Brussels: Today, the European Commission assessed Cyprus's fifth payment request under the Recovery and Resilience Facility, the centrepiece of NextGenerationEU. The Commission found that Cyprus satisfactorily completed 10 out of 11 milestones and all 8 targets set out in the Council Implementing Decision for the sixth grant instalment.
According to Cyprus News Agency, the £70.5 million payment request covers important steps in the delivery of reforms and investments that will drive positive change for citizens and businesses in Cyprus in the areas of public administration, justice, transport, tourism, education, healthcare, and energy efficiency renovations. Flagship measures include implementing a local administration reform, merging smaller municipalities for better efficiency and reduced costs, while empowering local authorities with increased responsibilities and a modern financial structure to support regional growth and transparency. Additionally, schools are being upgraded with modern digital equipment such as laptops, projectors, and digital boards, aimed at improving the learning environment and equipping students with essential digital skills.
However, one milestone related to green taxation (M19) was not satisfactorily fulfilled. As a result, the Commission will propose a suspension of the payment related to this milestone. Cyprus will then be granted additional time to complete the outstanding milestone, while still receiving a partial payment for the milestones that have been successfully fulfilled. This approach aligns with the RRF Regulation and the Commission's implementation guidelines published on 21 February 2023.
Next steps involve Cyprus, which submitted its fifth payment request on 1 August 2025, receiving a positive preliminary assessment from the Commission. This assessment will be forwarded to the Economic and Financial Committee (EFC), which has four weeks to deliver its opinion. Concurrently, the Commission has communicated to Cyprus the reasons for considering the milestone unsatisfactory. Cyprus now has one month to submit its observations to the Commission.
Should the Commission, after reviewing Cyprus's observations, confirm its assessment that the milestone remains unfulfilled, it will suspend the corresponding payment part. The suspended amount will be determined by the Commission's methodology for payment suspensions, which applies to all Member States and emphasizes key reform milestones. Cyprus will then have six months to address the outstanding commitment. At the end of this period, the Commission will reassess the fulfilment of the milestone. If satisfactorily fulfilled, the suspension will be lifted, and the payment will proceed.
The payment to Cyprus for the already approved milestones and targets can occur following the EFC's positive opinion and the Commission's adoption of a payment decision.