The press release will be of interest to those interested in both Cyprus and EU reform.
Whilst the EUR700 is good news, it will no doubt come with qualifications from the various EU funds. Careful reading of the document shows that the approach is “The EU has lots of money, guys how can we give some to poor old Cyprus?”.
There is no evidence of a strategic review of Cyprus. Indeed the press release fails to mention Cyprus huge offshore gas reserves.
If the EU were giving out aide in response to strategic requirements of the EU and Cyprus, it would focus on both offshore oil and gas.
Given the overall context of Europe’s crisis, the size of the EU’s available funding and the strategic importance of investing in Cyprus’ energy sector, the promised EUR 700 million is far too small.
Clearly, the EU process is paternalistic and political, so the strategic needs of both Europe and Cyprus have not really been considered. This, of course, brings into serious question the effectiveness of the European Commission.