Multi-million EU package for rural development

The EU yesterday gave the go-ahead for 143 million euros to be spent on rural development for the Republic of Cyprus in the next two years.

The STAR committee approved the Rural Development Plan for the government-controlled areas for 2004-2006. The plan will be co-financed by the EU Agriculture Fund (EAGGF) and the government.

The EAGGF will contribute 74.8 million euros for 2004-2006 and will be complemented by national public funding of 69.08 million euros. Formal approval of the decision is expected by the Commission in the coming days.

Rural development provides the largest financial package for Cyprus from its participation in all EU programmes.

The programme includes a broad range of rural development measures, which give a special emphasis to the improvement of infrastructure and the competitiveness of the rural economy, the strengthening and diversification of rural areas and protection of the environment. The general aim is to foster the sustainable economic development of rural areas and to improve the prosperity of the population living in the countryside.

Franz Fischler, Commissioner for Agriculture, Rural Development and Fisheries said: “This is good news for the rural population of the Republic of Cyprus. We must keep the momentum going now and do everything necessary to start work on the ground so that citizens in the rural areas of the Republic of Cyprus can benefit from the opportunities to develop their rural economies as soon as possible.”

Apart from economic objectives, the plan puts special emphasis on the protection of the environment in a country where tourism plays a vital economic role.

Environmentally-friendly land management is one of the prerequisites for sustainable tourism development.

The physical and architectural environment, cultural heritage, public health and specific national and regional features will be protected and further developed under the plan.

The plan’s priorities have been formulated in partnership with the Cypriot authorities. These include the improvement of competitiveness at production, processing and marketing level; focusing on the introduction of new technology, new brands and modernisation of farms and their compatibility with European standards. Priority is given to the production of quality products and promotion of local specialities such as Halloumi cheese and Commandaria wine.

The plan aims to strengthen the socio-economic conditions of rural areas, or more specifically, re-establishing the traditional landscape in less favoured mountainous regions while strengthening the role of farmers to safeguard the natural and cultural heritage of the Cypriot countryside.

A small amount, 4.25 million euros, will be set aside for protection of the environment and sustainable management of natural resources, mainly dealing with the forests to improve their ecological, economic and social role.

A final priority is the strengthening of administrative capacity for implementation of the plan.