The European Commission is initiating a series of new economic measures to help address the broader socio-economic impact of the Covid-19 pandemic in the Turkish Cypriot community, worth €11 mln.
This package includes support for structural business reforms, grants for micro-businesses and industry, and direct investments for energy efficiency measures to stimulate green growth and jobs, according to an announcement by the European Commission representation in Cyprus. The first activities should commence in July 2020.
The emergency economic support measures aim to help avoid a deep and protracted socio-economic crisis in the Turkish Cypriot community, it is noted. Subject to the adoption of the financing decisions, the measures will be implemented through grants to small businesses, structural business reform and job creation through investment in energy efficiency infrastructure.
The proposed Emergency Economic Support Package comprises the following elements:
Grant funding for small businesses with the aim to help “kick-start” the economy and prevent closure of otherwise viable companies. The proposed budget reallocation is €3 mln for micro-businesses and €3.5 mln for the small industrial companies, it is added.
Also, the promotion of social and economic development through economic monitoring and studies implemented by the World Bank will continue to support a recovery plan with targeted assistance on improving the business environment, with a strong green energy component, as a response to the economic crisis caused by the outbreak of the Covid-19 pandemic. The proposed budget reallocation for this component is €1 mln.
The current flagship project, “Energy Efficient Schools,” will be complemented by a comprehensive program to promote development towards a greener economy and job creation by upskilling the local labor force and developing local innovative and sustainable solutions. The proposed budget reallocation for this component is €3.6 mln, the announcement concludes.