Cyprus has successfully passed 60% of the legislative milestones required under its Recovery and Resilience Plan, approving 23 out of the 38 necessary laws, according to Director of the Recovery and Resilience Directorate Anthoula Savvides.

Speaking at the 3rd Annual Event on the Recovery and Resilience Plan in Nicosia, Savvides outlined the progress, stating that out of the 23 laws enacted, two are related to the green transition, six to public administration and local government reform, three to anti-corruption measures, four to the financial and tax sectors, three to investments and licensing facilitation, and three to employment, social welfare, and education reforms.

Regarding the financial implementation of the plan, Savvides reported that approximately 90% of the budget has been activated, with 55%, or €660 million, committed to contracts with contractors or final recipients. She also said that around €280 million has already been paid out, significantly exceeding the amount received from the European Commission.

“This is why the results and actual implementation are not fully reflected by the submission of payment requests and their collection. What we need to ensure is that by the end of 2026, everything will be completed on time,” she stressed.

Referring to the achievement of the 282 milestones and targets of the plan, she said 68 have already been included in payment requests up to the fourth grant disbursement. An additional 34 milestones are completed and will be submitted for the next grant payments, with the fifth disbursement to be submitted by the end of this year and the sixth by mid-2025. The remaining 180 milestones are currently under implementation, with bi-monthly reports submitted to the Cabinet by the coordinating authority to ensure timely interventions when needed, she added.

In terms of payments, Savvides said that €263 million has been received so far, with an additional €152 million and €77 million expected from the second, third, and fourth grant disbursements already submitted. Two disbursements have been positively evaluated, with one milestone exception, while the fourth is under review by the European Commission.

Savvides further highlighted that through the plan, 30,000 households have received support for using renewable energy sources, including 3,300 vulnerable energy consumers. Additionally, grants were awarded to 2,600 citizens for the purchase of electric vehicles, and 70,000 households received support to upgrade their connectivity to ultra-high-speed networks.

She also noted that over 1,200 individuals will benefit annually from new, modernised healthcare facilities. Photovoltaic systems have been installed in schools, and residents in Nicosia are benefitting from flood protection projects.

Savvides emphasized that all pillars of the plan were progressing satisfactorily. In the public health and civil protection pillar, 32% of the milestones have been completed, while 28% of the green transition milestones and 46% of those related to resilience and competitiveness have been achieved. In the digital transition, 33% of the milestones have been completed, while in the employment, education, and social protection pillar, 29% have been met.

Regarding the new Repower EU chapter, 13% of the milestones have been implemented, with the establishment of a regulatory framework for energy communities underway and several grant schemes in progress.

Savvides also mentioned that a new amendment to the plan was being developed in collaboration with the European Commission to ensure its successful completion by 2026.

EU Official: Cyprus making strong Progress, but challenges remain

Director-General of the European Commission's Recovery and Resilience Task Force (RECOVER) Celine Gauer, praised Cyprus for its progress in implementing reforms and investments under the EU Recovery and Resilience Facility, but stressed the significant challenges ahead as the 2026 deadline approaches.

Speaking at the 3rd Annual Event for Cyprus' Recovery and Resilience Plan in Nicosia, Gauer pointed the achievements and challenges of the EU’s Recovery and Resilience Facility, with particular focus on Cyprus. Gauer acknowledged that while the EU as a whole has already disbursed €267 billion—50% of the grants and 41% of the total envelope, Cyprus was slightly behind, having absorbed only 22% of its allocated grant. However, she expressed confidence that Cyprus would catch up by early next year, reaching the 50% benchmark.

Gauer emphasized that the progress made so far, reflected the hard work being done to achieve the recovery’s goals.

" The numbers recalled by the ministers are only a symptom. Only a sign of what is underneath and what really matters is what they correspond to” she said, highlighting the implementation of ambitious reforms and investments, which are not only addressing the immediate recovery from the COVID-19 pandemic but also strengthening the resilience of the economy.

She referred to extremely important reforms on the fight against corruption in Cyprus very early in the implementation and the efforts in investing in renewables, translating very quickly in more electricity injected in the grid.

“All of these reforms are already being rolled out, are already producing effects and are already benefiting citizens and business. The same goes for the investments”, she said.  

She also praised Cyprus’ robust audit and control systems, which have ensured transparency and accountability in the use of recovery funds.

However, Gauer cautioned that significant challenges remain. As she said, the 2026 deadline for finalizing all reforms and investments under the RRF was looming, and Cyprus, like other member states, will need to table its final payment request by that date.

She pointed out that while 60% of the necessary reforms have already been passed by the Cypriot Parliament, the remaining 40% are crucial and will require substantial effort to implement. She cited challenges in areas like early childhood education, water management, and tax reform.

Gauer commended the Cypriot authorities for their focus and commitment to the plan, including regular meetings of the Council of Ministers to monitor progress.

On the investment front, Gauer stressed the importance of ensuring that businesses seize the opportunities created by the RRF. She stressed that the European Commission was ready to work closely with Cyprus to address any issues that arise.