Politis

State Aid: EU Returns to Pre-COVID Levels - Cyprus Follows Contrasting Trend

Published January 15, 2026, 17:23
State Aid: EU Returns to Pre-COVID Levels - Cyprus Follows Contrasting Trend

At the EU-27 level, state aid in 2024 amounted to €168.23 billion, or 0.94% of GDP, returning to pre-COVID-19 levels. Approximately 90% of the aid was directed towards EU policy priorities, while 10% went to crisis measures. However, Cyprus follows a different trend, increasing its aid as a percentage of GDP and placing particular emphasis on the agricultural sector. Although Cyprus spent only 0.11% of the EU total (€186.35 million), the increase in aid as a percentage of GDP is contrary to the general EU trend. Cyprus ranks alongside Malta and Latvia among the countries with the lowest total expenditure. The European Commission report shows that Cyprus is strategically strengthening specific sectors, reallocating its spending to cohesion and rural development policies, seeking convergence with European priorities, but with national specialisation. The allocation of Cyprus's resources is similar to that of the EU, with the majority of aid relating to non-critical, structural policies. Only 7 member states increased their state aid as a percentage of GDP in 2024, including Cyprus, Bulgaria, Romania, Belgium, Austria and Ireland. The largest EU economies (Germany, France, Italy) reduced their aid as emergency support measures were withdrawn.