[6] Anastasios Antoniou LLC,[1] a Law Firm based in Limassol, filed an official complaint on 17 February 2010 with the European Commission regarding the proposed financing of Eurocypria on behalf of a client who wished to remain anonymous.

In a statement issued on 19 February 2010 in response to the media commentary, Anastasios Antoniou LLC explained that the capital injection on the part of the Republic of Cyprus is likely to be in violation of the applicable EU legislation regarding State Aid.

Made public by Finance Minister Charilaos Stavrakis on 10 June 2010, the two reports created a series of debates and rows with the island's political parties, who felt they were misled into approving the money.

The first report, carried out by the Accountant-general on February 3, proposed a strict implementation of Eurocypria's business plan to reinforce its profit-making abilities.

Failure to do so by mid-2010, it added, would lead to Eurocypria going bankrupt, in combination with some of its human and material resources being absorbed by national carrier Cyprus Airways.

In September 2010, Minister of Finance Mr Stavrakis announced that a possible merge of operations between Cyprus Airways and Eurocypria Airlines was under consideration, in an attempt to staunch losses.

These considerations were geared, after the disclosure of the 1H2010 troubled financial results of Cyprus Airways Ltd, in which the Government is the major shareholder.