Nicosia: Parliament 'has a big role to play' in helping the advancement of the drawdown from the Recovery and Resilience Facility in terms of advancing the legislative requirements to reach certain milestones, President of the European Court of Auditors, Tony Murphy, said on Thursday in a meeting with House of Representatives President, Annita Demetriou.
According to Cyprus News Agency, during the meeting at the House President's office, Demetriou welcomed Murphy and emphasized the necessity of adhering to principles and norms. She stressed the importance of defending societal values and principles, acknowledging the challenges faced by politicians in the current climate.
Murphy highlighted that all member states face common issues, such as the cost-of-living crisis and housing problems. He expressed a hope that the European Union institutions can contribute positively to the Cyprus EU Presidency, noting Cyprus's important role as it prepares for the upcoming EU budget for 2028-2034.
Murphy pointed out the varying expectations of member states from the EU budget, with some prioritizing cohesion, agriculture, and security, especially those near the Ukrainian border. He discussed the challenges of addressing these priorities with limited financial resources, as increasing member state contributions is currently not an option.
The alternative to increase borrowing was considered, but Murphy cautioned that borrowing is not without repayment obligations. He acknowledged Cyprus's efforts in reducing national debt and suggested that their approach could offer valuable insights to the EU Commission.
Murphy mentioned that the next EU budget is approximately 2.3 trillion euros, representing 1.26% of the EU's Gross National Income. He praised Cyprus for its success in absorbing funds and noted the significant role of the Recovery and Resilience Facility, which has already enabled Nicosia to draw nearly 50% of the allocated 1 billion euros.
As legislative elections approach, Murphy underscored the urgency for Parliament to ensure the effective use and drawdown of RRF funds by the end of August. He reiterated the pressure and responsibility on Parliament to meet these crucial deadlines and milestones.