Brussels, 26/04/2013 (Agence Europe) -The Commission has decided to re-allocate €21 million of funding to Cyprus from the €600 million total EU regional funding for the country for 2007-2013. On Wednesday 26 April, the European Commission approved the re-programming plan to help Cyprus cope with the recent collapse of its banks and help the country “weather the crisis and tackle its economic problems by using EU regional funds in the most effective way possible - in areas that will contribute to the country's efforts to boost growth and competitiveness, particularly that of its SMEs”, said EU Regional Development Commissioner Johannes Hahn. The re-programming of the cash was done at Cyprus' request.
The cash will focus on entrepreneurship and innovation to boost growth in the short term. The European Regional Development Fund (ERDF) and cohesion fund money will be shifted under the re-programming decision for Cyprus. The €21 million will be broken down as follows: - €11 million will be used to help small business, particularly young entrepreneurs (providing continued funding for a very effective programme for young entrepreneurs); - €10 will be spent on restoration of urban and rural areas. Big projects of more than €50 million will now be prioritised, like a sewerage system and a feeder road between the port of Limassol and the Limassol-Paphos motorway. Shirin Wheeler, a spokesperson for the Commissioner, said the re-programming will help Cyprus avoid any loss of potential finance and help it make the most of the cash at its disposal. Parts of the programme that are falling behind a little will be redirected to areas where they can have a more salutary impact, adding that with a 47.4% absorption rate for funding, Cyprus is above the EU average and is good at making use of and managing EU funding. (MD/transl.fl)