A European Union-backed entrepreneurship programme in Cyprus is expected to generate around 800 new businesses and more than 1,600 jobs, underscoring the island’s continued use of cohesion-policy funding to support enterprise, research, transport and urban renewal.
A Wider Investment Push Beyond Start-Ups
The figures were highlighted by Themis Christophidou, Director-General of the European Commission’s Directorate-General for Regional and Urban Policy, during the Cyprus Forum 2026 in Nicosia. But official programme data show the projected business and employment gains relate to the full €50 million New Entrepreneurship Activity Scheme, not the initial €30 million allocation alone.
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According to the official THALIA 2021–2027 programme, the scheme was launched in two rounds: an initial €30 million call in 2021, followed by a further €20 million round in 2024. Taken together, the programme estimates the combined funding will support 800 new businesses and create more than 1,600 jobs.
Targeting Sustainable Growth And New Entrants
The scheme is co-financed through EU cohesion funds and the Republic of Cyprus, with a focus on encouraging new, sustainable and competitive businesses. Particular emphasis is placed on young people and women, reflecting a broader policy effort to widen access to entrepreneurship.
Funding can be used for a range of start-up costs, including equipment, premises, renovations and promotional activity — all the practical inputs that often determine whether a promising idea becomes a viable business.
Infrastructure, Culture And Digital Services Also In Focus
Christophidou also outlined a broader pipeline of cohesion-policy investments currently being rolled out across Cyprus. These include €13 million for engineering research laboratory facilities at the University of Cyprus, almost €3 million for the restoration of three historic municipal buildings in Limassol, and €2 million for Salina Municipal Park in Larnaca.
In transport, €44 million is being directed toward public passenger infrastructure and the transition to electric mobility, a sign that cohesion funding is increasingly being linked to long-term competitiveness as well as environmental goals.
Nearly €2 million has also been invested in the Evagoras integrated information system, which is intended to expand digital services delivered by municipalities. The EU funds portal places the project’s total budget at €2.9 million, with the European Union contributing 60 per cent.
The Commission’s “Right To Stay” Strategy
Christophidou also referred to the European Commission’s emerging “Right to Stay” strategy, which is designed to address the economic and demographic pressures pushing people — especially younger and skilled workers — away from rural, remote and declining regions. The policy is aimed at improving the conditions that allow people to remain in their home regions by strengthening access to jobs, housing, education, public services, transport and digital connectivity.
She has previously framed the initiative as a response to territorial disparities that leave many Europeans feeling they have little realistic choice but to move elsewhere.
Cohesion Policy At The Center Of The EU Debate
The issue has already gained prominence during Cyprus’ EU Council presidency. Earlier this year, Finance Minister Makis Keravnos said more than 60 million EU citizens lived in regions where GDP per capita in 2023 remained below its 2000 level, arguing that cohesion policy would remain central to addressing widening regional gaps.
The Commission’s strategy is expected to feed into negotiations over the EU’s next long-term budget for 2028–2034, where cohesion funding is increasingly being tied to competitiveness, employment, connectivity and the ability of regions to retain both people and investment.
In Cyprus, that link is already visible: cohesion money is not just financing infrastructure and institutions, but also shaping the country’s capacity to grow businesses, create jobs and reduce the forces driving talent away.
