Thalia Program: €1,8 billion in the Cypriot economy until 2027

President Anastasiades' speech was the same

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€1,8 billion will be channeled for the development of the Cypriot economy in the period up to 2027, says the President of the Republic, Nikos Anastasiadis, in a post on Twitter.

In the post it says:

"An important day for Cyprus. Today, with the approval of the #THALEIA 2021-2027 Program, we are laying the Foundations of Change, Prosperity, Equality and Development. €1,8 billion will be channeled for the development of the Cypriot economy in the period up to 2027"

The same speech of President Anastasiades:

Today could only be characterized as a new important milestone in the concerted efforts we are making to lead our country to creative and productive reconstruction and overall economic and social transformation within the framework of the "Cyprus-Tomorrow" Plan.

And this, because the approval of "THALEIA 2021-2027", which is a key component of the mentioned Plan, marks the official start of the new investment period of the Cohesion Policy, strengthening the foundations we have already laid, with the aim of further progress, prosperity, equality and development.

It is with particular pleasure that I warmly welcome the Commissioner for Cohesion and Reforms of the European Commission, Mrs. Eliza Ferreira to this special event.

Ms. Ferreira, your presence is a great honor for us and I believe that it is a tangible recognition of the fact that Cyprus is the first country in the European Union to receive final approval for the utilization of the overall financial envelope of the Cohesion Policy.

The above, in relation to the high performance in the absorption of European funds but also to the successful claim for increased funding, is due not only to the organized and targeted efforts of the Government and the close and constructive cooperation we have developed with the Commission, but also to the remarkable human resources of the Public Service for which I warmly thank and congratulate.

It also proves once again that little Cyprus can boast that it does not lack capabilities compared to the rest of the partners within the Union.

The total amount for the implementation of the "THALEIA" Program amounts to 1.8 billion euros, with a national contribution of 840 million euros.

A Program that aims to shape a robust and competitive economy through smart, digital and green investments, under conditions of healthy employment and social cohesion, in full alignment with the policies and objectives of the European Union.

In this context, the implementation of more than 120 projects and sponsorship plans in five policy axes is included which I will briefly present, as the competent Ministers will have the opportunity to analyze in detail in the coming days and weeks.

The first axis of policy, amounting to 312 million euros, concerns the transition to the digital age through the promotion of investments in the fields of Research and Innovation, Digital transformation and the strengthening of Entrepreneurship, thus adapting the development of the economy to the needs of modern seasonal.

The second policy axis, amounting to €783 million, is related to the rapid transition to the Green Economy, with sponsorship plans and investments in clean forms of energy, circular economy, biodiversity protection, strengthening urban mobility and tackling climate change.

Of these, 187 million euros will be allocated through the newly established Just Transition Fund for the further acceleration and penetration of Renewable Energy Sources in the country's energy mix, which we all recognize as an urgent priority for the immediate reduction of energy consumption costs in households and businesses, but also the implementation of our obligations to achieve climate neutrality.

The third axis of policy, amounting to 30 million euros, relates to the strengthening of the interconnectivity of the road network through the completion of the southern perimeter of Nicosia, but also the decongestion of traffic in the interurban network, with the installation of intelligent transport systems.

The fourth pillar, amounting to 424 million euros, is connected to the completion of our plans for the creation of a just and inclusive society, with a focus on further supporting those who need the assistance and protection of the State.

In addition to what has been implemented, there should be new programs for greater protection of those who need support from the State.

Investments are planned for employment and training plans for the unemployed and young people, as well as the activation of women in the labor market through tuition subsidies in nursery schools for children up to 4 years of age.

A plan which I am pleased to report will be implemented next September.

The pillar also includes school actions for social integration, especially for children with an immigrant background, social integration of people with disabilities through the operation of an Autism Center, creation of new supported living homes and strengthening of the disability assessment system, as well as providing food and material assistance to the needy.

The last axis is connected to the radical reform of the Local Government and the essential support of the Government in this collective effort, through the payment of resources of 182 million euros to the local Authorities to improve the quality of life of the citizens.

Resources to be allocated to upgrades of open public spaces and spaces for cultural activities, such as squares, parks, auditoriums and multi-purpose centers, but also to investments in urban mobility infrastructure through the creation of cycle paths and pedestrian paths.

As I have already mentioned, the provisions of the "THALEIA 2021-2027" Program should not be seen in isolation, but as complementary and as part of the broader and targeted vision of the Government for the legacy it will leave to the next generations through the "Cyprus - tomorrow", with the aim of completing the plans for the definitive treatment of the distortions and the holistic, reformist modernization of the State.

A Plan which also includes other important financial tools, such as the Recovery and Resilience Plan with total appropriations of 1.2 billion euros, the Common Agricultural Policy, as well as heaps of other European financial tools, which add up to a total amount of 4,4 billion euros.

Four billion euros of investment and reform actions, without counting the expected investments of more than one billion euros that will come from private investments or even the annual expenses of the next budgets that will be distributed according to the provisions of the new development model.

And limiting myself only to the "THALEIA" Program and the wider benefits it will bring to the entire economy and society, it is typical to mention that its implementation is expected to add an additional percentage of 2029% to the Gross Domestic Product by 6.0, while 8.500 new, well-paid jobs are projected to be created.

Without counting the additional and incremental related benefits that will arise from the rest of the financial instruments and the private investments that will arise.

In conclusion, I would once again like to express my absolute satisfaction for the approval of the well-documented, structured, excellently and impeccably costed policy program "THALEA 2021-2027".

And it could not be otherwise, as in the context of transparency and participatory democracy, the Program emerged as a result of the consultation and cooperation of the Government, political forces, Local Government Authorities, economic and social partners, scientific advisors, but of course also the European Commission and more specifically with Ms. Ferreira.

A Program which was also based on the recommendations of the Economy and Competitiveness Council and the Development Strategy of the State for the next 15 years entitled "Vision 2035".

As, of course, it would be remiss, Commissioner, if I did not thank you and the Services of the European Commission, both for the impeccable and close cooperation we have developed and for the constant support of Cyprus' requests for recognition of its special characteristics.

A support that was not limited to the selection of projects that meet local needs with the allocation of increased funds within the framework of the European Multiannual Financial Framework, but also extended to the immediate response to the request to redistribute resources of the Cohesion Policy to deal with the consequences of the pandemic and to support workers, businesses and vulnerable groups.

Once again, I congratulate those who contributed to the development of the "THALEIA" Program and invite them to continue with consistency and determination in the implementation of its investment actions, making full use of the funds amounting to 1.8 billion euros allocated to us, as Cyprus has done until today, considered as one of the first countries to absorb funds.