The proposals for projects to be funded by the European Recovery programme have been completed by all Cyprus government ministries, and are ready for approval by the Cyprus Council of Ministers, sources at the Finance Ministry told the Cyprus Mail on Wednesday.
On January 7-8, the Council of Ministers will make a final review of the draft proposals, and the Finance Minister is expected to sign off on them, after which they will be sent to the European Commission for discussion.
For Cyprus to obtain the funding, the projects must first be carried out as agreed to in the proposals, and funding is linked to the passage of a series of structural reforms by the Cyprus Parliament.
Each political party present in parliament has been asked to provide a single delegate, and these designated representatives will form a committee to prepare the needed structural reforms. The idea is clearly to form a consensus to smooth legislative passage, the sources noted.
At stake is €1 billion in grant funding for projects that affect nearly every aspect of life in Cyprus, from energy supply to digitalisation to telecommunications to labour to the reform of local authorities, just to name a few aspects.
The ‘Green Deal’ and digitalisation are the two agendas driving most of the projects under consideration. The digital transformation of public services are to be accelerated, local authorities are to become more efficient, and renewable energy projects are to be prioritised, along with a comprehensive reform of education.
“Every ministry has submitted proposals,” the sources said, “and they have already been subject to discussion with President Nikos Anastasiades and the Council. There should be no obstacle to their approval.”
Projects that could start as early as January include those from the commerce ministry with grants given to households and businesses to make buildings energy efficient, installing solar energy panels on all rooftops in Cyprus. Projects coming through from the transport ministry would include electric car and truck charging/refueling stations.
But this is only the beginning. For the private labour force, promotion of flexible working arrangements and teleworking is up for approval; in education, a complete review of the evaluation system and staff is proposed, along with a total review of curriculum, and upskilling to digital training.
In technology, Cyprus will step up to the fastest Internet available as fibre optics cable brings it to every home and business. Citizens interactions with government will take place much more widely online. The transition from fossil fuels to renewable energy will be accelerated. IT infrastructure will leapfrog to intensive use of the Cloud.
To give a further example of the scope of these projects, part of the programme will address specific weaknesses in the Cyprus economy: Promotion of Agri-tech, technologising farming, branding Cypriot products, helping the secondary sector (conversion of raw materials into products) add value, investment in high-value sectors like software and innovation, promoting light manufacturing, creating centres of excellence for research and development, supporting STEM education for students.
The key word, in all of this, is to create resilience, an economy that is diversified and strong in high-value enterprises.
EU leaders on December 10 clinched a deal to end a blockade of the bloc’s historic €1.8 trillion budget-and-recovery package by Hungary and Poland over plans to link EU payments to respect for the rule of law.
The standoff threatened the implementation of the the recovery fund which all Member States await eagerly to kick start emergence from the pandemic crisis.
