Cyprus’s National Recovery and Resilience Plan: Latest state of play

Summary:

In absolute figures, Cyprus's amended national recovery and resilience plan (NRRP) has increased by €20 million to a total of €1.22 billion. Cyprus decided to use its allocation under the Recovery and Resilience Facility (RRF) predominantly in grants (€1 005 million), with €200.3 million in loans. In September 2023, Cyprus submitted a request to amend its NRRP, to which it added a new REPowerEU chapter, with an additional REPowerEU grant allocation of €52.5 million. It also requested to transfer a portion of its share of the Brexit Adjustment Reserve to its plan (€52 million). With these funds, and cutting some measures (as a result of the 2022 decrease in the allocation), the overall EU financial contribution to the amended plan amounts to €1 024 billion in grants (loans remain the same).These resources represent around 0.2 % of the entire RRF, and are equal to 5.15 % of the country's gross domestic product (GDP) in 2019. They underpin reforms and investments that aim to promote the recovery of the Cypriot economy, while addressing structural weaknesses and pursuing major objectives such as the green transition and the digital transformation. The revised plan has a stronger focus on the digital (24.6 % of the funds vs 23 % before) and green (45 %, vs 41 % before) transitions. Measures under Cyprus's plan are to be completed in 2026. Cyprus has so far received 19.8 % of the resources in the form of pre-financing and one payment for grants and loans (below the EU average). The remaining amounts will be paid depending on the implementation of the remaining 68 milestones and 121 targets. The European Parliament, which was a major advocate for the creation of a common EU recovery instrument, participates in interinstitutional forums for cooperation and discussion on its implementation and scrutinises the work of the European Commission. This briefing is one in a series covering all EU Member States. Third edition. The 'NGEU delivery' briefings are updated at key stages throughout the lifecycle of the plans.

This briefing is part of the series Next Generation EU (NGEU) delivery - How are the Member States doing?

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