Filenews 7 April 2021
Consultations between the Ministry of Finance and the European Commission on the details of the various projects and reforms proposed by the Ministry, totalling around €1.2 billion, are continuing for funding from the European Union Recovery and Resilience Facility (Next Generation EU) in the period 2021 to 2026.
In 2021, Cyprus will receive an amount, as a down payment, of around €120 million.
In particular, a competent source of the Ministry of Finance told the CYPE that a first round of consultations had already been held with the European Commission, which began last January, when the original text of Cyprus' proposals was sent, adding that the first round of consultations examined, in particular the important projects and reforms that should be included in the text of proposals, and "a second round of technical consultations is currently taking place. , which now examines the details of the definition of the targets (quantities) and milestones to be set and which are high in the Commission's priorities'.
The objective of the EU Recovery Fund, from which Cyprus can raise a total of €968 million for project and reform funding, is a sustainable recovery from the COVID-19 crisis, addressing its economic and social consequences and the long-term shielding of EU economies.
At this stage, in cooperation with the Commission, the objectives and milestones are set on the basis of Cyprus' recommendations, on the basis of which European funds will be released in the future if the objectives set are achieved, he noted.
He said the gradual release of European funds from the Commission would depend on the success of Cyprus in indicators and milestones, as defined and included in the final text of proposals of the Republic of Cyprus.
The aim, as stated by the same source, is to complete the debate on the proposals in the Directorate-General for Finance of the European Commission (DGECFIN) and, once approved by the Council of Ministers, the final text will be submitted to the Commission by the end of April 2021, as the relevant European regulation provides, in order to be subsequently approved by the Commission.
Disbursement of €120 million in 2021
The support source told the CYPE that once the final text of proposals has been adopted by the Commission, which is expected to be done before the end of next June, Cyprus will receive an amount, as an advance, as provided for in the relevant European regulation, amounting to 13% of the total amount attributable to Cyprus or about €120 million.
Regarding how the Recovery Fund funds should be disbursed, the source of the SUPPORT, having noted that it will not be the same procedure as the EU Structural Funds where the project must be completed in order to disburse the fund, said that in the timetables for the completion of a project or reform to be funded by the Recovery Fund, intermediate objectives and milestones are set which, if achieved, Cyprus will be able to receive the relevant allocation. before the project is completed.
Cyprus' proposals are divided into five priority axes, which are Public Health and Civil Protection – Lessons from the Pandemic, Accelerating the Transition to a Green Economy, Strengthening the Competitiveness and Resilience of the Economy, Towards a Digital Age and Labour Market and Education and Human Capital. Priority axes consist of 14 - 15 Components.
Source: Eyenews/CYP
