The European Commission’s new annual report on the Recovery and Resilience Facility (RRF) finds Cyprus progressing — but not fast enough. While more than 30% of its RRF envelope has been disbursed, Brussels urges Nicosia to “increase the pace” so every reform and investment is completed by the August 2026 deadline.

Across the European Union, disbursements reached €362 billion by 31 August 2025 — about 55% of the Facility’s total. Grants are flowing faster than loans, yet the Commission warns that all Member States must complete their milestones and targets by 31 August 2026. The last payment requests should be submitted by 30 September 2026, and the final legal deadline for EU payments is 31 December 2026.

The pace of implementation differs among Member States.

6 Member States (Denmark, Estonia, France, Italy, Germany and Malta) have received payments corresponding to more than 65% of their total RRF envelope, and another 4 Member States (Greece, Latvia, Portugal and Slovakia) have received more than 50% of their allocation.

15 Member States (Austria, Belgium, Croatia, Cyprus, Czechia, Finland, Ireland, Lithuania, Luxembourg, Netherlands, Poland, Romania, Slovenia, Spain and Sweden) have reached disbursements amounting to more than 30% of their RRF allocation, while 2 Member States (Bulgaria and Hungary) remain below the 30% threshold.

As the data show, by the end of August 2025, Cyprus had disbursed just over 30% of its total allocation, placing it among 15 Member States that have crossed that threshold. However, this remains below the EU average of 55%, signalling a moderate pace of progress.

According to the Country-Specific Recommendations issued in June 2025, Cyprus remains in the group of countries with 50–85% of milestones and targets still pending—prompting the Commission to call for faster implementation. Specifically, as of mid-2025, Cyprus had fulfilled only 24% of its Recovery and Resilience Plan milestones — among the slowest performers in the EU, a vulnerability highlighted in the European Commission’s latest assessment of Cyprus.

The Commission urges all Member States, including Cyprus, to simplify and refocus their plans by the end of 2025, retaining only measures that can be fully completed by 31 August 2026 to avoid loss of funding.

In its comparative analysis of the 100 largest final recipients of RRF funds, the Commission highlights a distinctive trend in Cyprus. Among private-sector beneficiaries, Cyprus shows the highest share of start-ups, linked to its Innovation Funding Programme for SMEs and start-ups focused on open-access research infrastructures - underlining the country’s efforts to channel part of its RRF funds into innovation-driven entrepreneurship.

Cyprus was one of the few countries to face a temporary suspension of funds. In November 2024, the Commission froze €43.1 million in grants pending the fulfilment of a specific milestone. The suspension was fully lifted in July 2025, after the milestone was reassessed as completed.

Overall, fewer than 1% of all RRF milestones and targets across the EU have ever been suspended — and in closed cases, 98% of the funds were ultimately disbursed.

• Complete all milestones and targets: 31 August 2026

• Final payment request submission: by 30 September 2026

• Last possible EU payments: 31 December 2026

With less than a year remaining until the Facility’s completion deadline, Cyprus must translate commitments into verified results to secure the remaining funds. The Commission’s message is clear: simplify, accelerate, and deliver — or risk leaving millions of euros untapped.