Action Plan for Growth - 3rd Progress Report, June 2016

Unit for Administrative Reform Presidency

Action Plan for Growth 3rd Progress Report ______________________

June 2016

1. INTRODUCTION Cyprus is committed to continuing the process of economic reform in order to return to a sustainable growth path. The aim is to achieve the improvement of the overall competitiveness of the economy and to unlock the country’s investment potential.

To this end, the reforms aiming stability are being complemented balanced and sustainable new vulnerable to external shocks and

at fiscal consolidation and financial by efforts to develop a robust, more growth model that will be less will give rise to jobs and welfare.

The Action Plan for Growth that has been adopted, provides an overall framework for the formulation of horizontal and sectoral policies aiming at enhancing competitiveness and growth. Emphasis is placed on horizontal, cross sectoral measures in priority areas such as the removal of bottlenecks and improvement of the overall investment and business environment, the promotion of entrepreneurship and enhancement of SME competitiveness, the improvement of the regulatory environment, the promotion of e-government as well as the promotion of measures to improve the competitiveness of specific sectors of the economy, which are key drivers of growth.

The priorities set out through the Action Plan for Growth, which direct our policy and spending decisions, are closely aligned to the targets of Europe 2020, for smart, sustainable and inclusive growth.

A progress report on the Action Plan for Growth is prepared and published every six months. This third Progress Report, provides an update on progress of implementation of the measures under the key priority areas of the Action Plan.

It should be noted that some of the measures included in the Action Plan have been modified in the light of developments, while some other measures have been added as their implementation has already been taken on board by the Unit of Administrative reform (e.g. simplification of priority procedures of the Social Insurance Services, modernisation and simplifications in the Civil Registry and Migration Department, promotion of measures for enhancing Cyprus’s export performance, promotion of participatory democracy through the introduction of an electronic petition system).

The progress regarding the high priority measures is reported below.

All the measures included in the Action Plan, together with a short description of the progress achieved so far, are presented in the table in the Annex.

1

2. PROGRESS IN IMPLEMENTING THE PRIORITY MEASURES OF THE ACTION PLAN A: ACTIONS IMPLEMENTED BY/WITH THE SUPPORT OF THE UNIT OF ADMINISTRATIVE REFORM OF THE PRESIDENCY 2.1. FORMULATING THE STRATEGIC ECONOMIC DIRECTION FOR GROWTH AND COMPETITIVENESS Achieving Balanced Growth Tourism Tourism has been identified as a major pillar for the recovery of the economy following the 2013 crisis. Nevertheless, Tourism suffers from important structural problems, hampering its competitiveness. For these reasons, the following priority measures are under implementation: - Assessment of the institutional framework of the tourism sector The assessment of the institutional framework has been carried out within the framework of the functional review for MECIT which started in Q2 2015 and was completed in December 2015.

Additionally, the relevant legislation was assessed within the framework of the work undertaken by the Presidency and MECIT for the simplification of procedures which started in Q2 2015 and was completed in December 2015.

The findings of the above assessments are now under consideration and decisions will be taken as regards the implementation of the experts’ recommendations. The drafted legislation is expected to be submitted to Parliament by December 2016.

Furthermore, work is underway by the Presidency for the establishment of a Deputy Ministry for Tourism. A relevant draft Bill will soon be forwarded for final legal vetting while the structure, responsibilities -as well as an action plan for the establishment of the Deputy Ministry- are currently under preparation.

- Development of a Tourism Growth Strategy A study is currently undertaken by external consultants for the development of a Tourism Growth Strategy.

The relevant contract was signed in January and the study is expected to be completed by Q3 2016. The Inception Report was submitted in February 2016 whilst the Interim Report was submitted in June 2016.

2

The Final Strategy and accompanying Action Plans are expected to be delivered by end September 2016.

Given the high importance of tourism, the high level Steering Committee, comprised of the competent Ministers in the areas of tourism, connectivity and growth, the Chairman of the Board of Directors of CTO and the Chief Executive Officer of Hermes Airports Ltd has been meeting regularly, implementing an enhanced coordination mechanism among the relevant stakeholders. In addition, the two Sub-Committees which were formed in the areas of Tourism and Connectivity, have been working mainly on short term measures.

