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On 30 June 2026, the European Commission submitted its twentieth annual report on the implementation of EU assistance to the Turkish Cypriot community under Council Regulation (EC) No 389/2006, covering the period up to the end of 2025. The report shows that between 2006 and end of 2025, EUR 760,670,469.93 was programmed for the aid, with EUR 33,721,307 committed in September 2025 for the 2025 annual action programme. The 2021-2027 multiannual financial framework provides a total budget of EUR 240 million, with aid remaining exceptional and transitional, aimed at preparing for full application of the EU acquis in areas where the Republic of Cyprus does not exercise effective control.

In 2025, 102 contracts were running under the assistance programme. Key initiatives included EU scholarships, peace education, confidence-building measures, and support for Green Line trade. The Committee on Missing Persons received EUR 2.6 million in 2025, bringing the total EU contribution to EUR 41.1 million; by end of 2025, 1,714 remains had been exhumed and 1,063 of the 2,002 missing persons identified. The Technical Committee on Cultural Heritage also continued its work.

Green Line trade between the two communities decreased by 5% in 2025 to EUR 14.4 million. No new processed foods of non-animal origin were allowed to trade across the Green Line. Meanwhile, four Turkish Cypriot producers and 24 farms had obtained Protected Designation of Origin (PDO) certification for Halloumi/Hellim by 2025, but animal health inspections were delayed until the end of March 2026.

In education, nine Greek Cypriot and nine Turkish Cypriot students received United World College scholarships in 2025, bringing the total since inception to 82. Under the ninth Cypriot Civil Society in Action scheme, 16 grants totalling EUR 2.22 million were awarded.

The report notes that landfill management in the northern part of Cyprus has worsened, posing environmental and health risks. The EU continues to support waste management projects as part of its assistance.

The Turkish Cypriot community benefits from continued EU funding for economic development, infrastructure, and reconciliation, but faces challenges in expanding trade and meeting EU standards. Greek Cypriot stakeholders may view the aid as maintaining engagement without progress on reunification. EU taxpayers fund the programme, which has a total budget of EUR 240 million for 2021-2027. Producers in both communities stand to gain from PDO certification but face delays in inspections and market access.

The report is addressed to the European Parliament and the Council. Future annual action programmes will be adopted by the Commission, and the multiannual financial framework allocation will guide spending until 2027.

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