Cyprus has absorbed 80% of EU funding since 2004

Lawmakers heard on Thursday that Cyprus has absorbed almost 80 per cent of EU funds allocated to it since joining the bloc – a good rate of absorption – but needs to keep up the reform drive if it’s to draw some €2.9 billion more earmarked for the 2021 to 2027 period.

A presentation of the state of play regarding EU funds was given to MPs by Lazaros Lazarou, member of the European Court of Auditors.

Up until September 30 this year, Cyprus’ absorption rate stood at 79 per cent. The country ranked 10th in the EU in terms of absorbing funds.

For the current programme period – 2021 to 2027 – the island is eligible for a total of €2.9 billion, including the €1.2 billion associated with its national recovery and resilience plan.

The European Commission approved Cyprus’ national plan in July 2021. The €1.2 billion will be disbursed in tranches, provided the island enacts a series of reforms in various areas – justice, local government, the environment.

According to Lazarou, Cyprus has already received an advance payment of €57 million from the EU”s Recovery and Resilience Facility (RRF).

On July 28 this year, the Republic formally requested from the European Commission the payment of the first tranche of €85 million from the RRF.

By October 11, the €85 million had not been disbursed yet.

Since acceding to the EU in 2004, Cyprus has contributed €3.3 billion to the bloc, while receiving €3.79 billion – making the island a net recipient of €460 million.

Lazarou said the situation varies from year to year – in some years, Cyprus pays into the EU more than it receives, and in others the opposite occurs.

Following Lazarou’s briefing, Disy MP Onoufrios Koulla said the numbers show that Cyprus has solid mechanisms enabling it to absorb EU funds.

“It is something we should be proud of, namely that Cyprus has not lost a single euro from what we had coming from EU funds,” he noted.

But the island must keep up the good work and implement the promised reforms in order to draw the funds earmarked for the current programme period.