CYPRUSUPDATED | 11| 2014

2014 | 2020EU BUDGETS

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Global Europe

Administration

Compensation

Security & Citizenship

€ 199.828

€ 959.988in current prices: € 1.082.555

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The five European Structural and Investment Funds;

| The European Regional Development Fund

| The European Social Fund

| The Cohesion Fund

| The European Maritime and Fisheries Fund

| The European Agricultural Fund for Rural Development

ESI FUNDSTHE 5

| EU Member States are required to draw up and implement

strategic plans with investment priorities covering the five ESI

Funds.

| These Partnership Agreements (PAs) are negotiated between the

European Commission and national authorities, following their

consultation of various levels of governance, representatives from

interest groups, civil society and local

and regional representatives.

AGREEMENTSPARTNERSHIP

| The designated areas, a list of regions with 419,713 inhabitants in total,

cover 49.94% of Cyprus' population.

| Cyprus has proposed its assisted areas across the country on the basis

of their socioeconomic situation (i.e. GDP per capita).

| Cyprus selected the assisted areas with a particular emphasis on

promoting the tourism, agri-tourism and manufacturing sectors as well as

the specific objectives of its regional and rural development policy.

AID PERCENTAGESMAXIMUM

| In all eligible areas the maximum level of aid that can be granted to

investment projects carried out by large companies is 10% of eligible

costs.

| This percentage can be increased by up to 10 percentage points for

medium-sized enterprises and by up to 20 percentage points for small

enterprises.

| While the population coverage has remained the same as compared to

the previous aid map, the aid intensities have slightly decreased.

AID PERCENTAGESMAXIMUM

CU

RR

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UP

DA

TE

D 3

0/1

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STA

TU

STotal number

of OP s submitted

per country

Countries have

their OP s

adopted:21 OP >Denmark

1 OP >Lithuania

| Partnership Agreement Adopted 20 – 06 – 2014

| 2 Operational Programme’s submitted

| Adoption of OP’s by European commission in Q4 2014

| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s

OPs should be submitted by Member States within 3 months following the

submission of the Partnership Agreement.

The Commission makes observations within 3 months and adopts the OP

no later than 6 months from the date of its submission.

PLANNING

The overall objective is to restructure the Cypriot economy and turn

it into a sustainable, innovation-driven one, which is more open,

with sustainable growth and jobs. To this end, the following three

funding priorities are identified:

| Support the restructuring of the Cypriot economy and enhancement of its

competitiveness

| Upgrade of human resources, promotion of employment and social

cohesion

| Protection and efficient use of resources

PRIORITIESFUNDING

Investments aim at addressing the main development needs and

thus strengthening social, economic and territorial cohesion.

| R&I expenditure in relation to Gross Domestic Product (GDP) increase

from 0,47% in 2012 to 0,5% in 2020 leveraging private R&I investments.

| Increase in the number of public services delivered electronically to

citizens and businesses and modernisation of the public administration

through ICT use and reorganisation of public administration

| Strengthening business innovation in all sectors of the economy through

the development of cooperation networks with R&I.

RESULTSEXPECTED

| Diversification of the structure of the economy and improvement of its

competitiveness, including in the agri-food sector.

| Reduction in greenhouse gas emissions compared to 2005 (for sectors

outside the ETS – energy, transport and agriculture) by 5% against 1.5%

achieved in 2011

| In relation to energy objectives, energy consumption from Renewable

Energies (RES) will increase in 2020 to 13% against 7.7% in 2011, while

energy efficiency is estimated to be increased to 14.3% against 12.3%

RESULTSEXPECTED

| Increased carbon sequestration in agricultural and forest lands and

promotion of environmentally sound farming practices for the prevention of

soil degradation and erosion in line with the objectives of the National

Strategy for adaptation to climate change.

| Sustainable management and efficient use of water resources and

implementation of the objectives of the Water Framework Directive in an

effort to reduce the risks and effects of droughts.

| Help increasing employment rates and combatting unemployment,

especially for the youth by making also use of the Youth Employment

Initiative (YEI)

RESULTSEXPECTED

| Protection and restoration of biodiversity and upgrading of Nature 2000

and High Nature Value areas, reduction of biodegradable materials

disposed in landfills, contributing to national target of reducing up to 35 %

of the total weight of the biodegradable municipal waste produced by 2016

| Improvement of trans-European transport network and of urban mobility

| Mitigating the impact of the crisis on the most disadvantaged by targeted

social inclusion actions

| Developing human capital and increase participation in Life Long

Learning (LLL) and Vocational Education and Training (VET)

| Decrease even more the rate of early school leaving.

RESULTSEXPECTED

| For the 2014-2020 programming period Cyprus will receive €735.6

million in total Cohesion Policy funding (in current prices, including

European Territorial Cooperation funding) and €132.2 million for Rural

Development to be invested in the country’s real economy.

| The allocation for European Maritime and Fisheries Fund (EMFF) is

€39.715.209. Additionally, € 11.6 million will be allocated under the Youth

Employment Initiative.

ALLOCATIONSFINANCIAL

Cohesion policy will be delivered by 2 operational programmes

(OPs), as in 2007-13 period:

| OP Competitiveness & Sustainable Development co-financed ERDF&CF

| OP Employment, Human Resources & Social Cohesion co-financed ESF

Moreover there will be

| One Rural Development Programme co-financed by the EAFRD and

| One OP for Maritime and Fisheries supported by the EMFF

ARCHITECTUREPROGRAMME

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THEMATIC OBJECTIVE& BY FUNDALLOCATION BROKEN DOWN BY

OPERATIONAL PROGRAMSBUDGET BREAKDOWN