Monitoring Competitiveness Monitoring the implementation and performance in relation to international benchmarks is needed as part of the goal to provide all tradable sectors with an investment friendly institutional and legal framework and to remove impediments / reduce the cost of doing business, in order to attract investments and become competitive at international level. The incorporation of the monitoring of international indicators into the national policy framework will facilitate the design of the necessary actions and policies in order to improve these indicators.

- Monitoring of International Benchmarking Reports and Indicators The objective of this measure is to undertake a competitiveness benchmarking exercise for determining Cyprus’ performance in terms of international competitiveness across a range of indicators and to examine the possibility of issuing competitiveness reports on a regular basis.

A proposal on the Outline (structure and indicators selected) of a Competitiveness Report, containing benchmarking analysis based on selected indicators, to be published annually, was prepared. The aim of the report will be to provide an analytical tool for assessing the performance of Cyprus, to facilitate the dialogue with the private sector, as well as to contribute to setting the agenda for reforms aiming at competitiveness improvements.

The Outline of the Report was presented to the National Economic Council, the Fiscal Council and other representatives of the academia in February 2016. The comments received during the presentation were incorporated in the finalised Outline of the Report.

The collection of data for the indicators to be included in the Report as well as the drafting of the first sections/chapters, are currently underway.

3

- Revision of the role of the National Competitiveness Council A proposal for the establishment of a new National Competitiveness Council was prepared by the Presidency’s Unit for Administrative Reform. According to the proposal, the Council will be mandated with the systematic monitoring of competitiveness indicators and the scientific assessment and analysis of the economy’s international competitiveness as well as with carrying out policy analysis and providing relevant recommendations for appropriate reforms. In formulating the proposal, the recent developments at EU level regarding the establishment of National Productivity Boards in the Euro Area Member States have also been taken into consideration. The proposal is currently under consideration.

- Improve Cyprus’ rankings in global indices The aim of this measure is the introduction of a mechanism which will allow for the identification and promotion of reforms that will improve the rankings of Cyprus.

Work is currently ongoing, starting with the World Bank’s Doing Business Indicators. In close cooperation with all relevant public and private sector entities including CIPA, the problematic areas and bottlenecks per indicator that have a negative impact on the rankings of Cyprus have been identified and specific recommendations for improvements have been formulated for each one. This process started in relation to the 2016 World Bank Report and is now ongoing in relation to the 2017 Report.

It is noted that according to the latest Doing Business report for 2016, published in October 2015, Cyprus has moved up 13 places to become one of the top ten most improved countries in terms of economic and business reforms. Cyprus specifically showed improvements in the sectors of getting electricity, getting credit, paying taxes, enforcing contracts, and resolving insolvency.

Research and Innovation Improvement of the Research and Innovation Governance System The Unit for Administrative Reform formulated a proposal for the restructuring of the current governance system, taking into account the findings of the Strategy by the NCRITD. The proposal was submitted for consideration at the political level.

-

The Government continues with the existing structures, aiming at the timely implementation of the Smart Specialization Strategy and utilization of the Structural Funds to this effect, pending final decisions on the matter.

4

2.2. ENCOURANGING INVESTMENT AND CREATING A GROWTH ORIENTED ENTREPRENEURSHIP ECOSYSTEM Investment Investment is a key contributor to growth. Cyprus suffers from low capital formation in relation to other European countries and it is thus necessary to develop a comprehensive strategy to promote investments and establish the necessary legal framework and fast track mechanism for strategic investments.

Furthermore, a business friendly environment needs to be developed, that will enhance competitiveness and generate growth and jobs. The main actions that have been put forward for this area together with their progress are listed here-below.

