Cyprus to lose 28 million euros in recovery funds due to missed green targets

As of August 31, 2026, the deadline for EU member states to implement requirements for the Recovery and Resilience Facility expires. Cyprus has successfully completed 220 out of 221 total requirements. However, due to the partial failure to implement reforms related to the green transition, specifically the carbon tax and waste disposal fees, the country will lose 28 million euros in funding.

Consequently, the total funding Cyprus will receive stands at 992 million euros instead of the initially projected 1.02 billion euros. Despite this shortfall, the Recovery and Resilience Plan has facilitated significant structural reforms across the country. These include the expansion of compulsory preschool education starting from age four, the implementation of a new teacher performance evaluation system, and the introduction of a quality-based reimbursement model in the healthcare sector.

The Cypriot Recovery and Resilience Plan, which commenced in 2021, reaches its conclusion at the end of the year. This final assessment period marks the end of a multi-year effort to modernize public infrastructure and administrative systems through European financial support.