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Turkish Cypriot Chamber of Commerce

KTTO

KTTO represents the economic interests of around 4,300 businesses in North Cyprus, accounting for 80% of its economic activity.

Lobbying Activity

Response to Aid Programme Evaluation

22 Oct 2025

The Aid Programme is the EUs only financial instrument available to the Turkish Cypriot Community until a comprehensive settlement is reached on the island. Its effectiveness is therefore crucial to foster socio-economic development and promote alignment with EU rules and standards. As an important channel for projecting EU values and policies, it should play a central role in enhancing competitiveness, driving the green and digital transitions, and preparing the Community for EU integration. The Turkish Cypriot Chamber of Commerce welcomes the proposed increase of annual allocations to 62 million under the 20282034 EU budget. This commitment must be safeguarded in the upcoming negotiations, ensuring that higher funding translates into greater and measurable impact. Since 2006, the EU has allocated 760 million to the Programme, yet its economic effect remains limited. Much of the private-sector funding has supported businesses already trading, or with potential to trade, across the Green Line, while key sectorstrade, tourism, and related serviceshave received little or no direct investment. Future assistance must therefore be more inclusive and diversified across all sectors driving growth, employment, and EU integration. Financial support should be target-oriented and non-discriminatory among sectors, ensuring allocation based on economic potential and contribution to competitiveness, maintaining support for intra island trade while extending it to other sectors with growth prospects. The imbalance in SME support illustrates this gap. In 2024, 4 million were allocated to SMEs, half through direct grants, yet only a small share reached the Chambers 4 500 members, who represent 85 % of the Turkish Cypriot economy. The same pattern appeared under the COVID-19 employment support scheme, with only eight of one hundred beneficiary SMEs being Chamber members, highlighting the need for a more tailored and evidence-based approach that reflects the structure and needs of the private sector. While small-scale projects have provided valuable support, future schemes should also provide scope for mid-sized and larger investments that drive innovation, productivity, and the green transitionmodernising industries, promoting renewable energy, and enhancing competitiveness. Beyond sectoral inclusiveness, the Programmes financial toolbox should be fully used. Grants have been effective in providing direct support, but a stronger and more sustainable impact could be achieved by complementing them with loans, guarantees, and revolving facilities that recycle EU funds and improve SME financing. Article 4 of the Financial Aid Regulation already allows such financial instruments, yet they remain unused and should be activated to enhance leverage and long-term impact. The absence of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) remain a significant shortcoming. Their engagement would leverage private capital and support investment in renewable energy, energy efficiency, digitalisation, and infrastructure. The evaluation should assess how their instruments could be adapted to the political and operational context of the Turkish Cypriot Community. The Turkish Cypriot Chamber of Commerce stands ready to contribute to the evaluation and to work with the European Commission to ensure that future EU assistance reaches the economy and private sector more directly, inclusively, and effectively anchoring the Turkish Cypriot Community more firmly within the European economic and regulatory framework.
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Meeting with Joao Onofre (Head of Unit Agriculture and Rural Development)

25 Sept 2025 · State of play of implementation of the Halloumi/Hellim PDO scheme in Cyprus

Meeting with Felicia Stanescu (Cabinet of Executive Vice-President Raffaele Fitto)

16 Sept 2025 · Exchange of views

Meeting with Joao Onofre (Head of Unit Agriculture and Rural Development)

15 Sept 2025 · Exchange of views on the state of play and the challenges in the implementation of the ‘Χαλλούμι’ (Halloumi) / ‘Hellim’ PDO file from the Turkish Cypriot side and the application for the registration of ‘Κυπριακή πατάτα κοκκινογής / Kypriaki

Meeting with Riikka Torppa (Cabinet of Commissioner Elisa Ferreira)

4 Jul 2024 · Meeting with Turgay Deniz, President of the KTTO to discuss cooperation in context of implementation of the EU Aid Programme for the Turkish Cypriot community and the EU Green Line regulation

Meeting with Andrey Kovatchev (Member of the European Parliament)

9 Feb 2023 · Trade matters.

Meeting with Tom Tynan (Cabinet of Commissioner Phil Hogan)

4 Jul 2017 · Business discussion

Meeting with Andrus Ansip (Vice-President) and

26 Jan 2017 · Digital Single Market, role of digitalisation for the economy