Only 57.7% of the European funds from the Recovery Fund have been disbursed so far by Cyprus, in the context of the implementation of the national plan and the implementation of a series of prerequisites for which it has committed.
Of the total amount of €1.02 billion. corresponding to the Republic, a total of €589 million has been disbursed, corresponding to six of the nine instalments. The disbursement of the 7th tranche, corresponding to an amount of €118 million, is expected soon. Specifically, the Ministry of Finance submitted the relevant payment request to the European Commission last December, which is being evaluated and the amount is expected to be collected.
According to data from the Ministry of Finance, European funds from the EU will soon amount to €707 million, which corresponds to 69% of the funding from the Recovery Fund. At the same time, the last payment requests will be submitted in September, which concern an amount of €313 million. The money is distributed as follows:
* For the disbursement of the last two instalments related to the 8th and 9th instalment. Initially, the number of instalments was 10 but they were reduced in 2025 as part of an amendment to the plan.
* For the suspended amount related to green taxation of €46 million.
It is recalled that in a recent report, the Audit Office had stated that the initial design of the plan is overoptimistic and with weaknesses. At the same time, he argued that the Cyprus plan included a disproportionately large number of milestones and targets in relation to the size of Cyprus and the amount allocated to it
The approval of two pieces of legislation is pending
It is worth mentioning that in order for the Republic to receive the total amount of €1.02 billion from the Recovery Fund, the Parliament will have to approve two pieces of legislation concerning the municipal waste landfill tax and the Cyprus Business Development Agency. Local authorities, as well as other bodies, react strongly to the former.
With the data so far, the parties do not seem to consent to the approval of the legislation. This milestone was included in the 6th dose and is now suspended. The new payment request will be submitted by the Cypriot authorities in case of implementation of the measure.
As far as the legislation for the establishment and operation of the Business Organization is concerned, it is included in the 9th payment request. It should be noted that according to the commitments made by the Republic to the EU, the Board of Directors of the Business Organization should be appointed by the end of August.
90% of milestones implemented
So far, Cyprus has achieved 90% of the milestones, i.e. it has delivered on 200 of the 221 targets it set in 2021. It should be noted that a milestone regarding green taxation has been partially completed. This milestone includes a carbon tax, a landfill tax and the imposition of an environmental water tax. The carbon tax on fuel, known as the green tax, will not be imposed, following a decision by the Cabinet, while the approval of the fees for waste is uncertain.
What's left
Of the remaining 20 milestones that concern the last two tranches of the Recovery Plan, the Ministry of Finance is expected to submit them next September. Specifically, the 19 milestones concern the investment measures of the Recovery plan, i.e. infrastructure projects and sponsorship schemes, which are almost all completed in July.
The relevant certificates of receipt and completion will be issued after all the required checks have been carried out within July to the beginning of August at the latest
Also, another objective concerns the legislation for the establishment of the Cyprus Business Development Agency. According to the Ministry of Finance, the completion of the green taxation milestone that is suspended in an amount of €46 million remains from a previous dose, which was partially achieved.
