Mistakes in planning, delays and the danger of losing funds

AKEL on the government’s policy on the Recovery Plan:

 

19 March 2026, AKEL C.C. Press Office, Nicosia

The flagship announcements made by the previous Anastasiades–DISY government regarding the Recovery and Resilience Plan have fallen apart.

The Audit Office’s Special Report confirms all what AKEL has been pointing out all along since 2021, stressing that a flood of announcements will not address the serious structural problems. AKEL had counter-proposed, at the crucial time, that there should be a substantive social dialogue conducted so that the Plan would be functional, implementable, and, above all, for the benefit of society.

The Report of the Audit Office confirms that the objectives set by the previous government and reaffirmed by the current one, were not sufficient or well-thought-out, while serious institutional and administrative weaknesses are also identified, which led to unrealistic timeframes, multiple amendments, delays, and the danger of losing millions that could have supported the real economy.

The most striking example concerns the insistence of the Anastasiades and Christodoulides governments—without being obliged to do so—to include “green” taxes on fuel, waste, and water in the Plan, which, instead of achieving the environmental goals for which they are intended, impose additional economic burdens on society.

AKEL recognizes the role of the Recovery Plan and every financial instrument. However, on their own, they cannot address the Cyprus economy’s serious structural problems, high energy costs, and income inequalities unless there is appropriate content and proper targeting to address these challenges and promote policies that benefit society.