Cyprus on track to secure 97.3% of its RRF grant allocation.
Sept. 18 marked Cyprus’ final step in submitting requests to the Recovery and Resilience Facility (RRF), with the last milestones submitted under the plan approved back in 2021.
The journey to secure just over €1 billion in grants, tied to reforms and milestones, appears set to end on a positive note, despite the understandable concerns along the way.
It is worth noting that Cyprus has so far received €709 million, or approximately 70% of the €1.02 billion it was entitled to receive.
According to information obtained by Kathimerini, if all goes as planned, Cyprus will have received 97.3% of its available grant allocation by December 2026, an outcome that is, admittedly, particularly encouraging.
Over the past week, Cyprus received €120 million in grants after satisfactorily fulfilling the relevant milestones and targets. The payment followed its sixth payment request, submitted on Dec. 17, 2025, and approved by the European Commission on July 13, 2026.
It is worth noting that Cyprus has so far received €709 million, or approximately 70% of the €1.02 billion it was entitled to receive. That €709 million includes the advance payment it received at the start of the plan, as did all member states.
Excluding the adjustment for that advance payment, Cyprus has currently received €683 million in grants linked to completed milestones, equivalent to 67% of its allocation.
The news is better still: Cyprus is expected to receive another €285 million in December, based on its Sept. 18 request. This would bring the total received from the facility by the end of 2026 to €992 million, provided everything proceeds as planned.
The European Commission will have two months to assess the 85 milestones underpinning the €285 million payment and request clarifications concerning approximately 900 public contracts and 40 grant schemes.
A strong channel of communication with the Commission has been in place since May 2026 regarding the remaining milestones and reforms Cyprus needed to complete. Cyprus adopted the European officials’ recommendations, and the expectation is that everything will proceed smoothly through the end of the year, leaving these figures unchanged.
It was clear from the outset that securing the funding depended entirely on meeting, on time, the milestones and targets set for each investment and reform included in Cyprus’ plan.
Green taxation
Green taxation is the sole exception among the milestones Cyprus completed.
The milestone was amended, reducing the funding Cyprus would lose from €46 million to €28 million. This accounts for the projected total of €992 million and the 97.3% figure.
Green taxation caused considerable controversy. Ultimately, the solution reached represents a “win-win,” with the funding reduction working in consumers’ favour. Had the milestone been implemented as originally designed in 2021, we would now be seeing further increases in fuel prices.
The green taxation milestone was designated “C2.1R1.” Under its stated objectives, the legislation would introduce three measures.
First, a carbon tax on fuels used in sectors of the economy outside the EU’s greenhouse gas emissions trading system.
Second, a gradually introduced water levy reflecting the scarcity of this natural resource and the environmental cost of its use.
Third, a nationwide levy on household waste and landfill disposal.
The measures were originally due to be implemented by the first quarter of 2024. Successive extensions followed until the decision was taken to reduce the grant funding loss from €46 million to €28 million.
The €120 million instalment
Measures linked to the €120 million payment included the introduction of a new school evaluation system, the creation of a cross-border system for exchanging patients’ health data, and flexible working arrangements in the public sector.
They also included expanding online services within the electronic building-permit system and extending the University of Cyprus’ renewable energy and smart-grid testing infrastructure and connecting it to the electricity grid.
Member states had until Sept. 30, 2026, to submit their final RRF payment requests, together with all supporting evidence. The Commission has committed to completing all payments by Dec. 31, 2026.
The Recovery and Resilience Facility played a decisive role in cushioning the economic and social effects of the COVID-19 pandemic while positioning the EU for long-term success. With up to €573 billion available in grants and loans, it supported member states’ efforts.
Cyprus, it should be emphasized, chose not to take loans from the facility, although it could have received €200 million. Funding for the Greece-Cyprus-Israel electricity interconnection, the GSI subsea electricity transmission project, had been included in the plans for that loan.
The journey to secure just over €1 billion in grants, tied to reforms and milestones, appears set to end on a positive note, despite the understandable concerns along the way.
It is worth noting that Cyprus has so far received €709 million, or approximately 70% of the €1.02 billion it was entitled to receive.
According to information obtained by Kathimerini, if all goes as planned, Cyprus will have received 97.3% of its available grant allocation by December 2026, an outcome that is, admittedly, particularly encouraging.
Over the past week, Cyprus received €120 million in grants after satisfactorily fulfilling the relevant milestones and targets. The payment followed its sixth payment request, submitted on Dec. 17, 2025, and approved by the European Commission on July 13, 2026.
It is worth noting that Cyprus has so far received €709 million, or approximately 70% of the €1.02 billion it was entitled to receive. That €709 million includes the advance payment it received at the start of the plan, as did all member states.
Excluding the adjustment for that advance payment, Cyprus has currently received €683 million in grants linked to completed milestones, equivalent to 67% of its allocation.
The news is better still: Cyprus is expected to receive another €285 million in December, based on its Sept. 18 request. This would bring the total received from the facility by the end of 2026 to €992 million, provided everything proceeds as planned.
The European Commission will have two months to assess the 85 milestones underpinning the €285 million payment and request clarifications concerning approximately 900 public contracts and 40 grant schemes.
A strong channel of communication with the Commission has been in place since May 2026 regarding the remaining milestones and reforms Cyprus needed to complete. Cyprus adopted the European officials’ recommendations, and the expectation is that everything will proceed smoothly through the end of the year, leaving these figures unchanged.
It was clear from the outset that securing the funding depended entirely on meeting, on time, the milestones and targets set for each investment and reform included in Cyprus’ plan.
Green taxation
Green taxation is the sole exception among the milestones Cyprus completed.
The milestone was amended, reducing the funding Cyprus would lose from €46 million to €28 million. This accounts for the projected total of €992 million and the 97.3% figure.
Green taxation caused considerable controversy. Ultimately, the solution reached represents a “win-win,” with the funding reduction working in consumers’ favour. Had the milestone been implemented as originally designed in 2021, we would now be seeing further increases in fuel prices.
The green taxation milestone was designated “C2.1R1.” Under its stated objectives, the legislation would introduce three measures.
First, a carbon tax on fuels used in sectors of the economy outside the EU’s greenhouse gas emissions trading system.
Second, a gradually introduced water levy reflecting the scarcity of this natural resource and the environmental cost of its use.
Third, a nationwide levy on household waste and landfill disposal.
The measures were originally due to be implemented by the first quarter of 2024. Successive extensions followed until the decision was taken to reduce the grant funding loss from €46 million to €28 million.
The €120 million instalment
Measures linked to the €120 million payment included the introduction of a new school evaluation system, the creation of a cross-border system for exchanging patients’ health data, and flexible working arrangements in the public sector.
They also included expanding online services within the electronic building-permit system and extending the University of Cyprus’ renewable energy and smart-grid testing infrastructure and connecting it to the electricity grid.
Member states had until Sept. 30, 2026, to submit their final RRF payment requests, together with all supporting evidence. The Commission has committed to completing all payments by Dec. 31, 2026.
The Recovery and Resilience Facility played a decisive role in cushioning the economic and social effects of the COVID-19 pandemic while positioning the EU for long-term success. With up to €573 billion available in grants and loans, it supported member states’ efforts.
Cyprus, it should be emphasized, chose not to take loans from the facility, although it could have received €200 million. Funding for the Greece-Cyprus-Israel electricity interconnection, the GSI subsea electricity transmission project, had been included in the plans for that loan.
