Today, the European Commission assessed Cyprus's fifth payment request under the Recovery and Resilience Facility , the centrepiece of NextGenerationEU .
The Commission found that Cyprus satisfactorily completed 10 out of 11 milestones and all 8 targets set out in the Council Implementing Decision for the sixth grant instalment.
The €70.5 million payment request covers important steps in the delivery of reforms and investments that will drive positive change for citizens and businesses in Cyprus in the areas of public administration, justice, transport, tourism, education, healthcare, and energy efficiency renovations.
Flagship measures include:
- Implementing a local administration reform, merging smaller municipalities for better efficiency and reduced costs, while empowering local authorities with increased responsibilities and a modern financial structure to support regional growth and transparency.
- Upgrading schools with modern digital equipment such as laptops, projectors, and digital boards, aimed at improving the learning environment and equipping students with essential digital skills.
However, the Commission also assessed that one milestone related to green taxation (M19) has not been satisfactorily fulfilled.
As a result, the Commission will propose a suspension of the payment related to this milestone. Cyprus will then be granted additional time to complete the outstanding milestone, while still receiving a partial payment for the milestones that have been successfully fulfilled.
This approach is in line with the RRF Regulation and the Commission's implementation guidelines published on 21 February 2023.
Next steps
Cyprus submitted its fifth payment request on 1 August 2025. The Commission has now sent its positive preliminary assessment of the milestones and targets that it considers satisfactorily fulfilled to the Economic and Financial Committee (EFC) , which has four weeks to deliver its opinion.
In parallel, the Commission has communicated to Cyprus the reasons why it considers the abovementioned milestone not to be satisfactorily fulfilled. Cyprus now has one month to submit its observations to the Commission.
Should the Commission, following Cyprus's observations, confirm its assessment that the milestone in question has not been satisfactorily fulfilled, it will suspend the corresponding part of the payment. The suspended amount will be determined by applying the Commission's methodology for payment suspensions (outlined in Annex II of the Communication published on 21 February 2023), which applies to all Member States, and which puts significant weight on key reform milestones.
From that moment, Cyprus will have a period of six months to take action and fulfil the outstanding commitment. At the end of this period, the Commission will assess whether this milestone has been satisfactorily fulfilled. If so, it will lift the suspension and proceed with the payment of the suspended amount.
The payment to Cyprus for the already greenlighted milestones and targets can take place following the EFC's positive opinion and the adoption of a payment decision by the Commission.
Background
The Cyprus' recovery and resilience plan includes a wide range of investments and reforms. The plan will be financed by €1.02 billion.
