The European Commission has disbursed €37 million to Cyprus under the Recovery and Resilience Facility (RRF), following the fulfilment of a previously uncompleted milestone related to tax reform.
The disbursement is part of the second and third payment requests under Cyprus’ Recovery and Resilience Plan, the country’s roadmap for post-pandemic recovery, backed by the EU’s NextGenerationEU funding instrument.
According to the Finance Ministry, an additional disbursement of €76 million is expected in August, pending the Commission’s formal approval of the evaluation linked to the fifth payment request.
In a press release issued by the Ministry of Finance, the Cypriot government welcomed the disbursement, which had been suspended in November 2024. At the time, the Commission determined that one milestone—related to a reform targeting aggressive tax planning—had not been satisfactorily met, leading to the suspension of €43 million in gross terms.
“In response, the Cypriot authorities swiftly adopted the necessary policy measures, including legislative amendments, which were passed by the House of Representatives and entered into force within the six-month deadline set by the Commission,” said the press release. Following this, Cyprus submitted a new payment request in May 2025.
In June, the European Commission concluded that the previously unfulfilled milestone had now been met, a finding confirmed by the Economic and Financial Committee. This enabled the release of the net amount of €37 million, taking into account pre-financing already received.
The Ministry of Finance also announced that an additional disbursement of €76 million is expected in August, pending the Commission’s formal approval of the evaluation linked to the fifth payment request.
Cyprus’ Recovery and Resilience Plan is financed with €1.2 billion—€1 billion in grants and €200 million in loans. Payments under the RRF are performance-based and depend on the timely and effective implementation of the agreed reforms and investments. The government reaffirmed its strong commitment to fully implementing the national plan.
(Source: CNA)