- Introduce a Law for Attracting and Facilitating Investment The Final Report for the study for facilitating strategic investment was approved by Cyprus Authorities in November 2015. In parallel, based on the conclusions of the report, the legal experts prepared the first draft of the Legislation. Taking into account the proposal for a creation of a Deputy Ministry for Growth, it was decided to amend substantially the proposed legislation. A revised draft legislation is currently under consultation and is expected to be sent soon for legal vetting. The new procedural and legal framework on the strategic investment, including the set up of a fast track mechanism, is expected to be put in place by December 2016.

- Simplification of procedures for the employment of highly qualified third country nationals Simplifying the procedures for granting employment visas to highly skilled third country nationals will facilitate foreign investment. In this respect, the procedure that is currently being followed for the employment of highly skilled third country nationals, is under review in order to be simplified as much as possible. Furthermore, the possibility of introducing a start-up visa scheme is under examination.

- Improve Investor Journey’s for Major Investments Investor journeys for the main categories of projects have been fully mapped, covering all the licensing procedures which an investor has to follow for the construction and operation of such investment projects in Cyprus. This is considered as a very useful tool which will provide complete information and clear guidance to investors and will also facilitate the identification and promotion of simplifications in order to streamline the licensing procedures, where possible. Furthermore a general Investor’s Guide has been prepared.

5

Entrepreneurship The government’s ambition is for Cyprus to acquire a competitive environment in which to start and grow a business. Given the critical role that the Small and Medium Enterprises play in the domestic economy and considering the unemployment challenge Cyprus is currently facing, especially among university graduates, significantly increasing the number of entrepreneurs and start-ups is considered as hugely important for Cyprus’ economic growth.

- Develop a Strategic Framework for Promoting Entrepreneurship and Enhancing SMEs Competitiveness In order to increase entrepreneurial activity in a more friendly business environment, a National Policy Statement on the development of the Entrepreneurial Ecosystem in Cyprus, was approved by the Council of Ministers on the 14th of December 2015. The National Policy Statement leads to specific actions under 5 pillars: (i) Entrepreneurial Culture, (ii) Business Environment, (iii) Entrepreneurial Innovation, (iv) Access to Finance and (v) Access to Markets. For the preparation of the National Policy Statement a wide stakeholder consultation took place.

A Steering Committee has been established with the participation of the competent public authorities, as well as representatives of key stakeholders from the private sector, with the view to monitor closely and assess the implementation progress. A project manager was appointed for each action of the Policy Statement.

- Improve the Regulatory Framework for business set up/operation Discussion and actions are underway with the competent Authorities, such as the Department of Companies’ Registrar, the Tax Department etc, in order to identify and promote further simplification measures for businesses, especially for new companies to set-up. The SME test will be fully integrated in the revised Impact Assessment mechanism which is under preparation (see below).

- Establishment of an Entrepreneurs Office and a web portal for business In order to promote business activity and entrepreneurship in Cyprus, with special emphasis on support for start-ups, the possibility of setting up an Entrepreneurs Support Centre was examined, which would undertake all operations of the existing One-Stop-Shop and also assist existing and new entrepreneurs and major investments.

Following preliminary consultation with the private sector a study was undertaken for the operational planning and set up of an Entrepreneurial Centre responsible for: (a) first point of contact for licensing, (b) information for access to finance and (c) general and tailored made support for new entrepreneurial activities. The final 6

report was submitted in February 2016. A political decision is pending on how to proceed. Furthermore, an analysis is being undertaken on what the portal for business will include. The portal will be an upgrade of the PSC portal.

3.3 COMBATING BUREAUCRACY FOR ALL BARRIERS TO GROWTH FOR BUSINESS

AND

REMOVING

Better Regulation Despite the attractive business tax regime, the current regulatory framework suffers from a number of problems which negatively affect economic activity and do not allow Cyprus to exploit its full potential as an attractive place to live and do business. Some sectors are overregulated, or have either an obsolete or distortive legislation and regulatory framework. The main actions that have been put forward for this area together with their progress are listed here-below: - Establish a mechanism for implementing smart regulation An Action Plan on Better Regulation was prepared taking into account best practices from other MS (through technical assistance financed by the SG, a scoping mission of experts from the UK Better Regulation Delivery Office took place in March 2015 and suggestions for drafting the Action Plan were submitted in July 2015, while a study visit was arranged in Germany in September 2015). The Action Plan was approved by the Council of Ministers in October 2015. The Action Plan is formulated around three priorities: (a) Simplification of procedures and legislation – reducing administrative burden, (b) Better lawmaking and impact assessment and (c) Cultivation of culture and development of relevant skills.

