At the online session of the EU Council of Finance Ministers (ECOFIN) on Monday, the National Plan for Recovery and Sustainability of Cyprus, amounting to € 1.2 billion, will be approved, paving the way for the implementation of the plan entitled “Cyprus tomorrow”.
The Cyprus Plan will be in the second group of countries, whose plans have been approved by the European Commission. The national recovery plans are also approved by ECOFIN.
Under the relevant European regulation, with the approval of the plan by the Council of Ministers, Cyprus will receive an advance payment, which corresponds to 13% of the total amount or approximately € 120 million.
The Cypriot plan provides a total of 1.2 billion, of which € 1 billion in sponsorships and € 0.23 billion in loans, with the Ministry of Finance estimating that these public investments will mobilize an additional € 1.4 billion in private funds.
According to estimates, the actions, investments and reforms included in the plan will increase GDP by 7% in the period 2022 – 2026 and 16.5% in the next 20 years. Employment is expected to increase by 1% over the next two years, 3% over the next five years and by 6% over the next 20 years, according to the Ministry of Education.
The Plan includes 58 reforms and 76 investments, while 41% of the total funds or € 501 million go to the green transition and 23% or € 282 million to the digital transition, thus exceeding the thresholds set by the Commission, ie 37 % and 20% respectively.
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