The European Commission has released a second installment of €115 million to Cyprus under the Recovery and Resilience Facility (RRF). This disbursement follows the successful completion of 37 milestones and targets outlined in Cyprus’ National Recovery and Resilience Plan.

Initial Request and Adjustments
Cyprus initially submitted a request for €152 million (excluding pre-financing) on December 15, 2023, covering 38 milestones. However, during a preliminary assessment on September 16, 2024, the European Commission determined that one taxation-related milestone had not been fully achieved. While Cyprus had taken significant steps toward meeting this requirement, additional work remains necessary, as noted in a press release from the Commission.

Performance-Based Payments
Under the RRF, which is part of the NextGenerationEU initiative, payments are conditional on member states’ progress in implementing reforms and investments detailed in their Recovery and Resilience Plans. In this instance, the Commission employed a “payment suspension” procedure, a mechanism outlined in RRF regulations. This procedure allows member states additional time to meet unmet milestones, as explained in a communication issued on February 21, 2023.

EU Committee’s Role
The Economic and Financial Committee (EFC) of the EU, a body tasked with promoting policy coordination among member states, reviewed Cyprus’ progress. The EFC’s positive opinion enabled the Commission to approve the release of funds for the 37 milestones that were satisfactorily met.

Areas of Investment and Reform
The disbursed funds will support reforms and projects across diverse sectors, including:

Additional reforms aim to bolster Cyprus’ legal and institutional frameworks to combat corruption and facilitate strategic investments.

Cyprus’ Overall Recovery Plan
Cyprus’ Recovery and Resilience Plan is set to receive total funding of €1.2 billion, comprising €1.02 billion in grants and €200 million in loans.

Source: Cyprus Mail