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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

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

The economic adjustment programme for Cyprus covers the period 2013-2016. The European Stability Mechanism (ESM) will provide up to EUR 9 billion, and the International Monetary Fund (IMF) is expected to contribute around EUR 1 billion. More information:

Fiscal surveillance

Assessments of Cyprus's stability programme

As required by the Stability and Growth Pact, each spring EU countries submit stability/convergence programmes which present an update of the medium-term fiscal strategy.

Euro area Member States submit stability programmes while countries outside the euro area submit convergence programmes. Based on an assessment by the Commission prepared by DG ECFIN, the Council adopts an opinion on the programme in the scope of the European Semester.

Cyprus is covered by surveillance under an economic adjustment programme. Therefore no stability programme was submitted this year.

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, Cyprus submitted a national reform programme (NRP) in spring, which was 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.

As Cyprus is subject to surveillance under an economic adjustment programme, the country is currently not covered by the Macroeconomic Imbalance Procedure. There was an in-depth review in 2012 before Cyprus requested financial assistance.

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