- Improving (Simplifying or Eliminating) Administrative Procedures Selected activities of simplification have been initiated in: a. Tourism: an assessment of the existing legislation and procedures took place, aiming at reducing the administrative burden by 25%.

The results of the study were submitted in December 2015.

Consultations were undertaken thereafter and political decisions are pending in order to make final amendments and proceed with legal vetting of the revised legislation. b. Construction permits: This is an area where serious delays in investment have been identified. For this reason, the Ministry of Interior is expected to get technical assistance, for delivering a new legislation framework to replace the existing building legislation framework implemented in Cyprus related with the building and planning permit procedures (i.e. the Town and Country Planning Law as well as the Streets and Building Law).

7

c. Simplification of procedures are also promoted in selected processes of the Social Insurance Service (SIS) and the Civil Registry and Migration Department (CRMD). Technical assistance has been granted for consultants to assist with the end purpose of identifying weaknesses and simplifying the procedures at the CRMD. The project for the modernisation and simplification of CRMD is currently underway. The SIS is trying to arrange a study visit at the Department for Work and Pensions in the UK. d. Simplification of environment permits: The new proposed EIA law is currently under public consultation. The new law streamlines existing procedures. Furthermore for the simplification of environmental permits, technical assistance from the SRSS is underway.

The modernisation and simplification of these services/procedures in conjunction with the simplifications/modernisations in the Registrar of Companies and the Tax Department will substantially reduce the administrative burden for the benefit of both people and business and improve the business environment.

Introduce a new Impact Assessment Framework and SME Test A new Impact Assessment mechanism is under development with the aim to undertake more focused and thorough impact assessments.

Specific guidelines on how to complete the questionnaire are also being prepared. The SME Test will have as its aim the taking into consideration of all possible impacts, especially on SMEs, when drafting a new legislation. The intention is to examine the use of mitigation measures for small and micro enterprises, taking into consideration the structure of the business environment in Cyprus.

-

3.4. MOVING TO A DIGITAL ERA FOR THE GOVERNMENT The use of Information and Communication Technologies (ICT) is a key horizontal factor for growth. Despite some progress observed in the past few years, Cyprus still lags behind the EU average in a number of important ICT indicators, such as the demand and the supply of egovernment services.

Digital Strategy and E-Government This pillar of reform focuses on flagship e-government projects, the main progress of which is indicated here below: - Establishment of a Call Centre which will act as a teleservice single point of contact (SPOC) The Call Centre will be implemented in two phases: 8

Phase I: As of 02/03/2015, the Call Center is operated by the Citizen Service Centers (CSC). Citizens/businesses can call the number 1434 nationwide to have the following services: a. Information on the procedures for the 97 services already provided

by CSC. b. Submission of applications for 18 services (from the 97 services), through telephone. c. Information on the status of requests for a number of services provided by CSC. Phase II: This concerns the operation of a permanent integrated solution for Call Center, which will be operated by an external operator (outsourced), using the number 1434. The completed Call Center will be a communication center that will accept applications from multiple communication channels (telephone, SMS, email) and will provide the following services: a) Information on the procedures for all the services that the public sector offers to citizens/businesses (around 600 services). b) Information on the status of requests. c) Information on the contact details of all government bodies (e.g. phones, postal addresses, URLs, etc).

The Call Centre is expected to start its operation in April 2017.

- Selection of new services to be provided online through the government gateway (“Ariadni�)

Through this action, the Internet will be used more effectively to provide information and more public services online. The Government Gateway - "Ariadne", will provide information on the procedures for all the services that the public sector offers to citizens and businesses, information on the status of requests and public services online.

