REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Annual Report 2025: Twentieth annual report on the implementation of the EU assistance under Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community
Date: 2026-06-30
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: Cyprus, EU aid, activity report, aid programme, civil society, development aid, economic development, financial aid, national unification, social development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.6.2026  COM(2026) 325 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Annual Report 2025: Twentieth annual report on the implementation of the EU assistance under Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community  
 
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

Annual Report 2025: Twentieth annual report on the implementation of the EU 
assistance under Council Regulation (EC) No 389/2006 of 27 February 2006 establishing 
an instrument of financial support for encouraging the economic development of the 
Turkish Cypriot community 

1. 

INTRODUCTION 

Council Regulation (EC) No 389/20061 (the Aid Regulation) is the basis for providing 
assistance  to  the  Turkish  Cypriot  community  and  requires  annual  reporting  to  the 
European  Parliament  and  the  Council.  The  aid  programme  for  the  Turkish  Cypriot 
community aims to facilitate the reunification of Cyprus by encouraging the economic 
development  of  this  community,  with  a  particular  emphasis  on:  (i)  the  economic 
integration of the island; (ii) improving contacts and building bridges between the two 
communities and with the EU; and (iii) preparation for implementing the EU acquis, 
following a solution to the Cyprus problem. 

2. 

PROGRAMMING OF THE ASSISTANCE 

Between  2006  and  the  end  of  2025,  EUR 760 670 469.93  was  programmed  for 
operations under the Aid Regulation. The amount committed in September 2025 for 
the  2025  annual  action  programme  was  EUR 33 721 307.002.  The  2021-2027 
multiannual  financial  framework,  with  a  total  budget  of  EUR 240 million,  has 
provided  multiannual  funding  for  the  programme.  The  aid  programme  remains 
exceptional  and  transitional  in  nature.  It  aims  to  prepare  for  and  facilitate  the  full 
application  of  the  acquis  in  the  areas  of  the  Republic  of  Cyprus  in  which  the 
Government of the Republic of Cyprus does not exercise effective control following a 
solution to the Cyprus problem. 

In the event of a comprehensive settlement of the Cyprus problem, the Council will, 
on the basis of a proposal from the Commission, decide unanimously on the necessary 
adaptations  to  the  Aid  Regulation.  In  addition,  Council  Regulation  (EU,  Euratom) 
2020/20933 foresees a revision of the multiannual financial framework in the event of 
reunification.  

3. 

IMPLEMENTATION MECHANISMS 

The aid programme is implemented in the areas of the Republic of Cyprus in which 
the  Government  of  the  Republic  of  Cyprus  does  not  exercise  effective  control  (the 

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Council  Regulation  (EC)  No 389/2006  of  27 February  2006  establishing  an  instrument  of  financial 
support for encouraging the economic development of the Turkish Cypriot community and amending 
Council Regulation (EC) No 2667/2000 on the European Agency for Reconstruction (OJ L 65, 7.3.2006, 
p. 5). 
Commission Implementing Decision of 11 September 2025 on adopting an Action Programme for the 
Turkish Cypriot community for the year 2025 [C(2025) 6117] - Aid Programme decision 2025 - 
European Commission. 
Council  Regulation  (EU,  Euratom)  2020/2093  of  17 December  2020  laying  down  the  multiannual 
financial framework for the years 2021 to 2027 (OJ L 433I, 22.12.2020, p. 11). 

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‘non-government-controlled  areas’)  and  where  the  application  of  the  acquis  is 
temporarily suspended pursuant to Protocol No 10 of the Act of Accession. Assistance 
is implemented under direct and indirect management. 

The Commission continues to implement the aid programme in a unique political, legal 
and diplomatic context. The granting of assistance under the Aid Regulation does not 
imply  recognition  of  any  authority  in  the  areas  in  which  the  Government  of  the 
Republic  of  Cyprus  does  not  exercise  effective  control.  Ad  hoc  arrangements  are 
required  to  implement  the  programme,  while  respecting  the  principles  of  sound 
financial management. The tools used in this respect include: (i) detailed monitoring 
of contracts and targeted support for beneficiaries; (ii) revised payment conditions; and 
(iii)  a  careful  approach  to  the  use  of  bank  guarantees.  The  assistance  involves  a 
significant amount of grant support, requiring resource-intensive management. 

