Cyprus secures €120m EU recovery payout as reform milestones hit critical threshold

Cyprus secures €120m EU recovery payout as reform milestones hit critical threshold
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The European Commission has approved Cyprus’s sixth request for a €120 million payment under the EU’s NextGenerationEU recovery programme.

The Commission announced on Monday it had positively assessed the request under the Recovery and Resilience Facility, the main funding tool within NextGenerationEU.

Cyprus was found to have completed 22 milestones and five targets linked to the payment, based on requirements set out in a Council implementing decision.

Measures cited include a new school evaluation system, a cross-border health data exchange to support e-prescriptions and patient summaries, and legal acts enabling flexible working arrangements in the public sector.

The Commission also pointed to expanded online services for Cyprus’s building permit e-system, including e-signature and e-consultation.

Another measure involves expanding and connecting renewable energy and smart grid testing infrastructure at the University of Cyprus to the existing electricity grid.

What happens next

Cyprus submitted the payment request on 17 December 2025 and the Commission has sent its preliminary assessment to the Economic and Financial Committee, a body that brings together EU member states’ finance ministry and central bank officials.

The committee has four weeks to deliver its opinion, and the payment can be made after a positive opinion and the Commission adopts a payment decision.

Cyprus’s recovery and resilience plan is financed by €1.02 billion in EU grants and includes reforms and investments covering areas such as the green transition, digital transformation, health and education.

If the payment proceeds, total funds paid to Cyprus under the facility would reach €683 million, including €131 million in pre-financing received in September 2021 and a €21 million pre-payment under REPowerEU received in January 2024.

That would correspond to 67% of the funding in Cyprus’s plan, with 62% of milestones and targets fulfilled.


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