Cyprus Mail 12 February 2025 - by Kyriacos Nicolaou
The European Commission has issued a positive preliminary assessment for Cyprus’ request to receive €76.9 million under the NextGenerationEU programme, which aims to drive Europe’s recovery towards a greener, more digital, and competitive future.
According to the European Commission, Cyprus has successfully met the required milestones and targets to qualify for this third payment under the Recovery and Resilience Facility (RRF), the core funding instrument of NextGenerationEU.
This instalment of €76.9 million is part of Cyprus’ broader Recovery and Resilience Plan (RRP) and follows the implementation of nine key reforms and seven investment projects.
These initiatives aims to bring tangible benefits to Cypriot citizens and businesses in areas such as digitalisation, healthcare, environmental sustainability, energy, research, and connectivity.
The measures implemented as part of this funding request fall under two key pillars.
The first pillar concerns the facilitation of strategic investments. A new streamlined government process aims to reduce administrative burdens and enhance the efficiency of strategic investments in Cyprus, fostering economic growth.
The second pillar revolves electricity market reform. The Cyprus Transmission System Operator has installed a Market Management System to open up the electricity market to greater competition, promoting fairer pricing and improved efficiency.
The European Commission has forwarded its preliminary assessment to the Economic and Financial Committee (EFC), which has four weeks to provide its opinion.
If the EFC issues a positive response, the commission will proceed with a formal payment decision, allowing the disbursement of an additional €378.1 million to Cyprus.
Cyprus originally submitted its third payment request under the RRF on July 3, 2024.
This request was based on the successful completion of 16 pre-defined milestones and targets within its national Recovery and Resilience Plan.
The plan encompasses a wide range of reforms and investments designed to enhance the country’s economic and social sustainability while preparing for the green and digital transitions.
To date, Cyprus has been allocated a total of €1.2 billion under the RRF to support its national recovery efforts.
Once this latest payment is completed, the total disbursed funds to Cyprus under the recovery mechanism will reach €454 million, covering over 28 per cent of the plan’s approved milestones and objectives.