In the event of reunification and a comprehensive settlement entering into force, the 
suspension of the application of the acquis pursuant to Protocol No 10 will be lifted. 
For this reason, and to facilitate the implementation of the projects financed through 
the aid programme, the Turkish Cypriot community must progressively align with the 
acquis. 

The Commission implements the selected projects through the EU Programme Support 
Office  in  the  non-government-controlled  areas  in  Nicosia.  The  Commission 
Representation  in  Cyprus  also  hosts  meetings,  seminars  and  press  conferences  and 
communicates  with  the  Cypriot  public  throughout  the  island,  including  on  topics 
related  to  the  aid  programme.  In  addition,  the  EU  InfoPoint,  funded  under  the  aid 
programme, carries out a range of communication and visibility activities, providing 
information about EU policies, priorities and actions in support of the Turkish Cypriot 
community, while promoting European culture. 

4. 

IMPLEMENTATION DURING THE REPORTING PERIOD 

4.1. 

General overview 

The Commission continues to implement the Aid Regulation with the overall aim of 
supporting reunification.  

During  the  reporting  period,  the  Commission  continued  to  provide  support  to  key 
initiatives. These include: (i) the EU scholarships programme for the Turkish Cypriot 
community;  (ii)  the  peace  education  programme  for  high  school  students  with  the 
United  World  Colleges;  (iii)  supporting  confidence-building  measures  under  the 
auspices of the respective leaders of the two communities, such as the Committee on 
Missing Persons in Cyprus, the Technical Committee on Cultural Heritage, and the 
bicommunal  Technical  Committees;  and  (iv)  initiatives  encouraging  and  enabling 
trade across the Green Line. 

Supporting the socio-economic development of the community remains an essential 
feature of the programme. 

Tailored  assistance  was  provided  to  upgrade  standards  in  key  economic  sectors 
through projects targeting the private sector and food businesses. Significant efforts 
were  made  to  improve  animal  health  and  food  safety  in  the  Turkish  Cypriot 
community, which is beneficial for the whole island and for the EU. 

The Commission continued to provide support to the Turkish Cypriot community to 
reach the EU standards set by the measures adopted in 2021 registering ‘Χαλλούμι’ 
(‘Halloumi’/‘Hellim’) as a protected designation of origin (PDO) and setting out the 

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conditions  for  its  trade  across  the  Green  Line.  The  Commission  also  continued  to 
convene  the  informal  working  group  on  ‘Halloumi’/‘Hellim’,  bringing  together 
stakeholders from both Cypriot communities. 

Significant EU-funded infrastructure projects were launched in 2025. They included: 
(i) extending the Pedieos/Kanlıdere linear park into the northern part of Cyprus; (ii) 
expanding  the  Agios  Dometios/Metehan  crossing  point;  (iii)  installing  photovoltaic 
panels in the Mia Milia/Haspolat wastewater treatment plant; (iv) replacing sewerage 
pipes belonging to Trunk 1; and (v) laying a return pipe for treated water. 

There are still considerable gaps in the beneficiaries’ capacity to effectively implement 
the  acquis  following  a  comprehensive  settlement.  However,  the  Turkish  Cypriot 
community continued to make progress in acquis alignment in several areas, such as 
product  safety,  anti-money  laundering,  education,  statistics  and  environment,  and 
showed continued interest in working in additional sectors and areas. 

At the end of the year, 102 contracts were running under the aid programme. 

4.2. 

Progress by objectives 

The overall objective of the aid programme is to facilitate the reunification of Cyprus 
by encouraging the economic development of the Turkish Cypriot community. There 
is a particular emphasis on: (i) the economic integration of the island; (ii) improving 
contacts between the two communities and with the EU; and (iii) preparation for the 
acquis. 

The activities carried out in 2025 are described below, for each objective of the Aid 
Regulation. 

4.2.1.  Objective 1: Promoting social and economic development 

The  Commission  continued  to  promote  and  support  the  economic  integration  and 
development  of  the  Turkish  Cypriot  community.  It  strengthened  its  long-standing 
commitment to increasing the competitiveness and innovation of the Turkish Cypriot 
private  sector,  recognising  small  and  medium-sized  enterprises  as  the  backbone  of 
local economic activity. Since the start of the aid programme, the EU has awarded over 
2 554 grants, amounting to more than EUR 27 million for private sector development. 

