WRITTEN QUESTION E-0030/98 by John Corrie (PPE) to the Council (28 January 1998)

Subject: EU aid to Cyprus

How much money has come in the last ten years to Cyprus? How much was spent on the Greek side and how much on the Turkish side - and on what projects?

Answer (7 April 1998)

1. In connection with the period that interests the Honourable Member, reference should be made to the second Financial Protocol of 1984, which remained in force until 1988, the third Financial Protocol of 1990, until 1994, and the fourth Financial Protocol, in force since 1 January 1996.

The second Protocol made provision for ECU 28 million in EIB loans, ECU 6 million in subsidized loans and ECU 10 million in aid.

The third Protocol made provision for ECU 44 million in EIB loans, ECU 5 million in venture capital and ECU 13 million in non-refundable aid.

These amounts were committed in their entirety, with the exception of the part set aside for the Turkish Cypriot community. The obstacles encountered in projects for both communities, both in drawing them up and in putting them into practice, have been such that the funds have not been used. The Community does not recognize the authorities in Northern Cyprus, while they cannot agree to proposed financing intended for them being handled by the authorities of the Republic of Cyprus.

As to identifying the projects for which aid has been used, the Honourable Member is invited to ask the Commission, which is responsible for the implementation of these programmes, for the desired detail as to their allocation between the Greek and Turkish communities.

2. The fourth Financial Protocol, currently in force, makes provision for financial cooperation with Cyprus amounting to ECU 74 million in total, allocated as follows:

- ECU 50 million in loans from the EIB from its own resources in the form of risk capital already allocated to projects to promote industry and environmental improvement;

- ECU 2 million from budgetary resources in the form of contributions for risk capital already committed to the Cyprus Development Bank;

- ECU 22 million in grants from budgetary resources allocated as follows:

- ECU 12 million to finance studies or to support action to help improve understanding of the island's situation. This amount can be used only if both sides are prepared to work together;

- ECU 5 million to promote the development of the island as a whole, an area in which, to the Council's knowledge, no projects appear to have been launched;

- ECU 5 million for projects which may be seen as pre-accession projects. These are designed to prepare the Cypriot Government to include the 'acquis communautaire' with the help of technical assistance in the following sectors: transport, tourism, statistics and oil and products derived therefrom; to support the participation of Cyprus in certain Community programmes (Media II, Leonardo, Socrates and Youth for Europe) and to assist in spreading the idea of European integration, in particular through support for the European Institute of Cyprus.

The Honourable Member is also invited to ask the Commission for information on the progress made by the projects undertaken and how they are shared among the two communities on the island.

3. Furthermore, Cyprus receives so-called horizontal financial cooperation for all Mediterranean partners within the framework of the new Mediterranean policy (in particular regional cooperation, environmental matters, participation in the MED and LIFE programmes) and of ECIIP (European International Investment Partners). Cyprus is also covered by the MEDA Regulation for regional cooperation measures (essentially the financing of Barcelona Process activities).