European Commission Allocates €21.2 Million to Cyprus from Recovery Fund

The European Commission has approved the payment of 21.2 million euros to Cyprus under the Recovery and Resilience Facility (RRF), which is part of the NextGenerationEU program for post-pandemic economic recovery.

The funds are intended to support reforms and investments in various sectors, including public administration, the judiciary, transport, tourism, education, healthcare, and energy efficiency projects.

Cyprus submitted its fifth funding request in August 2025. The total amount of the application was 70.5 million euros and was linked to the implementation of several reforms and investment projects.

However, the European Commission approved only a portion of the amount. The reason is that one of the milestones, related to the reform of the green taxation system, has not yet been completed. The country will receive the remaining funds once this condition is met.

In total, under the national recovery plan, Cyprus is set to receive approximately 1.02 billion euros in grants. By 2025, the country had already been paid roughly 568 million euros, representing nearly half of the entire program.

Funding from the facility is provided in stages — upon the completion of reforms and investment projects agreed with the EU. Key focus areas include the digitalization of public services, modernization of the judicial system, and the development of green energy.