08.07.2022
President Nikos Anastasiadis on Friday welcomed the approval of Cyprus’ Thalia Social Cohesion Policy Program 2021-2017, calling it a landmark moment in the country’s efforts to restructure and develop its economic and social models.
Anastasiades’ comments came during a speech at the Cyprus Theater Organization (Thoc), which he visited with EU Commissioner for Cohesion and Reform Elisa Ferreira, who is on an official visit to Cyprus.
The President thanked the Commissioner for her visit, saying it was recognition that Cyprus was the first country to receive approval for its social cohesion policy program.
“Cyprus’ strong performance in absorbing European funds, combined with a successful application for increased funding, is due not only to the dedicated efforts of the government and the close and constructive cooperation that we have established with the European Commission, but also to the remarkable figures of the civil service, whom I sincerely thank and congratulate”, the president said.
“It also proves once again that little Cyprus can boast that it has no shortage of opportunities compared to the rest of its European Union partners,” he added.
The total amount for the implementation of the Thalia program is 1.8 billion euros, while the national contribution is 840 million euros.
Anastasiadis said the program aims to change the Cypriot economy to become more robust and competitive.
This, he explained, will be achieved through “smart, digital and green investments in healthy employment and social cohesion, in full alignment with the policies and objectives of the European Union.”
This includes the implementation of more than 120 projects and funding programs in five different areas.
The President said that each relevant government minister would provide further information in the coming days.
The first area of investment, with a budget allocation of €312 million , concerns the digital transition, innovation and entrepreneurship. The second area, for which 783 million euros have been allocated, concerns the green transition. It will include a range of schemes and investments that will promote the development of a circular economy and the use of renewable energy sources, the development of biodiversity conservation initiatives, the development of urban mobility and the fight against climate change.
Of this amount, €187 million will come from the Just Transition Fund, an instrument set up to support the countries and regions most affected by the transition to climate neutrality.
“This will accelerate the penetration of renewable energy into the energy mix of the country, which we all recognize as an urgent priority,” said Anastasiadis. “This will help to immediately reduce the cost of energy consumption in households and businesses, as well as meeting our commitment to achieving climate neutrality,” he added.
Road transport is the third area of investment, with a total budget of 30 million euros. This includes the completion of the Nicosia ring road project, as well as efforts to reduce traffic congestion through various means.
In addition, 424 million euros will be allocated to social policies, including “the creation of a more just society without any exceptions, based on the support of all who need the protection of the state.”
“In addition to what has already been carried out, there will be new programs to better protect those who need support from the state,” the president said. “Investments are planned in stimulating employment, training projects for the unemployed and youth, as well as activating women in the labor market through subsidies for education in kindergartens for children under 4 years old,” he added, noting that such a program will be launched in September.
In addition, the president said that investments in this area will also include social inclusion activities in schools, especially for immigrant children. This will be combined with actions to socially integrate people with disabilities, create new supported housing, improve the disability assessment system, and provide food and material assistance to those who need it.
The last area of investment, with a budget of 182 million euros, concerns local government reforms.
The funds will be directed to projects aimed at improving public spaces and creating new centers and territories of activity, including parks, squares, open-air amphitheatres, and multifunctional buildings.
“As I mentioned, the provisions of the Thalia program for 2021-2027 should not be seen in isolation, but as an addition to and as part of the government’s broader and more focused vision of the legacy it will leave for future generations,” the president said. “This plan also includes other important financial instruments, such as the Recovery and Resilience Plan with a total allocation of €1.2 billion , the Common Agricultural Policy, as well as many other European financial instruments with a total of €4.4 billion. Euro. billion,” he added.
The president said the figures above do not take into account private sector investment, which is estimated to be in excess of 1 billion euros, as well as additional funds made available in future state budgets.
“The implementation of the Thalia program alone is expected to add 6% to Cyprus’ GDP by 2029, with the goal of creating 8,500 new well-paid jobs,” said Anastasiades. “And this does not include the additional and co-benefits that will be received from the rest of the financial instruments, as well as the private investment that this will stimulate,” he concluded.
