Brussels: The European Commission granted on Friday partial preliminary approval to Cyprus's fifth payment request under the Recovery and Resilience Facility (RRF), a key pillar of the NextGenerationEU program.
According to Cyprus News Agency, the Commission's preliminary assessment revealed that Cyprus successfully completed 10 out of 11 milestones and all 8 targets set for the sixth tranche of grants. The request encompasses a total amount of £70.5 million and covers significant reforms and investments in areas such as public administration, justice, transport, tourism, education, health, and the energy upgrading of buildings.
Key interventions include local government reform, which involves the merger of smaller municipalities to improve efficiency, reduce costs, and strengthen the competencies of local authorities. Additionally, the package comprises digital modernization of schools, with provisions for laptops, projectors, and interactive whiteboards aimed at enhancing the learning environment and developing students' digital skills.
However, the Commission identified that one milestone related to green taxation (M19) has not yet been satisfactorily fulfilled. Consequently, a partial suspension of the payment corresponding to this milestone will be proposed. Cyprus will receive payment for the approved milestones and targets, with additional time granted to complete the pending milestone.
Cyprus submitted the payment request on August 1, 2025. Following this, the preliminary positive assessment was forwarded to the Economic and Financial Committee (EFC), which has a four-week deadline to issue an opinion. Meanwhile, Cyprus has one month to submit its observations regarding the unfulfilled milestone.
If the suspension is confirmed, Cyprus will have a six-month period to comply. If the milestone is met within the deadline, the Commission will lift the suspension and disburse the corresponding amount. Cyprus's Recovery and Resilience Plan includes an extensive package of reforms and investments, totaling £1.02 billion in EU funding.