The selection of new services is underway. The e-government Board in its meeting in September 2015 instructed the Administrative Reform Unit/egov to prepare a proposal with the new eservices that will be offered to citizens and businesses through ARIADNI (in the next 2 years). This Action Plan with new public eServices in ARIADNI for the next 2 years (2016-2017) has been prepared and approved by the eGov Board (April 2016) and by the Council of Ministers (May 2016).

- Review and redefine the existing national ICT/e-government structure and the responsibilities of each of the involved actors It was decided that this action would be part of the functional review of the Ministry of Transport, Communications and Works. The final report of the experts was submitted at the end of November 2015. The main suggestion regarding the ICT/egovernment structure was that the new structural arrangements should be given a period of operation 9

of 24 months in order to assess how they function. The report also includes a suggestion for further changes to the structures after the 24 months, in case the new structural arrangements are in the meantime judged as not sufficient.

New structural arrangements: A Digital Strategy Group was created, by the Decision of the Council of Ministers on 3rd June 2015, in which relevant stakeholders of the public, academic and private sectors participate. The Group will review the Government’s structures for the Digital Strategy.

The Council of Ministers on 13 of May 2015, decided to replace the Executive Computerization Board with the E-government Board, with representatives at the highest level. The objective of the Egovernment board is to approve all the e-gov actions, monitor the progress of the e-gov actions and give solutions on significant problems that affect the implementation of e-gov actions.

The E-government Board is supported by the Presidency’s Unit for Administrative Reform (e-government team).

- Digitalization of all schemes granted for the Enhancement of Entrepreneurship For this action, the Greek Government will provide the Digitization System to the Cypriot Government (in the context of an MoU signed by the two parts concerning the promotion of entrepreneurship). The Cypriot Government will need however to configure the system to adapt it to the Cypriot legislation and procedures.

The system is expected to be in operation in 2017.

- Introduce “e-signature and eID” policy and assess the “Electronic Certification System of the State”, in order for the state’s system to be able to support electronic signatures and other electronic security services A proposal was prepared with the several options for the provision of electronic signature and e-authentication which was submitted to the e-government Board in September 2015.

The e-government Board in its meeting in September 2015 instructed the Reform Unit/egov and DITS to investigate further the option to purchase e-Signature and e-Authentication certificates for citizens. A new proposal was submitted to the egov Board in April 2016 with the results of the investigation and suggestions. The egov Board decided that Cyprus government will purchase the media and the e-Signature and e-Authentication certificates from a CSP instead of developing government PKI infrastructure.

10

B: ACTIONS IMPLEMENTED BY RELEVANT MINISTRIES Connectivity The overall objective of this measure is the enhancement of Cyprus’ air connectivity, through the promotion of actions relating to the open air policy, the incentives provided to airlines, the airport charges and the available traffic rights.

As regards the open air policy, the Action Plan of Cyprus’s Aeropolitical Strategy is implemented according to schedule and will be reviewed yearly.

A new scheme is being offered by Hermes since March 2015 aiming to further strengthen the passenger and tourism traffic to Cyprus.

Furthermore, a dialogue for the encouragement of airlines to provide new routes and direct connections to Cyprus is currently ongoing.

Scarce traffic rights are being made available to airlines gradually according to set priorities.

It is noted that through the various measures promoted, an increase of 7.3% in passenger traffic was observed in 2015.

Shipping Industry The shipping sector is one of the major sectors of the economy and the following actions are under way for the enhancement of its competitiveness and the international reputation of Cyprus as a maritime center, as well as for the improvement of infrastructures: - Enhancement of the competitiveness of the shipping industry The Council of Ministers in March 2015 approved a framework of measures for the recovery and further development of the shipping sector, on the basis of a study conducted by independent experts aiming at the elaboration of a holistic Strategic Development Plan for the improvement of the competitiveness and the international position of the Cyprus Shipping Industry. A number of Ad hoc Working Groups were established in April 2015 by the MTCW, in order to make specific proposals for the implementation of this framework. The Groups concluded their work and proposals in December 2015. The said Working Groups are presently studying further and implementing the recommended measures which cover inter alia actions related to the promotion and development of the Cyprus Maritime cluster.

