Country Profile: Cyprus

AuthorNaldini, Andrea; Pompili, Marco; Peruccacci, Eleonora
4. 1. Sect ion 1 - National rules for t he evaluat ion of State aid schemes
4.1. 1. Obligation or lack ther eof to evaluate
I n Cyp rus t here are no provi sions for a ge neral obl igat ion to eval uate all public policies,
but, in m any cases, ev aluations do t ake place, par tly following specific po licy initi atives
(e.g. educat ional policy) , part ly follow ing th e ESIF obligations and the monitoring and
evaluation mechanism developed in the context of the Econom ic Adj ustment
Programm e 105.
There are no prov isions for the ex-post ev aluat ion of State aid. The national legislation
only foresees the obligation t o carry out an ex-ante compatibilit y assessment of State
aid schem es based on Laws 30 (I)/ 2001, 122( I )/ 2001, 139(I ) / 2002, 10( I ) / 2003,
80(I)/ 2003, 14 4(I )/ 20 04, 177(I )/2005, 9( I) /2007, 82(I )/ 20 07, 108(I) /2009.
4.1. 2. Procedu res to en force the o bligation
Under the above-mentioned legislation each Competent Author it y is obliged t o notify
any St at e aid measure to the Comm issioner for State aid Control ( see below ) for
app ro val or opi nio n a s ap pro pri ate , w hil e i f n ecessa ry , it s hou ld a lso not ify t he Euro pean
Commission about the measure. No State aid measure m ay ent er int o force in t he
count ry without previou s approval by the Com missioner for State aid Control or t he
European Com mission .
I n t he case th at th e Com mi ssion er beco mes awa re, fo llow ing a c omp lain t or inf orm at ion
from any person, that a St at e aid measure has ent er ed into force without his/ her
app roval or opinion or without pr eviou s not ification of t he m easure to t he European
Com m ission, sh e/ h e may, by a du ly substantiat ed decision publish ed in the Official
Gazet t e of the Repu blic, order the suspension of the measu re, the term inat ion of the
unlawfu lness and t he r ecovery of any grants r eceived in br each of the Law plus the
law ful in terest . Also, t he Comm issioner for State aid Cont rol has th e regulat ory contr ol
ov er t he effecti ve imp lem entation of th e de cision s of t he Europ ean Com mission , in case
recovering unlawf ul State aid is needed.
4.2. Section 2 - Nat ional auth orities responsible for the evaluat ion of State aid
4.2. 1. Nat ional organ isation for State aid
In Cyprus t here are tw o authorities Responsible for St at e aid. I n both cases the
authorities are creat ed to respond to compliance assessm ent s:
The Office of t he Commissioner for St ate aid Control ( Cent ralised)
The Directorate General for European Programm es, Coordinat ion and
105 In May 20 13, an Econom ic Ad jus tm ent Progr amm e w as ag reed bet wee n t he Eur ope an Com mi ssion, t he
European Cent ral Bank (ECB), the I nter natio nal Monet ary Fund (IMF) and the Republic of Cyp rus, aiming
to add ress t he financi al, f iscal and stru ctur al ch allen ges f acing th e econ omy and allo w Cyp rus to r etu rn t o
a su stainable growt h pat h. It covers the period 2013 - 2016 . The f inancial package w ill cov er up to €1 0
billion , including €1 billion fr om t he IMF. The key objecti ves and m easures of the Programm e wer e laid
do wn in a Mem or and um of Un der stan din g ( MoU) w ith th e Eur opea n Com m ission (o n b ehal f of th e Eur opea n
Stability Mechanism - ESM) and a Mem orandum Of Econom ic and Finan cial Policies ( MEFP) with t he I MF.
The rev iew of t he im plem en tat ion of t he Progr am me fo llow s a st anda rd pr ocedu re th at t akes pla ce q uart erly
and is app licable to the Memb er States wh ich are su bject to similar progr ams.
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