How the Recovery Plan will make the economy more resilient and competitive

A significant part of Cyprus’ Recovery and Resilience Plan has been dedicated to strengthening the resilience and competitiveness of the economy, with €368.8 million, or 30.1% of the total budget devoted to this.

One of the main pillars of strengthening the resilience and competitiveness of the economy is the new development model and the diversification of the economy, with a budget of €125.8 million and which occupies 10.3% of the total.

In this context, reforms and investments will be launched to make the Cypriot economy more competitive, with the parallel objectives of strengthening research and innovation, as well as the competitiveness of businesses.

Other parts of the efforts to strengthen the resilience and competitiveness of the Cypriot economy include the modernisation of the public service and local government, the reform of the judicial system, the fight against corruption, and ensuring financial and fiscal stability.

The aforementioned reforms and investments are presented below, as they have emerged from the Recovery and Resilience Plan’s list of interventions.

• New development model and diversification of the economy (budget: €125.8 million or 10.3% of the total)

Reform 1: Transition agricultural practices from the 20th to the 21st century through the creation of a national Center of Excellence in Agricultural Technology.

Reform 2: Electronic platform to improve trade and information symmetry in the fresh produce supply chain.

Reform 3: Genetic improvement of the sheep and goat population of Cyprus.

Investment 1: Construction of collective infrastructure in Pentakomos to serve marine aquaculture units (port and land facilities).

Investment 2: Strengthening the existing isotopic databases of Cypriot food and beverages, with the aim of ensuring the identity of products, through the development of a platform using Blockchain technology, aiming to provide assurance to consumers and other interested parties about the authenticity and quality of local and traditional food/drinks.

Investment 3: Upskilling the existing farming community and making the future workforce more professional through investment in human capital.

Investment 4: Creation of a "Made in Cyprus" National Commercial Identity (brand) and promotion of Cypriot products, such as halloumi. In this context, advisory studies will be drawn up and action plans will be approved for the creation of a "Made in Cyprus" National Commercial Identity (brand) with the aim of assisting businesses to promote and promote their Cypriot products and services and the planning and formulation of a strategy for halloumi, in order to increase its distinctiveness as an authentic product of Cyprus and potential carrying out of a promotion and awareness campaign.

Investment 5: Grant Scheme for the modernisation and digitisation of businesses active in the processing and trade of agricultural products.

Investment 6: Plan to strengthen their competitiveness and energy upgrade of large companies in Cyprus (REPowerEU).

Investment 7: Strengthening the added value of the tourism sector with an emphasis on rural areas and mountainous and remote areas.

This is expected to be achieved through funding aimed at renovating accommodation/hotels in rural, mountainous and remote areas to modernise and increase the competitiveness of the tourism product.

Investment 8: Strengthen the added value of the tourism sector with emphasis on rural areas and mountainous and remote areas.

Said investment includes the renovation of restaurants or businesses selling traditional products, including SMEs labeled "Taste of Cyprus", as well as the configuration of accommodation/hotels to include medical and assisted living facilities to attract health, wellness and medical tourism.

Investment 9: Enrichment of the tourism product in rural, mountainous and remote areas.

The investment includes the Venus Thematic Route and grants to businesses and local community councils to promote micro and small businesses in the creative and manufacturing sectors, such as artists, crafts and traditional products.

Reform 4: Strengthening the circular economy in industry.

Reform 5: Establishment of a Coordinating Body between central government and local government.

Investment 10: Improvement and expansion of the National Network of Green Points and creation of a Network of collection and recycling points.

Investment 11: Waste management towards a circular economy.

• Enhanced research and innovation (budget: €64 million or 5.2% of the total

Reform 1: An integrated National Research and Innovation (R&I) Strategy, which will be supported by data-driven policy tools to support the research and innovation ecosystem and to strengthen the interconnection between policy makers and implementers.

Reform 2: Incentives to encourage and attract investment and human resources in the R&D sectors.

Reform 3: Policies and incentives to facilitate and enhance access to publicly funded research infrastructure and laboratories.

• Strengthening the competitiveness of businesses (budget: €39 million or 3.2% of the total)

Reform 1: Facilitating strategic investments.

Reform 2: Reinforcement of a mechanism for the rapid activation of enterprises.

Reform 3: Modernisation of the Companies Law.

Investment 1: Integrated information system for the Department of the Registrar of Companies and Intellectual Property.

Reform 4: Design and establishment of a National Promotional Agency.

Reform 5: Finding a strategic investor for the Cyprus Stock Exchange.

Investment 4: Business Digital Upscaling Grant Scheme.

Investment 6: Publicly funded equity fund.

• Modernisation of public service and local government, judicial system reform and fight against corruption (budget: €95.5 million or 7.8% of the total)

Reform 1: Strengthen administrative capacity and improve the processes and operation of public administration for better policy making and implementation.

Reform 2: Set up flexible working arrangements in the public sector.

Reform 3: Introduce a new framework for the evaluation and selection of candidates to fill vacancies in the public service and new regulations for evaluating employee performance.

Reform 4: Strengthening administrative capacity, transparency and further digitisation of public procurement processes.

Reform 5: Strengthening the administrative capacity of the Legal Service, through the development of an electronic case management system.

Investment 2: Digitisation of the legislative process, development of an integrated legislation drafting platform and database.

Reform 6: New legislative framework for local authorities and related support measures.

Reform 7: Urban redevelopment.

Investment 4: Improvement of the electronic system for issuing building permits.

Investment 5: Create a national strategy for "smart cities" through a comprehensive plan and initiatives to improve the lives of residents, optimise the use of urban resources and services and reduce the impact on the environment.

Investment 6: Regeneration and revitalisation of Nicosia within the walls.

Reform 8: Efficiency and functionality of justice.

Reform 9: Digital transformation of courts.

Investment 7: Training of judges / court staff.

Investment 8: Upgrading the infrastructure of the courts.

Reform 10: Improving the legislative and institutional framework to fight corruption.

Investment 9: Sponsorship plan regarding the certification (ISO) of public and private sector organisations in the development and implementation of management systems to combat bribery and corruption.

• Ensuring fiscal and financial stability (budget: €44.5 million or 3.6% of the total)

Reform 1: Complete the regulatory framework for crisis management in credit institutions.

Reform 2: Framework and action plan for dealing with non-performing loans – NPLs.

Reform 3: Strategy to address inadequacies of the property title system.

Reform 4: New legal framework and data exchange and credit bureau system.

Reform 5: Action plan to develop a liability tracking register.

Reform 6: Improving the insolvency framework.

Reform 7: Strategy to fight financial illiteracy.

Reform 8: Strengthening the supervision of insurance and pension funds.

Reform 9: Improving the collection capacity and efficiency of the Tax Department.

Reform 10: Tackling aggressive tax planning – ATP.

Investment: Modernisation of the customs and electronic payment system.

(Source: InBusinessNews)