In 2024, the Commission launched a new initiative to support innovation and enhanced 
competitiveness in Turkish Cypriot businesses. Since then, the eunite programme – 
implemented  with  the  Deutsche  Gesellschaft  für  Internationale  Zusammenarbeit 
(GIZ)GmbH  –  has  awarded  grants  totalling  nearly  EUR 2  million  to  45  companies 
trading  or  seeking  to  trade  across  the  Green  Line,  enabling  them  to  align  with  EU 
standards.  Beyond  grant  assistance,  the  eunite  programme  delivered  14  training 
sessions, including workshops on EU product and food safety regulations, reaching 
338 participants, alongside 13 engagement events that connected 356 participants with 
mentors,  peers,  and  experts.  32  businesses  were  supported  in  the  development  of 
tailored innovation  roadmaps, and 16  entrepreneurs received one-to-one  mentoring. 
The  Startups4Peace  2025  competition  further  contributed  to  cross-community 
collaboration, with 10 start-ups (4 Greek Cypriot and 6 Turkish Cypriot) benefiting 
from  mentoring,  bootcamps  and  seed  funding.  The  support  to  Turkish  Cypriot 
businesses  was  complemented  by  broader  efforts  to  introduce  local  legal  texts  on 
product  safety  aligned  with  EU  standards  and  an  EU-aligned  market  surveillance 

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system and risk-based controls on locally manufactured goods in the Turkish Cypriot 
community.  

The  Commission  also  continued  its  partnership  with  the  World  Bank  to  support 
economic  convergence  across  Cyprus.  The  World  Bank  provided  macroeconomic 
reporting,  supported the  trade and business  environment and improved statistics.  In 
2025,  two  key  assessment  reports  were  carried  out  on  quality  infrastructure  in  the 
Turkish  Cypriot  community  and  labour  mobility;  these  will  be  completed  in  2026, 
together with implementation roadmaps. The EU’s sustained investment in economic 
development  and  convergence  is  helping  transform  the  business  environment  and 
individual businesses and laying the groundwork for a more dynamic, resilient Turkish 
Cypriot  private  sector  that  complies  with  EU  standards  and  is  ready  to  seize  the 
opportunities of the EU single market. 

The  bicommunal  Halloumi/Hellim  EU  PDO  scheme  continued  to  be  implemented 
throughout  2025.  Once  fully  in  place,  it  has  the  potential  to  generate  substantial 
economic  benefits  for  Turkish  Cypriot  Halloumi/Hellim  producers  too.  By  2025,  4 
Turkish Cypriot producers and 24 farms were PDO-certified. The start of animal health 
and food safety inspections in the non-government-controlled areas was significantly 
delayed due to the delegation of powers to Bureau Veritas being postponed for more 
than a year until the end of March 2026. This negatively impacted the participation of 
Turkish Cypriot stakeholders in the PDO scheme and the ability to monitor the animal 
health status in the Turkish Cypriot community. Throughout the year, the Commission 
engaged with the authorities of the Republic of Cyprus to address these delays. 

Progress was made in the long-standing efforts to strengthen EU-aligned food safety 
and  animal  health  management,  agriculture  and  rural  development  in  the  Turkish 
Cypriot community. In 2025, the first ever sheep and goat breeding programme was 
launched,  and  the  Agricultural  Knowledge  and  Innovation  System  (AKIS)  in  the 
Turkish Cypriot community brought new opportunities to this key economic sector. 
The  EU’s  long-term  assistance  was  instrumental  in  helping  the  Turkish  Cypriot 
community to rapidly implement emergency actions in response to the foot-and-mouth 
disease outbreak in December 2025.  Considering the severity of the disease and its 
island-wide economic repercussions, long-term EU support for this sector remains a 
priority. 

