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Cyprus: Harnessing €1.8 Billion EU Funds for Ambitious Development by 2029

Cyprus has embarked on an ambitious journey with the THALIA 2021-2027 programme, securing a record €1.8 billion, the largest since joining the EU in 2004.

With the European Commission’s approval in July 2022, €969 million in EU funds will complement the rest from Cyprus’ national budget. Already, €600 million has been put to work in over 100 projects, either completed or in progress.

Projections are promising with a potential 6% GDP boost and 8,500 new jobs by 2029, concentrating on green, digital, local development, job creation, and social inclusion initiatives.

Building on the momentum from the 2014-2020 period, Cyprus led the EU in fund absorption, channeling €880 million for public investment, fueling 24,000 jobs and 6% GDP growth.

In Nicosia, projects have revitalized Eleftheria Square, upgraded Aglantzia Avenue, and restored the Municipal Theatre. Larnaca has seen new municipal markets and cultural spaces.

Paphos projects include the Ibrahim Khan restoration and Kennedy Square upgrades. Limassol focuses on port enhancements.

Key undertakings include the Stelios Ioannou Library and the Green Points network across Cyprus. Future THALIA projects aim at energy efficiency, local growth, youth entrepreneurship, and social inclusion.

With 160 projects expected by 2029, Cyprus is set to make a transformative leap forward.

Cyprus Livestock Industry Navigates Hemorrhagic Fever Impact

The recent outbreak of hemorrhagic fever has stirred concern among professionals in the livestock sector. Industry insiders report a modest 10% increase in lamb prices, while both production and export volumes of halloumi remain resilient.

Market Dynamics And Price Adjustments

Kostas Leivadotius, President of the Pan-Cypriot Meat Retailers Association, said supply has tightened following movement restrictions. Lamb prices increased from about €11 to €12 after detection of the virus, while pork and beef prices remain unchanged.

Production And Slaughter Statistics

Leivadotius said around 700,000 animals are slaughtered annually in Cyprus, including approximately 20,000 cattle, 450,000 pigs, and 200,000 lambs, with additional supply covered through imports. During last year’s Easter period, more than 50,000 lambs were processed.

Logistical Challenges And Regulatory Responses

Movement restrictions are affecting transport and processing of livestock. Leivadotius said slaughterhouse operations have been disrupted, prompting discussions with authorities on measures to improve transport and processing efficiency.

Regional Implications And Import Adjustments

Following reported cases on Lesvos, Cyprus suspended imports of meat from the area. Imports from Lesvos are typically limited, but alternative supply sources are now being considered.

Maintaining Production Amid Health Concerns

Emphasizing the need for decisive action, Leivadotius urged industry stakeholders and the wider public to heed expert guidance on disease containment. He underlined that accelerated vaccination efforts and stringent movement controls are essential to curb the spread of the virus, thereby allowing production levels to return to normal.

Stability In Halloumi Exports

Michalis Koullouros, representative of the Cyprus Cheese Producers Association, said halloumi exports and prices remain stable, with producers continuing to meet domestic and international demand. Around 80% of Cyprus’ milk production is used for halloumi, with exports accounting for €350 million of a €400 million market. He added that significant livestock losses could affect production levels if the situation worsens.

Future Considerations And Industry Priorities

Looking ahead, industry experts remain watchful of the potential reevaluation of the Protected Designation of Origin (PDO) timeline for halloumi. Although discussions on revising the current schedule have not yet taken center stage, the primary focus now is on containing the outbreak and reinforcing support for livestock producers. This strategy is essential for restoring production and ensuring the industry’s long-term viability.

In summary, while the outbreak of hemorrhagic fever has led to some immediate market adjustments, decisive regulatory action and industry resilience may well steer Cyprus’ livestock and dairy sectors back on track in the near future.

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