8 Oct. 2021 - Cyprus' Strategy for Economic Diplomacy moves to implementation phase after its adoption today by the Council of Ministers

Press release regarding the adoption of the Strategy for Economic Diplomacy by the Council of Ministers 

The Council of Ministers approved today the Economic Diplomacy Strategy of Cyprus for the period 2021-2023. With the adoption of the Economic Diplomacy Strategy, the Ministry of Foreign Affairs, together with its Diplomatic Missions abroad, will undertake a more active role in promoting the economic and business interests of the country, as defined by the competent Ministries and the Council of Ministers. Within this framework this framework, economic diplomacy is implemented in full alignment with the policy axes of the Government and in line with the political priorities of the competent Ministries, as reflected in the Strategic Framework for Fiscal Policy and in the Annual Government Budget.

The Ministry of Foreign Affairs will promote the implementation of the Economic Diplomacy Strategy and will facilitate and support the work of all key stakeholders of the economic and business ecosystem of Cyprus, by promoting the country's political priorities and economic interests abroad, efficiently and effectively.

The desired impact of the Economic Diplomacy Strategy is enhanced economic prosperity from increased trade, foreign direct investment, innovation and national branding through strengthened Government capacity and international influence, maximising benefits from diplomatic activities.

This will be pursued through the following strategic objectives:

  • Contribute to increased exports and market share for the Cypriot business sector
  • Attract efficiency-seeking and strategic asset-seeking types of foreign direct investment, which maximise value-added and can trigger innovation spillovers to the economy.
  • Promote a coherent and cohesive brand for Cyprus abroad

Aiming towards the effective coordination and implementation of the Strategy, a two-level cooperation mechanism was established, as follows:

  • Political level: an Interministerial Committee for Economic Diplomacy, consisting of the Minister of Foreign Affairs, the Minister of Finance and the Minister of Energy, Trade and Industry. It is noted that other Ministers and Deputy Ministers may participate in the Interministerial Committee, depending on the issues and policy areas to be discussed.
  • Experts level: a Working Group for Economic Diplomacy, with representatives from the competent Ministries, Deputy Ministries and the Cyprus Investment Promotion Agency.

The development of the Economic Diplomacy Strategy was based on consultants’ recommendations, which were formulated taking into consideration, among other things, best practices from other countries, as well as the special characteristics of Cyprus. The relevant study was funded by the Structural Reforms Support Program of the European Commission.