Cyprus will receive a total of €1.3 billion EU funds for the programme period of 2014-2020, rendering the island as a net recipient for the first time since its accession in 2004.
The EU Court of Auditors presented in Brussels Tuesday its audit on the 2014 budget, marking the commencement of the new 2014-2020 Multiannual Financial Framework, in the context of which Cyprus will receive €1.3 billion in EU funds.
A country is a net recipient when EU funding exceeds the country`s contributions to the EU budget.
According to data, the ratio of EU funding per citizen in Cyprus amount to €1,560 compared with the EU average of €1,500.
The distribution of funds per envelope
MFF 2014-2020 εκατ €
Cohesion Policy788
Common Agricultural Policy Pillar 1351
Common Agricultural Policy – Pillar 2132
Maritime Policy and Fisheries40
Total1,311
Under the 2007 – 2013 MFF, Cyprus contribution to the EU budget in 2013 amounted to €160 million, which corresponds to 0.12% of the total EU own resources. However following a Gross National Product revision in 2014, Cyprus will pay an additional €54 million by the end of 2015. Cyprus along with the Netherlands had the highest revision in their contribution to the EU budget in 2014 that amounted to an increase of 41%.
According to the European Commission`s figures, Cyprus` absorption capacity by October 2015 reached 90%, slightly over the EU-average of 87%.
Furthermore, in the ECA`s 2014 audit, Cyprus` electronic public procurement system has been considered as a best-practises example.
Not just spend but invest
Speaking during both during a press conference as well as during a meeting with the European Parliament`s Committee on budgetary control, Vitor Caldeira called for a “wholly new approach” if the EU budget would address the challenges currently facing the EU such as the refugee crisis, generating jobs and growth and meeting energy needs.
He noted that decision-makers must align the budget better with the EU`s long-term strategic priorities, rendering it more capable of responding to crises, spending schemes have clear targeted results, managers should make sure that the money spent complies with the rules.
This new approach, he added, must ensure investments that better match the Union`s priorities, simpler rules framed to achieving results, and more efficient management of resources.
The EU Vice President, Commissioner for Budget and Human Resources, Krtistalina Georgieva subscribed to Caldeira`s remarks, but pointed out that changing the EU`s financial management culture cannot happen over night.
“New realities require new action. We at the Commission are working to align the budget with priorities, focus on results and strengthen controls. However, as we all know, changing the EU`s financial management culture and practice, as well as achieving a measurable impact, does not happen overnight,” she said during the meeting of the EP` budget control committee.