Cyprus

[CY] Cyprus Press Agency to Comply with State Aid Law

IRIS 2003-10:1/25

Andreas Christodoulou

Cyprus

In June 2003, the House of Representatives approved the Cyprus Press Agency Amendment Law of 2003 regulating state aid received annually by the national news agency, the Cyprus Press Agency (CPA - KYPE).

The new Law fully harmonises national legislation with the relevant European acquis and more specifically with provisions of Articles 86 and 87 of the European Community Treaty, and Directives 1980/723/EEC and 2000/52/EC (for the broadcasting sector see article in this issue).

The main provisions of this Law include:

- A precise definition of the term "general economic interest service" assigned to CPA;

- A clarification that the CPA may engage also in commercial activities provided they do not compromise the fulfillment by the Agency of the general economic interest service mission;

- A condition that the CPA keeps separate accounts for its commercial and general economic interest activities, which should be available to the public;

- The state aid granted to CPA should only cover and not exceed the cost accruing from the carrying out of the general economic interest service mission;

- The CPA will no longer be exempt from the payment of income tax;

- The auditing control of the Auditor General is extended in order to cover the use by CPA of state aid in accordance with the provisions of this Law.