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Cyprus has received its second payment under the EU's Recovery and Resilience Facility (RRF), with €115 million granted after successfully fulfilling 37 out of 38 agreed milestones. This payment follows Cyprus' efforts to implement reforms and investments outlined in its National Recovery and Resilience Plan.
The country initially requested a payment of €152 million in December 2023, which covered 38 milestones. However, during a preliminary review in September 2024, the European Commission found that one milestone related to taxation had not been fully met. While acknowledging Cyprus' efforts to address the issue, the Commission noted that more work is still needed on this front.
The RRF, part of the broader NextGenerationEU initiative, is performance-based, meaning payments depend on the successful implementation of planned reforms. The "payment suspension" procedure allowed Cyprus extra time to meet the outstanding milestone, which is common for all EU Member States.
The disbursed funds will support various sectors in Cyprus, including public health, education, renewable energy, water management, and agriculture, among others. The reforms aim to improve public administration, enhance legal frameworks to fight corruption, and boost investments in strategic areas.
Cyprus’ full Recovery and Resilience Plan is worth €1.2 billion, with €1.02 billion in grants and €200 million in loans. The successful payment is a positive step towards Cyprus meeting its long-term recovery goals, and the country is expected to continue making progress with the remaining milestones.
