The Plenary of the Parliament has approved two new laws aimed at standardizing the financial thresholds applicable to the simplified procedures for awarding public contracts.

Simultaneously, the new legislation establishes a mandatory requirement for contracting authorities and contracting entities to update the Electronic Public Procurement System (eProcurement System). It also prohibits any payments from being made by the contracting authority before the legally required notifications have been completed.

These regulatory changes were deemed necessary by its proponents to ensure the smooth functioning of public procurement processes in light of Cyprus' upcoming assumption of the Presidency of the Council of the European Union during the first half of 2026.

The revised financial thresholds for direct award contracts are as follows:

• For works and supply contracts previously limited to €2,000, and service contracts up to €5,000, the new unified limit is now set at €7,000.

• For works and supply contracts involving written or verbal quotes from a limited number of economic operators, previously capped at €15,000, the limit has been raised to €25,000, aligning with the existing threshold for service contracts.

• For works and supply contracts requiring offers from at least four economic operators, the previous €50,000 cap has now increased to €80,000, again matching current limits for service contracts.

During the parliamentary debate on these amendments, it was highlighted by its proponents that the changes offer greater flexibility to contracting authorities and entities of the Republic, particularly in the face of inflationary pressures.