DAILY NEWS
Brussels, 04 July 2024
Commission receives Cyprus' third payment request under the Recovery and Resilience Facility
Today, the Commission has received the third payment request from Cyprus for €89.2 million in grants (€76.9 net of pre-financing).
Cyprus' third payment request concerns 12 milestones and 4 targets. It covers reforms that support investment initiatives, enhance the productivity and effectiveness of public administration, improve the system for issuing and transferring title deeds, and lead the digital transformation of the Cyprus Police Force.
The request also covers important investments in areas including health care, research and development, digitalisation of SMEs to help enhance their productivity, improving connectivity through the upgrade of internet infrastructure, and improving the monitoring of greenhouse gas emissions from Cyprus's agricultural sector.
The Commission will now assess the request and will then send its preliminary assessment of Cyprus' fulfilment of the milestones and targets required for this payment to the Council's Economic and Financial Committee.
Cyprus' overall recovery and resilience plan will be financed by €1.22 billion, of which €1.02 billion in grants and €200 million in loans. You can find more information on Cyprus' Recovery and Resilience plan on this page, which features an interactive map of projects financed by the Recovery and Resilience Facility (RRF), as well as on the RRF Scoreboard. More information on the process of payment requests under the RRF can be found in this document of questions and answers.
(For more information: Veerle Nuyts – Tel.: +32 229 96302; Quentin Cortes – Tel.: +32 229 64735)
EU assistance increases trade and free movement in Cyprus, supporting the island's reunification
Today, the Commission published two reports illustrating the European Union's continued support for Cyprus' reunification: the annual report on the implementation of the Green Line Regulation in Cyprus in 2023 (the ‘Green Line Report') and the annual report on the implementation of the Aid Programme for the Turkish Cypriot Community in 2023 (the ‘Aid Programme Report').
The Green Line Report shows that trade across the Green Line in 2023 increased by 9.6% to a record value of €16 million. 7.1 million authorised crossings were recorded in 2023, steadily increasing from 6.1 million in 2022.
The Commission welcomes the further measures announced by the Government of the Republic of Cyprus in January 2024, to admit another six processed foods of non-animal origin to Green Line trade (admitted in April 2024) and to increase staffing and reduce congestion at crossing points. These measures will positively contribute to Green Line trade going forward. 2024 also marked 20 years since the adoption of the EU's Green Line Regulation for Cyprus.
The second report adopted today relates to the Aid Programme. Since 2006, a total of €688 million in EU funding has been allocated to the Aid Programme, which supports Cyprus' reunification by financing confidence-building measures and supporting the socio-economic development of the Turkish Cypriot community. In 2023, €31.7 million was allocated for this purpose.
Thanks to this EU funding, the first three Turkish Cypriot Halloumi/Hellim producers and 15 milk farms were approved under the Protected Designation of Origin (PDO) scheme in 2023. The Commission assisted the Turkish Cypriot community in complying with EU food safety and animal welfare standards, a condition for placement of products on the EU market.
Three EU-funded infrastructure projects were also completed in the Turkish Cypriot community in 2023, including the construction of the Kormakitis Centre for Cooperation, a multi-cultural event venue available to all Cypriot communities, and the extension of the Morphou wastewater treatment plant, which has doubled the plant's capacity, safeguarding the environment and public health.
(For more information: Stefan De Keersmaecker – Tel.: +32 2 298 46 80; Laetitia Close – Tel.: +32 2 296 70 73)
Commission imposes provisional countervailing duties on imports of battery electric vehicles from China while discussions with China continue
Today, nine months after the initiation of an ex officio anti-subsidy investigation, the European Commission has imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China. Based on the investigation, the Commission has concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation has also examined the likely consequences and impact of these measures on importers, users and consumers of BEVs in the EU.
Consultations with the Chinese government have intensified in recent weeks, following an exchange of views between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao. Contacts continue at technical level with a view to reaching a WTO-compatible solution, which adequately addresses the concerns raised by the European Union. Any negotiated outcome to the investigation must be effective in addressing the injurious forms of subsidisation identified.
The individual duties applying to the three sampled Chinese producers are:
Other BEV producers in China, which cooperated in the investigation but were not sampled, are subject to the 20.8% weighted average duty. The duty for other non-cooperating companies is 37.6%.
Compared to the rates pre-disclosed on 12 June 2024, provisional duties were adjusted slightly downwards based on comments on the accuracy of the calculations submitted by interested parties. All the detailed findings of the investigation are reflected in the Implementing Regulation which is now published in the Official Journal.
More information can be found in the press release online.
(For more information: Balazs Ujvari - Tel.: +32 2 295 45 78; Ana Apse-Paese - Tel.: +32 2 298 73 48)
SME Performance Review 2024 shows SMEs driving job creation despite high inflation
The European Commission has published the 2024 SME Performance Review Report, which highlights the resilience of small and medium-sized enterprises (SMEs) in 2023, despite high inflation.
According to the report, SMEs have been drivers of job creation, outpacing large companies in employment growth in 11 of 14 industrial ecosystems. The highest growth rates were observed in the “tourism” and “digital” ecosystems (4.5% and 3.8% respectively). For the third consecutive year, employment growth is expected to continue in 2024, with a projected increase of 0.8%. However, this rapid employment growth has also led to a sharp increase in skills shortages for many SMEs, as the Commission's latest survey into businesses' access to finance has already demonstrated.
