Cyprus Advances with Recovery and Resilience Facility Funds

economy recovery

Cyprus is advancing with its economic recovery plan by requesting €77 million from the EU’s Recovery and Resilience Facility. The country has met 16 milestones towards a total of €1.2 billion aimed at digital transformation, environmental sustainability, and economic resilience, showcasing its commitment to EU goals.

What significant step has Cyprus taken towards its economic recovery using the EU’s Recovery and Resilience Facility (RRF)?

Cyprus has submitted a request for €77 million, the fourth tranche from the RRF, as part of its €1.2 billion economic rejuvenation plan. Successfully meeting 16 milestones, Cyprus demonstrates commitment to the EU’s goals, including digital transformation, environmental sustainability, and economic resilience.

Strides in Economic Recovery

Cyprus has recently made a significant step towards its economic recovery by submitting a request for a substantial financial tranche from the European Commission. This tranche, the fourth of its kind, amounts to a considerable €77 million. It is part of the ongoing efforts under the Recovery and Resilience Facility (RRF), a key instrument at the heart of the EU’s response to the pandemic’s financial repercussions.

In adherence to the strict guidelines set by the RRF, the Cypriot government meticulously completed 16 milestones and targets. These are part of a larger blueprint for economic rejuvenation that totals an impressive €1.2 billion. The finance ministry disclosed that Cyprus has already been the beneficiary of €263 million from the RRF. This figure is poised to increase substantially once the second and third tranches are accounted for, provided that they pass the European Commission’s stringent evaluations.

Towards a Sustainable Future

Looking ahead, the island nation has its sights set on the fifth tranche, anticipated to be around €120 million. This future request, planned for the tail end of 2024, will encompass an ambitious 28 milestones. Payments from the RRF, dating back to 2021, are expected to hit the €500 million mark. This represents a significant 50% of the total funds allocated to Cyprus, showcasing the country’s commitment to utilizing these funds efficiently.

Finance Minister Makis Keravnos expressed gratitude for the European Commission’s partnership. He also recognized the efforts of technocrats in the public service, ministers, deputy ministers, and parliamentary parties. Their collaborative efforts have been instrumental in accomplishing the prerequisites for these tranches. The Cyprus Recovery and Resilience plan, updated as recently as December 2023, has been designed to catalyze grants and loans amounting to €1.22 billion. This plan is comprehensive, featuring 136 measures that include 61 reforms and 75 investments. The areas of policy it covers are pivotal to fostering sustainable growth, such as embracing digital transformation, promoting environmental sustainability, and enhancing economic resilience.

Commitment to European Collaboration

The actions of the Cypriot government demonstrate a firm commitment to working within the European framework. By achieving the outlined milestones and cooperating closely with the European Commission, Cyprus is not only ensuring financial support but also aligning with broader European goals. These goals include enhancing digital capabilities, transitioning to a green economy, and reinforcing economic and social resilience across member states.

Finance Minister Makis Keravnos, in his statement, underscored the importance of the collective effort. The approval of necessary legislation by parliamentary parties served as a crucial foundation for the successful request of funds. This teamwork is a testament to the country’s dedication to meeting European standards and progressing towards a robust and inclusive economic future.

Cyprus’s progress with the RRF signals a proactive approach to overcoming economic challenges. With ongoing reforms and investments, the nation is poised to fortify its economy, setting a precedent for resilience and collaboration in the face of adversity.

How much money has Cyprus requested from the EU’s Recovery and Resilience Facility (RRF) for its economic recovery plan?

Cyprus has requested €77 million from the RRF as the fourth tranche towards its total goal of €1.2 billion for economic rejuvenation.

What are the main areas of focus for Cyprus’s economic recovery plan funded by the EU’s Recovery and Resilience Facility (RRF)?

Cyprus’s economic recovery plan, supported by the RRF, focuses on digital transformation, environmental sustainability, and economic resilience as key areas for advancement.

How many milestones has Cyprus met in its economic recovery plan towards accessing funds from the EU’s Recovery and Resilience Facility (RRF)?

Cyprus has successfully met 16 milestones as part of its economic recovery plan, showcasing its commitment to the EU’s goals and requirements for accessing RRF funds.

What future plans does Cyprus have regarding the EU’s Recovery and Resilience Facility (RRF) funds?

Cyprus is anticipating requesting the fifth tranche of around €120 million at the end of 2024, with 28 milestones planned. The nation aims to utilize the RRF funds efficiently for sustainable growth and economic resilience.

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