Cyprus could reallocate funding from its Thalia 2021-2027 programme to help tourism businesses cope with the economic impact of conflict in the Gulf and broader instability in the Eastern Mediterranean, the European Commission has confirmed.
Brussels Signals Flexibility
The clarification came in response to a parliamentary question from Cypriot MEP Michalis Hadjipantela, who said the regional crisis was already leading to booking cancellations, weaker demand and growing uncertainty across the tourism sector.
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Hadjipantela argued that the disruption was placing pressure on hotels and smaller tourism businesses, and asked whether existing EU funding mechanisms and state aid rules could be used more flexibly to support affected companies.
Thalia Funding Could Be Redirected
The Commission said Cyprus may use resources available under the Thalia 2021-2027 cohesion policy programme to support small and medium-sized enterprises, including tourism businesses.
It added that the Cypriot authorities could redirect funding through an amendment to the programme and confirmed that discussions with the relevant government departments were already under way.
Call For Swift Action
Hadjipantela welcomed the Commission’s response, saying it confirmed that European support mechanisms were available.
He urged the government to move quickly with the necessary amendments so that Thalia funding could be made available to businesses affected by the regional crisis.
“We must not allow available funds from the Thalia programme to remain unused,” he said, adding that businesses should not have to bear the financial consequences of international instability alone.
