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Cyprus

This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Cyprus.

Economic situation

As Cyprus was under a financial adjustment programme until March 2016, no country-specific recommendations were addressed to the country in 2015.

Economic outlook

The Commission publishes macroeconomic forecasts for the EU and the Member States three times a year, in the spring (May), in the autumn (November) and in the winter (February). These forecasts are produced by the Directorate-General for Economic and Financial Affairs (DG ECFIN).

EU financial assistance

In March 2016, Cyprus exited its three-year Economic Adjustment Programme formally agreed in May 2013. The programme  included the implementation of an ambitious reform agenda and contributed to ensuring financial stability, improving public finances and restoring sustainable economic growth. Cyprus is now subject to post-programme surveillance (PPS) until at least 75% of the financial assistance received has been repaid.

Fiscal surveillance

Assessments of Cyprus's stability programme

As Cyprus exited its financial assistance programme on 31 March 2016, the country is required to submit a stability programme in spring 2016.

The EU Excessive Deficit Procedure and Cyprus

Macroeconomic surveillance

National reform programme

As part of the Europe 2020 strategy for a smart, sustainable and inclusive EU economy, each spring Cyprus submits a national reform programme (NRP), which is assessed by the Commission.

Macroeconomic Imbalance Procedure and Cyprus

The Macroeconomic Imbalance Procedure (MIP) is a surveillance mechanism that aims to identify potential risks early on, prevent the emergence of harmful macroeconomic imbalances and correct the imbalances that are already in place.

The annual starting point of the MIP is the Alert Mechanism Report: Based on a scoreboard of indicators and economic judgment, it is a filter to identify countries and issues for which a closer analysis (in-depth review) is deemed necessary. The outcome of these in-depth reviews forms the basis for further steps under the MIP.

After exiting its financial adjustment programme on 31 March 2016, Cyprus has been reintegrated into the regular cycle of European economic policy coordination, including the Macroeconomic Imbalance Procedure.

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