EC/Cyprus relations: financial and technical cooperation, 4th protocol

The Committee adopted the report by Mr Alexandros ALAVANOS (GUE/NGL, EL) which proposed that the European Parliament give its assent to the conclusion of the fourth protocol on financial and technical cooperation between the EC and Cyprus. The cooperation is to be allocated a financial envelope of ECU 74 m, namely ECU 24 m from the Community budget (ECU 22 m of non-refundable aid plus ECU 2 m in high-risk capital) and ECU 50 m in EIB loans, and is to have three major objectives: - to facilitate the economic transition of Cyprus towards integration in the European Union; - to promote the transfer of the acquis by adapting Cypriot national legislation, by training its public officials and by alerting national public opinion to European realities; - to promote a global settlement of the Cyprus question (financial support amounting to a maximum of ECU 12 m of non-refundable aid). The protocol provides for the financing of technical aid and training projects in a number of priority areas, such as the services sector, industry and agriculture: support for the restructuring and modernisation of the Cypriot economy (investment promotion, professional training, support for SMEs, etc.) with a view to creating jobs. It also provides for the strengthening of ties between Cypriot and European socio-economic operators by the promotion of exports, support for commercial policy reforms which are aimed at a greater integration in the economy of the European Union and cooperation in the field of science and technology (strengthening of ties between Cypriot and European research institutes on various EC research programmes). In addition, the protocol provides for cooperation in the environmental sector, the participation of Cyprus in Community framework programmes and, finally, the promotion of regional cooperation on a case-by-case basis. The protocol is to be valid until 31 December 1998. In the event that Cyprus accedes to the Union during this period, specific adaptations will be negotiated with that country. �