This edition of the report shows that the year 2023 was characterized by historically high inflation affecting all businesses, particularly SMEs. Inflation rates were higher than growth rates in 2023, leading to a decline of -1.6% in real value added for SMEs in the non-financial sector in 2023, with a further decline of -1. 0% forecast for 2024. However, SMEs in Malta, Spain, Greece, Portugal, Belgium, Denmark and Cyprus recorded real growth, despite high inflation rates also in these countries.
Microenterprises, i.e. businesses with fewer than 10 employees, performed well, with the smallest decline in real growth (-0.4%) and an increase in employment of 2. 3%. This confirms the trend observed in previous reviews of SME performance.
In the medium term, SMEs are on the path to growth. Between 2021 and 2023, SMEs recorded a 4.5% growth in real value added, a 4.8% increase in employment and a 5.4% increase in the number of businesses.
Since 2008, the Annual SME Performance Review has monitored the economic performance of SMEs and the progress made by Member States in implementing the EU SME Strategy. More information is available on the SME Performance Review 2024 webpage.
(For more information: Johanna Bernsel – Tel.: + 32 2 298 66 99; Federica Miccoli – Tel.: +32 2 295 83 00)
EU invests €325 million to support Europe's semiconductor innovation ecosystem
Today, the Chips Joint Undertaking (Chips JU) has announced the opening of calls to support semiconductor research and innovation initiatives in photonics, competence centres, and a cloud-based semiconductor design platform as part of the Chips for Europe initiative under the Chips Act. The total EU funding available for these calls is €325 million, which should be topped up by additional financing from participating states of the Chips JU.
This new round of calls will further support Europe's semiconductor industry by establishing a pilot line for photonic integrated circuits (PICs). These semiconductors use light to process and transmit information at higher speeds while using less energy. This will be particularly important for the next generation of high-performance computers, high-speed communications and data centres.
The funding will also support the creation, roll-out and networking of 'chips competence centres' in participating states. These competence centres will provide access to technical expertise and experimentation in semiconductors, helping companies, SMEs in particular, to improve design capabilities and develop their skills. Finally, the upcoming calls will fund a project to create a cloud-based online design platform that will allow users, particularly academia, start-ups and SMEs, to design and develop their new chips, and to help bring their designs to market.
Industrial players and research organisations can apply for funding through the Funding and Tender Opportunities portal and the Chips JU website. The closing dates for proposals for the photonics pilot line, the competence centres, and the design platform are respectively on 17 September 2024, 2 October 2024, and 10 October 2024 – all at 17:00 CEST.
Applicants can apply for funding through the Funding and Tender Opportunities portal and the Chips JU website.
Detailed information about the calls and application process will be given via information sessions on 11-12 July 2024.
(For more information: Thomas Regnier – Tel.: +32 2 299 10 99; Roberta Verbanac – Tel.: +32 229 82498)
Commission to invest more than €210 million in cybersecurity, digital capabilities and technologies under the Digital Europe Program
The Commission today launched calls worth more than €210 million under the Digital Europe Program for proposals to strengthen cybersecurity and digital capabilities across the EU.
Regarding cybersecurity, 35 million euros will be dedicated to projects to protect large industrial installations and critical infrastructure. An additional €12.8 million will be invested to continue the establishment, support and expansion of national and cross-border cybersecurity operations centers. 35 million euros will be dedicated to the deployment of cutting-edge cybersecurity technologies and tools. €20 million will be used to support Member States in implementing EU cybersecurity legislation and national cybersecurity strategies. The deadline for applications for all cybersecurity-related funding is January 21, 2025.
Regarding digital skills capabilities, €55 million will be invested in advanced digital skills, for the design and implementation of higher education programs in key areas of digital technologies. To help Member States achieve the goals of the Digital Decade, €25 million will be invested in activities to facilitate the deployment of different multinational projects through consortia for a European digital infrastructure. An additional €20 million will be allocated to the further development of European local digital twins (digital versions of local communities). 8 million euros will be invested in European digital media observatories to finance the work of independent regional hubs to analyze and combat disinformation in digital media. The deadline for applications for all this digital skills funding is November 21, 2024.
Further calls will be published next year after the adoption of the work program for a Digital Europe 2025-2027.
(For more information: Thomas Regnier — Tel.: + 32 2 299 10 99; Roberta Verbanac — Tel.: + 32 229 82498)
The European Commission is committed to personal data protection. Any personal data is processed in line with Regulation (EC) 2018/1725. All personal information processed by the Directorate-General for Communication / European Commission Representations is treated accordingly. If you do not work for a media organisation, you are welcome to contact the EU through Europe Direct in writing or by calling 00 800 6 7 8 9 10 11.
Athanasios ATHANASIOU
Press Officer / Political Reporter
European Commission
Representation in Cyprus
EU House, 30 Vyronos Avenue, 1096 Nicosia
Tel: +357 22 81 75 76 Mob: +357 99 363753
Twitter: @aathans