, but Cyprus is now eligible because it meets the one criterion - unemployment of above 25% in some regions. The latest Eurostat figures say unemployment stood at 31.8% in Cyprus in February 2013.
In Limassol on Sunday, the Cypriot president expressed disappointment at the attempts by a number of European companies to get people to move their savings and investments out of Cyprus. He promised a Cypriot passport to any non-resident investor who has lost more than €3 million from the Cypriot bailout. He said legislation would be made more flexible in order to attract investment. (EL/transl.fl)