Cyprus recovery program faces delays

The interim evaluation by the Commission of Cyprus’ Recovery and Resilience Facility program highlights significant delays, although acknowledging “certain risks of delay.”

Cyprus is noted for its substantial lag in meeting commitments to the Recovery Mechanism, with several governmental decisions in recent months yet to be evaluated.

According to the Cyprus News Agency, the evaluation reveals that Cyprus has achieved only 14 out of 73 objectives outlined in the indicative programming for the first quarter of 2023, out of a total of 271 milestones and targets.

The Commission recommends acceleration of implementation for Cyprus, the Czech Republic, and Portugal, all facing similar delays. Significant delays are recorded for Hungary and Poland, while Germany and Ireland face significant delay risks.

For other member states, there are “increasing risks of delays” (Italy, Romania, Bulgaria, Slovenia, Belgium), “no risks of delays” (Estonia, France, Luxembourg, Netherlands, Sweden, Finland).

Positive comments are made regarding Cyprus’ decisions to address aggressive tax planning, considered a significant step forward, according to the Commission’s assessment.

In terms of supporting small and medium-sized enterprises (SMEs), Cyprus ranks highest among member states with over 40 measures, just above Italy.

Other significant projects and reforms under Cyprus’ Recovery Plan, as noted by the Commission, include upgrading public hospitals, addressing property title system deficiencies, financing for startups and innovation, establishing a digital information and licensing center, and supporting the Great Sea Interconnector electric cable project linking to mainland Europe.

Across Europe, over 1,150 milestones and targets set by member states for reforms and investments within the program have been achieved, with nearly €225 billion disbursed, including €67 billion as pre-financing to boost investments.