In 2025, the Commission continued its support to the education sector, focusing on 
vocational  education  and  training  (VET)  and  teacher  training.  A  new  technical 
assistance  project  was  launched  to  establish  the  following  systems  in  vocational 
education  schools:  one  for  quality  assurance,  one  for  credit  passing,  and  one  for 
accreditation. This builds on previous significant work in VET reform and curriculum 
development.  The  project  on  ‘Improving  teaching  and  learning  through  continuous 
professional development and an inspection mechanism’, which concluded in 2025, 
had a positive impact on the modernisation and decentralisation of teacher training in 
the community. The project’s main result was to develop over 100 modules in four 
key areas: effective teaching and learning, inclusive education, safe schools and school 
leadership. The project is currently being implemented, but challenges persist due to 
underdeveloped legal frameworks, such as the lack of definition for the teacher trainer 
role, responsible for training teachers on the new modules. Efforts to address this legal 

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challenge remain a priority in this sector and support is being provided through the 
Technical Assistance and Information Exchange instrument (TAIEX). 

In 2025, the Commission continued to provide support to boost trade across the Green 
Line. Despite these efforts, Green Line trade decreased by 5% to EUR 14.4 million in 
2025,  mainly  due  to  price  increases  in  the  Turkish  Cypriot  community.  No  new 
processed foods of non-animal origin were allowed to be traded over the Green Line 
during  the  year.  The  business  community  showed  great  willingness  to  improve 
compliance with  EU standards. This  was demonstrated by  an increasing  number of 
inquiries addressed to the EU One Stop Shop (EU OSS) for Green Line trade, which 
provides knowledge, support and networking opportunities to businesses and traders 
interested or involved in Green Line trade. Since the start of the initiative in 2023, the 
EU OSS has provided tailor-made support to over 100 traders. 

4.2.2.  Objective 2: Developing and restructuring of infrastructure 

Since 2006, significant EU funding has been provided to improve infrastructure in the 
Turkish Cypriot community. In 2025, an additional 153 kilometres of sewerage pipes 
were installed to replace damaged septic tanks, which could contaminate groundwater. 
More  recent  investments  included  water  management  systems  and  wastewater 
networks, energy efficiency measures, and air quality and noise measurement systems. 
Equally  important  bicommunal  infrastructure  projects  were  started,  such  as  the 
expansion of the Agios Dometios/Metehan crossing points and the rehabilitation of the 
Pedieos/Kanlidere river linear park. 

Structural  challenges  linked  to  the  operation  of  the  landfill  in  the  Turkish  Cypriot 
community  continued  and  became  more  acute  in  2025.  The  poor  operation  and 
management of the  landfill  facility was not  systematically corrected, leading  to  the 
landfill being almost completely full and compromising the sustainability of overall 
waste management in the Turkish Cypriot community. 

To improve and protect the environment, the Commission continued  supporting the 
Turkish  Cypriot  community  by  completing  the  renovation  of  the  local  air  quality 
network  and  water  monitoring  capabilities.  In  addition,  the  Commission  funded  an 
assessment  of  heavy  metal  concentration  in  soil,  groundwater  and  crops  from  the 
Morphou plain. These activities are essential to improving the capacity of local bodies 
to monitor, evaluate and foster the preservation of natural resources while minimising 
risks to human health and biodiversity. 

The  United  Nations  Development  Programme  (UNDP)  continued  to  implement  the 
EU’s  Local  Infrastructure  Facility  (LIF)  through  ongoing  contribution  agreements 
with the Commission, totalling over EUR 37 million. The LIF supports the preparation 
and implementation of essential infrastructure investments, such as: (i) improving the 
sewage system in the area of Mandres/Hamitköy; (ii) installing water tanks, pumping 
systems and solar panels in Lefka/Lefke; (iii) providing sports facilities and equipment 
in  multiple  schools;  and  (iv)  building  a  septage  acceptance  unit  for  the  Mia 
Milia/Haspolat wastewater treatment plant. 

4.2.3.  Objective 3: Fostering reconciliation, confidence-building measures, and support to 

civil society 

Opportunities for bicommunal dialogue, reconciliation and trust-building continued to 
be provided through confidence-building initiatives under the auspices of the United 
Nations. This includes the Committee on Missing Persons in Cyprus (CMP) and the 
bicommunal  Technical  Committees,  as  well  as  the  work  of  the  Cyprus  Dialogue 

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Forum,  civil  society  organisations  and  the  scholarship  programme  offered  in 
partnership with the United World Colleges (UWC). 