Also, the functional review of the Department of Merchant Shipping (DMS) has been concluded and a decision was taken for the set up of a Working Group, with the participation of the MTCW, the DMS and the private sector, to examine the recommendations of the functional 11

review and best practices from other member states.The results of the review are being analysed further.

Green Energy The Government, realizing Cyprus’s potential to be transformed into a green and energy efficient economy, has set the determination and optimization of the energy mix as a priority, aiming to exploit its renewable energy sources in a sustainable manner.

- Optimisation of energy mix and introduction of a competitive electricity market. Promotion of renewable energy sources.

Energy efficiency The objectives of the measures under this section are to formulate and adopt a new electricity model, to promote renewable energy sources (RES) and to promote actions for a more efficient use of energy.

Regarding the new electricity model, the Cyprus Energy Regulatory Authority (CERA), following public consultation, published on 12/5/2015 a Regulatory Decision titled “Detailed Electricity Market Design is adopted”. The Decision describes all the arrangements and regulatory interventions proposed for the functioning of a competitive electricity market in Cyprus. The Transmission System Operator of Cyprus (TSOC) is currently amending the Trade and Settlement Rules according to CERA’s Regulatory Decision. According to the TSOC’s schedule, the new TSRs will be submitted for approval to CERA and the Minister by the end of 2016.

Regarding the promotion of RES, a study, conducted by the International Renewable Energy Agency (IRENA) was submitted to the Government in April 2015. In order to evaluate the effects on the grid stability from the deployment of RES on the basis of the findings of this study and the integration of intermitted renewable energy sources, a study was undertaken by the Joint Research Center (JRC) which is on-going, expected to be completed by end July 2016. In addition, the National Action Plan for the Promotion of RES was updated (as regards the issues relating to the production of electricity from RES) in February 2016 following a decision by the Council of Ministers. The review took into consideration preliminary inputs from the JRC and the KTH (Royal Institute of Sweden) studies, regarding the optimum way for the further penetration of RES in Cyprus’s electricity framework.

Regarding the increase of energy efficiency, MECIT has secured: a. Funds of around 52.9 million Euro from the EU structural and cohesion funds for 2014-2020 in order to provide financial incentives for the energy renovation of existing buildings 12

(households, industrial and public), which also includes installation of RES systems and the promotion of nearly zero energy buildings.

To implement the above Programme, MECIT has announced two subsidy schemes, called “Save – Upgrade” which mainly finance deep renovation in households and commercial buildings of enterprises.

In addition, MECIT is cooperating with DG EPCD for the preparation of a call for expression of interest, aiming to finance pilot projects of combined heat and power generation in public authorities, local authorities and public universities. b. In the framework of the Territorial Cooperation programme Greece-Cyprus 2014-2020 MECIT has submitted a project proposal for improving the energy efficiency in existing buildings of municipalities and regional authorities, which is currently under evaluation.

Research and Innovation Development of a Strategy for Research and Innovation The objective of this measure is to develop a comprehensive strategy for research and innovation for Cyprus taking into account the findings of the Study by the National Commission on Research, Innovation and Technological Development (NCRITD), and the current fiscal constraints. The main findings and recommendations of the NCRITD study have been identified as well in the Smart Specialisation Strategy (S3CY). The S3CY includes an Action Plan, to be implemented over the period 2015 – 2022, with measures amounting to €144 mln, with ESIF co-financing. The Action Plan of S3CY is expected to also address the main issues of the R&I system in Cyprus such as the inclusion of SMEs in RTDI activities and the attraction of private sector in RTDI investments, the establishment of synergies between the research and academic community with the business world and the enhancement of extroversion of the Cyprus RTDI system.

