Cyprus is following the right path for stabilizing its economy, European Commissioner for Internal Market Michel Barnier said on Thursday following a meeting he had here with Finance Minister Harris Georgiades .

EU Commissioner sent a message of solidarity to the people of Cyprus for its efforts for the recovery of its economy while he defended the position of the EU that the restrictions on the movement of capital must be lifted gradually.

Barnier, who is visiting Cyprus a day after the second evaluation of Cyprus` adherence to the bailout programme by the Troika, noted that Cyprus has responded to its responsibilities and commitments stemming from its bailout agreement.

He also praised the efforts made by the Cypriot people noting that they have produced results.

“The aim is to return to growth,” he said, making it clear that the efforts made by the Cypriot Government for financial stability and the measures taken are not an end in itself.

He said that the financial stability is not the end of the road, although growth cannot be achieved without financial stability and new jobs. “This is what we try to achieve along with the Cypriot people”, he added.

Barnier placed particular emphasis on the need to create new jobs and growth with the help of the EU in order to reduce unemployment rate especially among young people.

Asked whether there will be a flow of liquidity from the EU for development projects, the European Commissioner said that there is a financial aid program for a seven-year period amounting to €1 billion, adding that Cyprus will also receive €200 million in funds to support programs and investments in Cyprus.

Excluded from the international markets, Cyprus applied for financial assistance to cover its fiscal needs and to rescue its two largest bank hit severely by deteriorating assets amid the financial crisis and by the Greek sovereign debt haircut. The Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout, featuring haircut of uninsured deposits.  So far Cyprus has received €4.7 billion.