In 2025, the EU allocated EUR 2.6 million to the CMP, maintaining the steady level 
of  support  since  2006  and  thereby  contributing  substantially  to  peacebuilding.  This 
brings  the  EU’s  total  contribution  to  the  CMP  to  EUR 41.1  million.  This  funding 
represents approximately 80% of the CMP’s total operational budget, covering critical 
laboratory  and  field  activities.  By  the  end  of  2025,  the  CMP  had  exhumed  1 714 
remains and identified 1 063 of the 2 002 missing persons it is investigating. However, 
as time passes, CMP investigations and excavations grow increasingly complex and 
require sustained funding. 

The aid programme continued to support the 13 Technical Committees (bicommunal 
bodies  set  up  under  UN  auspices),  which  operate  under  the  direct  guidance  of  the 
leaders of the two communities. These committees fulfil a dual mandate: facilitating 
political negotiations while fostering practical cooperation to improve the day-to-day 
lives of both communities. 

The Technical Committee on Cultural Heritage (TCCH) has consistently received EU 
funding  since  2011.  This  financial  support  has  promoted  reconciliation  and  cross-
community  collaboration  by  safeguarding  culturally  significant  sites,  including 
religious  monuments  and  cemeteries.  By  the  end  of  2025,  the  TCCH  had  received 
approximately EUR 32.5 million in EU funding, enabling the conservation, structural 
reinforcement, physical protection or restoration of over 200 sites across the island. To 
encourage public interest, the programme has developed a digital platform for virtual 
site tours and established a Heritage Youth Ambassadors initiative to engage young 
Cypriots in the preservation and promotion of their cultural heritage. 

The aid programme also provided targeted assistance to the remaining 12 Technical 
Committees  through  a  dedicated  support  facility.  Between  2023  and  2025, 
EUR 1 million was used by eight committees, funding a diverse range of initiatives, 
from technical cooperation on policy issues (e.g. pest control) to community outreach 
events (e.g. a bicommunal photo exhibition). The impact of these committees has been 
constrained by an unfavourable political climate and operational limitations, but their 
continued existence as a collaborative platform remains significant. 

In 2025, the programme awarded scholarships to an additional 9 Greek Cypriot and 9 
Turkish Cypriot students, enabling them to enrol at the United World Colleges (UWC). 
Since  its  inception,  the  scheme  has  supported  82  outstanding  young  Cypriots  in 
following  a  two-year  International  Baccalaureate  programme,  which  seeks  to  unite 
individuals in the pursuit of peace and a sustainable future. 

The scholarship initiative was complemented by youth engagement activities and short 
courses in Cyprus, reaching over 450 young people by the end of 2025. These efforts 
empowered participants to drive positive societal change in their communities. 

Support for civil society continued in 2025. The Civic Space and the Grant Support 
Team  projects  were  successfully  completed  and  a  follow-up  project  merging  these 
services started in December 2025 with a budget of EUR 2.3 million. Over the next 
two  and  a  half  years,  the  upgraded  Civic  Space  will  continue  to  provide  technical 
assistance to civil society organisations to build their capacities, including in managing 
and  implementing  EU  funds.  Its  objectives  include  promoting  an  enabling 
environment  for  the  development  of  civil  society  and  encouraging  networking  and 
joint actions with Greek Cypriot and other EU civil society organisations (CSOs). With 

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EU support, local CSOs successfully completed projects addressing, for example, the 
rights of sexual minorities, and promoting the employment of people with disabilities 
and ex-convicts. The Commission also facilitated cooperation among Greek Cypriot 
and  Turkish  Cypriot  CSOs  in  the  areas  of  human  rights  violations,  fighting  human 
trafficking, culture, youth and engagement in social actions. 

(i)  environmental  protection  and  sustainable  development; 

Under  the  ninth  Cypriot  Civil  Society  in  Action  grant  scheme,  16  grants  totalling 
EUR 2.22  million  were  awarded.  The  selected  projects  cover  important  areas, 
(ii) 
including: 
reconciliation; (iii) confidence building; and (iv) promoting the participation of civil 
society in the settlement process. Other crucial projects take forward work on women’s 
empowerment and support for the victims of gender-based violence, youth advocacy, 
health rights, animal rights and creating an enabling environment for CSOs. 

