Cyprus lags in utilization of EU circular economy funds

A new European Parliament study titled 'Circular Economy and Cohesion Policy Funds,' published on Friday, indicates that Cyprus is significantly lagging in the utilization of Cohesion Policy resources dedicated to the circular economy. The report, requested by the Committee on Regional Development (REGI), identifies Cyprus, along with Croatia and Spain, as having 'very limited financial activation' regarding both the commitment and actual expenditure of allocated funds for the 2021-2027 period.

Data suggests that Cyprus, similar to Hungary, Latvia, Malta, and Romania, focuses its efforts primarily on centralized environmental infrastructure projects. In contrast, countries like the Netherlands, the Czech Republic, Finland, Austria, and Belgium have demonstrated notably higher absorption and commitment rates. The total EU budget for the circular economy stands at 12.7 billion euros, drawn from the Regional Development, Cohesion, and Just Transition funds, which accounts for approximately 3.3 percent of the total European budget for the current cycle.