Massive EU Funds for Northern Cyprus

After discussions last week the European Commission has confirmed the decision to allocate an astounding 139 million Euros in financial aid to the Turkish Cypriots in Northern Cyprus. This figure will be topped up by 120 million Euros in annual installments and represents the highest overall figure ever allocated in aid from the EU.

The EU will establish an office in North Cyprus to manage the aid funds, while overall supervision will come under the Commission’s main offices in the South. The aim is to create common procedures under a “bi-communal mechanism”, encouraging strategies that will bring the northern and southern communities closer together. Final decisions made in Brussels on 23 June, outline two main systems to be administered; the first system is the installation of a new EU office in Northern Cyprus, manned by 5 people appointed by the European Commission in Brussels who will liaise and encourage unity with the Greek Cypriot EU administration.

The second system takes the form of the appointment of expert EU advisors from Brussels from fields such as veterinary science, architecture and agriculture to observe ongoing applications in their fields of expertise, ensuring that adjustments are implemented in line with EU legislation. The funds are targeted chiefly at giving financial aid to Turkish Cypriots to improve the infrastructure, including building new roads as well establishing unions and NGOs, in an attempt at bringing the northern and southern communities closer together.

All planned projects will be rigorously checked before going ahead in order to avoid any problems arising over Greek Cypriot laws. To property investors in Northern Cyprus, the move towards greater unity between borders as well as an improved infrastructure is welcome news. Analysts predict an inevitable increase in property prices as a direct result of EU intervention, encouraging a new wave of optimism from investors in this ever-growing market.

Read more about North Cyprus Property Investment