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Streamlined state aid rules targeted to accelerate support for Cyprus SMEs

Cyprus Mail · 2026-09-19

AI SUMMARY

• What happened: The Office of the Commissioner for State Aid Control and the Research and Innovation Foundation (RIF) held a meeting to enhance cooperation and streamline state aid rules for small and medium-sized enterprises (SMEs) in Cyprus. • Why it matters: Strengthening institutional collaboration and implementing the General Block Exemption Regulation (GBER) is expected to expedite support for SMEs, which are crucial for the Cypriot economy. • What to watch next: Future developments in the proposed State Aid Innovation Academy and the integration of artificial intelligence in public administration, as well as ongoing discussions on state aid measures for SMEs.

**Streamlined State Aid Rules Targeted to Accelerate Support for Cyprus SMEs**

In a bid to enhance support for small and medium-sized enterprises (SMEs) in Cyprus, the Office of the Commissioner for State Aid Control and the Research and Innovation Foundation (RIF) convened earlier this week to discuss strategies for strengthening their institutional cooperation. The meeting, which took place between State Aid Control Commissioner Stella Michaelidou and RIF board chairman Demetris Skourides, aimed to establish a more structured framework for collaboration that would facilitate regular communication and the exchange of expertise.

During the meeting, both parties emphasized the importance of a proactive approach to state aid matters. They agreed that consulting the Commissioner’s office prior to the finalization of new RIF schemes and programs could help identify potential challenges early on. This foresight is expected to minimize the need for subsequent amendments and expedite the implementation of state aid measures, which is particularly crucial for the timely support of SMEs.

A significant topic of discussion was the General Block Exemption Regulation (GBER), which allows for simplified procedures in the design of support schemes for SMEs. The Commissioner’s office highlighted that proper application of GBER could streamline processes and hasten the implementation of compatible state aid measures, thereby providing quicker assistance to businesses in need.

In addition to regulatory discussions, the meeting also explored the integration of artificial intelligence (AI) within public administration. The use of AI is seen as a means to enhance productivity, expedite information processing, and assist public officials in their duties. The RIF's “AI in Government” program was highlighted, with an emphasis on the need for safe and responsible use of AI tools. The parties underscored the importance of protecting confidential and personal data, ensuring that human oversight remains a critical component of decision-making processes.

Training initiatives for RIF officials on state aid and related topics were also considered. The potential establishment of a State Aid Innovation Academy was proposed, which would focus on various aspects such as research, development, innovation funding, GBER implementation, and the responsible use of digital tools, including AI.

Both Michaelidou and Skourides expressed their commitment to ongoing dialogue and collaboration, aiming to identify specific areas for joint efforts that would ultimately benefit SMEs across Cyprus. The discussions reflect a concerted effort to create a more supportive environment for innovation and growth within the Cypriot economy, particularly for smaller enterprises that are often the backbone of local communities.

As the meeting concluded, the two sides reiterated their intention to continue exploring avenues for cooperation, which could lead to more effective state aid measures and a more robust support system for SMEs in the region.

Source: Cyprus Mail
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