Cyprus: Contrarian Trend in State Aid, According to the Commission

A European Commission report shows that while state aid at the EU level is returning to pre-COVID levels, Cyprus is following a contrarian path, increasing its aid as a percentage of GDP.

In 2024, EU member states spent a total of €168.23 billion on state aid, equivalent to 0.94% of EU GDP. Approximately 90% was directed towards the Union's policy priorities.

Cyprus spent €186.35 million on state aid in 2024, approximately 0.56% of its GDP, recording an increase of 0.09%, in contrast to the downward trend in the EU. Particular emphasis is placed on the agricultural sector.

The Commission's report highlights that Cypriot state aid policy reflects 'specific national priorities'.

At the EU level, the largest share of aid concerns environmental protection and energy saving.