In 2025, the Cyprus Dialogue Forum – which brings together political parties, trade 
unions,  business,  professional  and  employer  associations  and  CSOs  from  both 
communities  –  continued  its  work  with  EU  funding.  The  Forum  organised  several 
meetings of its political task group, which is composed of politicians from most parties 
in the two communities. Among these meetings, the group held a discussion with the 
EU’s  Special  Envoy  for  Cyprus,  Johannes  Hahn.  The  Forum’s  labour  task  group 
launched its Labour Market Guide, a trilingual open-access resource that consolidates 
key  employment  and  economic  statistics  from  both  communities  on  the  island.  In 
addition,  the  EU-funded  Human  Rights  Platform  continued  to  carry  out  activities 
focused  on  gender  equality,  combating  human  trafficking,  refugee  rights,  LGBTI+ 
rights, and freedom of association, expression and press. 

4.2.4.  Objective 4: Bringing the Turkish Cypriot community closer to the EU 

Since 2022, the Commission has been partnering with the Goethe-Institut to implement 
the EU Scholarship Programme for the Turkish  Cypriot community. A total of  142 
scholarship  grants  were  awarded  to  Turkish  Cypriot  students  during  the  2024/2025 
academic year to study in an EU Member State. Furthermore, an alumni strategy was 
developed  to  enable  alumni  to  network,  engage  and  harness  their  skills  and 
opportunities,  as  well  as  to  increase  the  number  of  them  returning  to  the  Turkish 
Cypriot community as professionals. 

Since 2007, 2 418 scholarships  have been awarded to  students,  covering  more than 
100 universities and 23 EU countries. These scholarships support: (i) students during 
their  first  year  of  undergraduate  studies;  (ii)  graduate  students  in  their  master’s  or 
doctoral  programmes;  and  (iii)  researchers  and  professionals  in  further  developing 
their language and professional skills across EU Member States. 

The EU InfoPoint is managed by the EU Programme Support Office. In 2025, through 
its  online  and  offline  activities,  it  achieved  a  high  level  of  visibility  and  increased 
awareness of the aid programme’s impact and the EU’s role in the settlement process. 
The  EU  InfoPoint  and  other  EU-funded  projects  organised  more  than  350 
communication and visibility activities in 2025, including the first bicommunal Europe 
Day celebration, which attracted around 5 000 participants. During this period, around 
30  factsheets,  booklets  and  audiovisual  materials  were  produced.  Building  on  this 
strong engagement, there is clear and growing interest from the community for more 
EU-related  information  events  and  outreach  activities  in  the  coming  period.  This 

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interest reflects the Turkish Cypriot public’s continued demand for accessible, reliable 
and timely information about the EU and its support. 

4.2.5.  Objectives 5-6: Preparing the Turkish Cypriot community to introduce and implement 

the acquis 

The TAIEX instrument is used to implement objectives 5 and 6 of the Aid Regulation. 
It helps prepare the Turkish Cypriot community for implementing the acquis once the 
suspension of its application is lifted on entry into force of a comprehensive settlement 
for Cyprus. 

The TAIEX instrument remains an important tool for achieving the aid programme’s 
objectives and supporting trade across the Green Line. TAIEX activities were carried 
out in 13 sectors of the EU acquis to bring the Turkish Cypriot community closer to 
EU  standards  and  procedures.  In  total,  81  expert  missions  and  one  workshop  were 
organised. In addition, efforts continued to improve a database of all legal texts drafted 
with TAIEX support and to ensure that high-quality translation and interpretation in 
the Turkish Cypriot community continued. 

Support for trade across the Green Line (under Council Regulation (EC) No 866/2004) 
remained  the  most  active  and  resource-intensive  area  of  TAIEX  activities. 
Commission-mandated 
independent  experts  carried  out  regular  phytosanitary 
inspections of fresh fruit and vegetables, plant products, potatoes, honey and fishing 
vessels to ensure that EU standards for traded food products were met. In April 2024, 
the Ministry of Health  of the Republic of Cyprus  issued a circular permitting  trade 
across  the  Green  Line  in  six  further  categories  of  processed  food,  namely  coffee, 
lemonade, frozen vegetables, frozen potatoes, foods pickled in vinegar and dried jute 
leaves. This brings to 14 the number of processed food products of non-animal origin 
that are permitted. TAIEX experts ensured EU-level standards and quality were met 
through  compliance  checks  on  processed  food  facilities  in  the  non-government-
controlled areas. 