As regards the implementation of the S3 Cy Action Plan, the Research Promotion Foundation (RPF) has completed the Draft Document RESTART 2016-2020 for launching the new Programmes. RESTART 2016-2020 is currently being examined by DG EPCD, as Managing Authority of ESIF and the Office of the Commissioner for State Aid Control. The announcement of the first call for proposals is expected in the second half of 2016.

Furthermore, the Ministry of Energy, Commerce, Industry and Tourism has launched two programmes for Strengthening Business Innovation with a budget of around €14 mln and €5 mln, respectively. The submission deadline expired on March 16, 2015 and the evaluation 13

process is under way. The rest of the relevant Programmes of the Ministry, are currently in the phase of public consultation.

Education Education and training entails a horizontal policy element, affecting the growth prospects of all economic sectors. Increasing the skills, knowledge, capability and flexibility of the workforce is a critical element in the ability of the sectors to achieve their potential for growth.

- Aligning the Education and Training System to the needs of the labour market Some of the measures promoted towards the implementation of this action are: a. Implementation of measures under the Strategic Plan for the System of Technical and Vocational Education and Training (STVE) which was approved by the Council of Ministers on 15.4.2015 and appointment of a Committee that has prepared proposals for the upgrading of STVE aiming to accelerate the reform process. These proposals were approved by the Council of Ministers on 14.12.2015. b. Assignment of the New Modern Apprenticeship Scheme to MOEC on 1.9.2015 and approval of a proposal for the operation and upgrading of the Scheme on 19.8.2015. c. The MOEC is currently preparing to submit applications for the evaluation of Post Secondary Institutes of Vocational Education and Training (PSIVET) and for the evaluation/accreditation of the PSIVET programmes, to the Cyprus Agency of Quality Assurance and Accreditation in Higher Education. d. A new law for a more effective system of teacher recruitment will be enacted in 2018. e. The implementation of a New Professional Learning System for teachers and teaching processes in elementary and middle education has been piloted since September 2015 and discussions are taking place for a larger scale implementation in the school year 2016-2017. f.

With respect to expanding the capacity of the Public Employment Services (PES), the PES information system upgrade is under development and is expected to be operational by the end of 2016.

The project for the enhancement of the service capacity of PES is in progress with the first stage expected to be completed in the first 14

quarter of 2017, while PES staff training is also expected to be implemented in the first quarter of 2017.

Transparency – Justice System Reform Acknowledging the need to modernise justice, the Supreme Court of Cyprus together with the Ministry of Justice and Public Order, have promoted a number of measures to improve and expedite its administration, including: - Establishment of an Administrative Court which is operational since 1.1.2016. The Administrative Court has taken on board all first instance administrative recourses, thus discharging the Supreme Court of this task and enabling it to carry out more expeditiously its second instance jurisdiction (appeals).

- Successful use of automatic stenotyping in criminal cases before the Assize Courts with the result that cases are dealt with more expeditiously.

- Initiation of tender procedure for the acquisition of a a Court Administration/Management Information System (E-Justice). This process has not yet been finalised.

- Assignment of three judges in each district (District judge, senior district judge and president) to deal with commercial and immovable property cases.

- Amendment of the Courts’ Law of 1960, according to which every senior District Judge or District Judge has jurisdiction to hear and determine any application in relation to the execution of property under Part V of the Civil Procedure Law, regardless of the value of the property.

- Preparation of a draft Law which filters the right for filing of an appeal regarding interlocutory decisions during the proceedings.

- Preparation of a bill amending the Civil Procedure Law, so as to strengthen the legal framework for the enforcement of judgments.

The provisions of the Bill include measures which facilitate the execution of warrants concerning the seizure of movable property.

Furthermore, the Supreme Court has promoted a number of changes in the procedural rules and administrative processes including changes to reduce the delays encountered in litigation and to reduce the complexity of the system of civil procedure. This encompasses a “fast track” procedure for claims with a value not exceeding €3.000.

Further to the above, the Supreme Court has requested technical assistance from the Structural Reform Support Service of the EU for the modernisation of the judicial system and the management of the courts.

15