Cyprus rushes to utilize €1 billion: four months left until EU deadline

Cyprus is accelerating its fulfillment of obligations under the EU Recovery and Resilience Facility, aiming to secure the remaining funds from the total package of €1.02 billion. To date, the country has utilized about 56% of the financing — €589 million — and must now complete key reforms and projects within a tight timeframe.

According to the European Commission's terms, all milestones must be achieved by the end of August, and payment requests submitted by the end of September. EU Commissioner Valdis Dombrovskis emphasized that there will be no extensions, as the fund is a "one-off instrument."

The Cypriot plan includes 128 measures and 222 milestones, with 61 related to reforms and 67 to investments. Authorities have already submitted seven out of nine funding requests, with two more — totaling €274 million — to be finalized by autumn.

To receive the final tranches, parliament must approve two key laws. The first concerns the introduction of a waste disposal tax: starting in 2027, it will be €10 per ton, subsequently rising to €70. The funds will be directed toward developing the recycling system and supporting municipalities. The second law relates to the creation of a Business Development Agency.

According to sources, more than a third of the conditions for the final payments have already been met, while the remaining projects are in their final stages and should be completed by the end of June.

Despite the strict deadlines, authorities maintain that there is no risk of losing funds. Utilization levels are expected to be high, and the plan is projected to be successfully completed in 2026.

An EU mission will visit the country in May and may suggest minor adjustments to the program. However, Brussels has already expressed confidence that Cyprus will be able to fulfill its commitments on time.