(Commonwealth_ Cyprus) In a dynamic geopolitical and economic landscape, Finance Minister Makis Keravnos recently emphasized the importance of adaptability and immediate response capabilities. Speaking at the third annual event dedicated to Cyprus’ EU Recovery and Resilience Plan, he announced that the country has submitted an application for a fourth EU grant and is preparing to request a fifth. In the presence of Céline Gauer, Director General of the European Commission’s Recovery and Resilience Task Force (Recover), Keravnos highlighted a recent assessment that enables the disbursement of the second and third installments of funding. Cyprus applied for the fourth grant in July 2024, aiming to secure a total of €500 million in grants since 2021, representing approximately 50% of the country’s total allocation.
Keravnos outlined the government’s intention to submit a fifth grant application by the year’s end, targeting an additional €120 million. “We are implementing a robust plan focused on significant investments to enhance the resilience of our economy, with the overarching goal of fostering economic, social, and environmentally sustainable growth,” he stated. He reaffirmed the government’s commitment to achieving all milestones outlined in the plan. “In the remaining two years until the completion of our national strategy, our objective is effective implementation, including executing all reforms and completing the investments outlined in the recovery plan,” he added.
Despite the progress made, Keravnos acknowledged that there is still substantial work ahead to maximize the benefits of the recovery mechanism, ultimately serving the economy, society, public interests, and businesses. The Cyprus Recovery and Resilience Plan totals €1.2 billion, comprised of €1.02 billion in grants and €200 million in loans. It encompasses 282 milestones across 61 reforms and 75 investment initiatives. To date, the European Commission has disbursed over 21% of the allocated funds.
Cyprus faces significant challenges, including high greenhouse gas emissions, deficiencies in water and waste management, and the imperative to protect biodiversity. Key projects and reforms in the plan include upgrading state hospitals, addressing property-title system inadequacies, providing financing for startups and small to medium-sized enterprises, establishing a one-stop shop for renewable energy initiatives, enhancing building energy efficiency, and supporting the electricity interconnector with Europe.
Nikolaos Isaris, Head of the European Commission‘s representation in Cyprus, noted that the recent positive assessment of Cyprus’ second application reflects its ongoing efforts. He emphasized that the plan encompasses a comprehensive package aimed at addressing socioeconomic needs and facilitating a just, green, and digital transition.
Isaris asserted that the alignment of reforms and investments is strategic, recognizing the collective responsibility of the state, private sector, social partners, and EU institutions in this endeavor. He concluded that achieving these goals would represent a significant milestone in the contemporary history of Cyprus and Europe, positioning resilience as a pathway to improved quality of life for Cypriots and Europeans alike, in harmony with environmental objectives and technological advancements.
