The disbursement of a second payment to Cyprus under the Recovery and Resilience Mechanism, amounting to 115 million. euros (without pre-financing) in grants, the European Commission announced after meeting 37 reform and investment milestones agreed through the National Recovery and Resilience Plan.
The original request was submitted on December 15, 2023 for a payment of 152 million. euros (without pre-financing), in relation to 38 milestones, however as the Commission announced on September 16, 2024 in a preliminary assessment, a milestone related to taxation had not been satisfactorily met.
The Commission recognized the measures that Cyprus has already taken to meet this milestone, but notes that significant work remains to be done.
As for all member states, it is noted, payments from the Recovery and Resilience Fund, part of the NexGenerationEU program, depend on the implementation of the investments and reforms agreed by the Commission and the Republic of Cyprus.
The procedure by which it was decided not to disburse the full amount, known as the "suspension of payments" procedure, is provided for by the Regulation on the Recovery and Resilience Fund to give Member States additional time to meet the outstanding milestones, as explained in a statement published on 21 February 2023 and which applies to all Member States.
With its opinion, the Economic and Financial Committee of the EU, which is a technical committee for the coordination of the member states, paved the way for the issuance of a Commission decision on the disbursement of the funds, linked to the 37 milestones that have been assessed as satisfactorily fulfilled .
The reforms and investments covering the 115 million euros that have been approved, concern the sectors of public health, education, energy efficiency and renewable energy sources, protection against forest fires and floods, water management, agriculture, research and innovation, financial support of business, public administration, anti-corruption and taxation.
Reforms are also being promoted to improve the legal and institutional framework to fight corruption and to facilitate strategic investments.
In total, the Cyprus Recovery and Resilience Plan consists of €1.2 billion. euros, of which 1.02 billion euros in grants and 200 million euros in loans.
