As part of the European programme 'THALIA 2021-2027', Cyprus has received a total of €1.8 billion in grants.
This is the largest financial aid package since the island nation joined the European Union in 2004.
This major initiative, aimed at sustainable development, digital transformation and improving the quality of life in Cyprus, was officially approved by the European Commission in July 2022. Since then, the Cypriot government has managed to allocate €600 million to implement more than 100 projects, many of which have already been completed.
According to local experts, the further implementation of the THALIA 2021-2027 programme should ensure GDP growth of 6% by 2029, create around 8,500 new jobs, promote the green transition, digitalisation and social inclusion, and strengthen the development and competitiveness of Cyprus' regions.
The current programme builds on the success of the previous funding period (2014-2020), during which Cyprus demonstrated record efficiency, absorbing €880 million in EU funds and leading all 27 Member States in terms of absorption. These investments created more than 24,000 jobs and increased GDP by around 6%.
The THALIA programme funds major projects in every district of Cyprus. In detail:
- In Nicosia, the reconstruction of Eleftheria Square, the shopping triangle (Makarios, Stasikratous, Evagora), the renovation of Aglanitia Avenue, the modernisation of Solomos Square and the restoration of the Municipal Theatre have been financed.
- In Larnaca, a municipal market was built, the Municipal Garden was reconstructed and a multifunctional cultural space was created.
- In Paphos, the Ibrahim Khan complex was restored, Kennedy Square was reconstructed and the shopping area was modernised.
- In Limassol, a vertical motorway to the port has been built and the port infrastructure has been upgraded.
In addition, EU grants have covered the costs of many national projects. These include the opening of the Stelios Ioannou Library at the University of Cyprus, the development of IT infrastructure, the introduction of a general health care system (GESY) and the creation of a network of "green points" throughout the country to improve waste management.
Future projects under the THALIA programme will focus on addressing key challenges of our time:
- improving the energy efficiency of schools, homes and municipal buildings;
- supporting youth entrepreneurship and business start-ups;
- developing local communities; expanding social programmes, especially in rural and remote areas; and
- improving access to digital services and infrastructure.
By the end of 2029, around 160 projects are expected to be implemented in Cyprus with EU support, significantly exceeding the scale of previous investment cycles. This reflects not only the European Commission's growing confidence in Cyprus, but also the country's commitment to sustainable and inclusive development.
The THALIA programme is not just funding, but a strategy for the renewal of Cyprus, aimed at creating a modern, sustainable and competitive economy. Over the coming years, the people of the island will see real improvements in infrastructure, living standards and development opportunities.