Cyprus has formally requested the European Union to review its package of 133 reform and investment measures, including 271 milestones, which are crucial for the country to secure €1.2 billion from the Recovery and Resilience Facility. The need for reassessment arises from the emergence of new challenges and data resulting from the energy crisis in Europe following the war in Ukraine and additional grants allocated by the EU.

As Brief reports, according to the Directorate-General for Development, approximately 50 out of the 133 measures will undergo modifications to adapt to the current conditions and overcome objective difficulties faced by all member states. These difficulties are related to the aftermath of the war and the ongoing energy crisis.

Acknowledging the changing circumstances, the EU introduced a new regulation in January 2023, allowing member states to revise their Recovery and Resilience Plans to accommodate the evolving situation caused by the energy crisis following the pandemic and the war in Ukraine.

One of the key concerns is the unavoidable delays in implementing 18 milestones needed for the disbursement of the €85 million second installment, as well as 30 milestones for the third installment. These milestones required submissions by December 2022 and June 2023, respectively, resulting in delays in several member states. To address these challenges, some delayed milestones will be transferred to subsequent installments, ensuring that the disbursement of the second and third installments occurs before the end of 2023. This strategic move aims to prevent any financial losses for Cyprus from the Recovery and Resilience Facility, as requested by the President.

The amendments proposed for the Recovery and Resilience Plan focus on making it more feasible to achieve the milestones. The Directorate-General for Development suggests adjusting the timelines to improve efficiency and ensure that no funds are lost due to unmet objectives. The revised plan includes new energy projects totaling €104 million. Additionally, it is recommended to exclude problematic projects amounting to €90 million, which have experienced delays, from the package.

In response to Cyprus's request for a review, the EU aims to approve the revised plan swiftly. The draft for the proposed changes has already been prepared and is expected to be brought before the Cabinet for approval shortly. Overall, the requested modifications will allow Cyprus to gain an additional €14 million from the R&R Plan, securing the much-needed funds to bolster its economy and strengthen its resilience against the current economic challenges faced by the nation.