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

Briefing 24-05-2023

In absolute figures, Cyprus's National Recovery and Resilience Plan amounts to €1.2 billion. Cyprus decided to use its allocation under the Recovery and Resilience Facility (RRF) predominantly in grants (€1.005 billion), with €200.3 million in loans. These resources represent around 0.2 % of the entire RRF, but are equal to 5.2 % of the country's gross domestic product (GDP) in 2019 (the RRF being 5.2 % of EU-27 GDP in 2019). They will underpin a vast programme of reforms and investments that aims to promote the recovery of the Cypriot economy (Cyprus's GDP dropped by 5.2 % in 2020), while addressing a number of structural weaknesses as well as pursuing major objectives such as the green transition and the digital transformation. In June 2022, Cyprus' grant allocation was revised downwards to 915.9 million (9.8%), based on the relevant provision in the RRF Regulation. Measures under Cyprus's plan are to be completed in 2026. Cyprus has so far received 20 % of the resources in the form of pre-financing and one payment for grants and loans. This is below the EU average. The remaining amounts in grants and loans will be paid depending on the implementation of the remaining 135 milestones and 122 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. Second edition. The 'NGEU delivery' briefings are updated at key stages throughout the lifecycle of the plans.