4.3. 

Financial execution (contracts and payments) 

4.3.1.  Contracting 

In 2025, the Commission signed legal commitments amounting to EUR 29.2 million. 

4.3.2.  Payments 

Payments in 2025 totalled EUR 38.5 million (EUR 40.4 million in 2024). 

4.4.  Monitoring 

The  Commission  is  directly  responsible  for  implementing  most  projects  (direct 
management). The level of monitoring by Commission staff is very high, with regular 
contacts  with  contractors,  spot-check  visits,  site  meetings  and  steering  committee 
meetings,  as  well  as  cooperation  with  local  coordinators  of  EU  funding.  The  grant 
support team continued to provide technical assistance to support the Commission in 
monitoring  the  implementation  of  grant  contracts,  while  also  assisting  grant 
beneficiaries  in  applying  EU  rules  on  implementing  grant  contracts,  including 
secondary procurement rules. 

The Commission also implements several contracts through indirect management. The 
implementing  bodies,  such  as  the  UNDP,  the  World  Bank,  the  Goethe-Institut  and 
GIZ,  report  to  the  Commission  in  line  with  the  respective  contribution  and 

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administration  agreements.  The  Commission  is  closely  involved  in  the  day-to-day 
monitoring of these activities. 

4.5. 

Audit and controls 

Audits conducted by the European Court of Auditors in 2025 on projects funded under 
the aid programme did not result in any findings. The Commission’s Internal Audit 
Service did not audit any projects under the aid programme in 2025. 

4.6. 

Evaluation 

An independent evaluation of the aid programme covering the 2013-2018 period was 
published  in  2022.  The  results  of  the  evaluation  were  satisfactory.  The  evaluation 
concluded that the programme remains relevant and that its impact has been positive. 
It  confirmed  the  EU  added  value  and  credited  the  programme  with  keeping  the 
prospect  of  reunification  alive.  It  also  underlined  the  general  consistency  and 
efficiency of the programme. At the same time, the evaluation highlighted that the aid 
programme  alone  cannot  achieve  the  reunification  of  Cyprus,  for  which  the  two 
Cypriot communities remain responsible. 

An evaluation of the aid programme covering the 2019-2024 period was launched in 
January 2026. The result of the evaluation is expected to be published in 2027. 

4.7. 

Information, publicity and visibility 

Overall, more than 350 visibility and communication activities were organised in 2025 
to  showcase  the  EU’s  contribution  to  the  development  of  the  Turkish  Cypriot 
community and the Cyprus settlement process. 

4.8. 

Consultations with the Government of the Republic of Cyprus 

Regular meetings were held with representatives of the Government of the Republic 
of Cyprus. The Commission continues to rely on the Government’s cooperation for 
verifying  property  rights  and  facilitating  the  work  of  the  bicommunal  Technical 
Committees.  The  Commission  also  meets  regularly  with  the  Ministry  of  Foreign 
Affairs and the Permanent Representation of the Republic of Cyprus to the EU. 

5. 

CONCLUSIONS 

In  line  with  the  Aid  Regulation  objectives,  the  Commission  continues  to  deliver 
assistance  to  facilitate  the  reunification  of  Cyprus  by  encouraging  the  social  and 
economic development of the Turkish Cypriot community and bringing it closer to the 
European Union. 

During 2025, assistance continued to focus on areas that present challenges for future 
compliance with the acquis, while also ensuring that emerging needs are addressed in 
an efficient and timely manner. 

Emphasis  on  the  relevance,  maturity,  ownership  and  sustainability  of  projects  has 
yielded positive results and will  continue to  guide future programming  discussions. 
Efforts  will  also  continue  to  achieve  greater  and  long-term  impact  in  priority  areas 
through strategic action. The Commission stands ready to deploy resources as needed, 
including  under  the  aid  programme,  to  support  settlement  negotiations  under  UN 
auspices and further developments linked to the process. 

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