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The prospects for the implementation of the ceasefire agreement in Gaza, as well as the role that Cyprus and Jordan can play in regional stability and reconstruction, were discussed by President, Nikos Christodoulides, and King of Jordan Abdullah, on the sidelines of the Gaza Summit taking place in Sharm el-Sheikh.

According to a post on X by Government Spokesperson, Konstantinos Letymbiotis, President Christodoulides held a bilateral meeting with the King of Jordan, Abdullah, on the sidelines of the Gaza Summit taking place in Sharm el-Sheikh.

‘During the meeting, they exchanged views on the latest developments in the region, the prospects for the implementation of the ceasefire agreement and the next day in Gaza, as well as on the role that Cyprus and Jordan can play in regional stability and reconstruction,’ he adds.

In earlier post, Letymbiotis refers to Cyprus’ participation in the international summit on Gaza, noting that the country, as an actor of regional stability, ‘continues to confirm its role as a reliable partner’, in the region.

Referring to Cyprus’ “continuous diplomatic presence, national consistency and political credibility”, conditions, he noted, that were “cultivated and established” by President Christodoulides’ Government, Letymbiotis said the country participates in the summit “at an historic juncture for the Middle East, a defining moment for the creation of conditions of security and stability in a region that has been tested by tensions and uncertainty.’

In September 2025, total government employment reached 52,530 persons, recording a slight decrease of 50 employees (-0.1%) compared to September 2024, according to the Statistical Service of Cyprus.

Employment in the Civil Service and in the Security Forces declined by 1% and 2.4% respectively, while employment in the Educational Service increased by 3.3%.

Compared to September 2024, the largest increase in total government employment is observed in the category of employees with contracts of definite duration (4.8%) and the largest decrease is observed in the category of employees with contracts of indefinite duration (-2.3%).

Focusing on employee categories by Service, the largest percentage increase in employment is recorded in employees with contracts of definite duration in the Educational Service (15.5%), while the largest percentage decrease in employment is observed for employees with contracts of definite duration in the Security Forces (-70.8%).

It is noted that the significant decrease observed in the number of employees with contracts of definite duration in the Security Forces (-70.8%) is mainly attributed to the completion and non-renewal of specific definite duration contracts in July 2025.

For the period January – September 2025 the average total government employment increased by 0.7% compared to the corresponding period of 2024.

On Thursday, 16 October, European Commissioner for Energy Dan Jørgensen is expected to hold a teleconference with Cyprus’ Minister of Energy, Commerce, and Industry, George Papanastasiou, and Greece’s Minister of Environment and Energy, Stavros Papastavrou, who oversee energy matters in their respective countries. The focus of the teleconference will be the Greece-Cyprus Electrical Interconnection, the Great Sea Interconnector (GSI). The meeting is confirmed by the publication of the Commissioner’s weekly agenda by the European Commission.

The two ministers had met in Athens last week, where they agreed on the transfer of ownership and operator licenses for the GSI from the Cyprus Energy Regulatory Authority (CERA) to Greece’s Independent Power Transmission Operator (IPTO), as officially published last Friday in the Official Gazette of the Republic of Cyprus.

Cyprus Finance Minister Makis Keravnos presented the 2026 state budget to Parliament’s Finance Committee on Monday, outlining measures for fiscal stability, social support, and economic growth, while rejecting claims that he withheld studies on the Great Sea Interconnector (GSI) electricity project.

The Minister defended his handling of the GSI project, rejecting claims that his ministry withheld key studies on the project’s viability.

Responding to comments by Greece’s Energy Minister, Keravnos said reports suggesting he had ‘kept back’ studies on the Cyprus-Greece-Israel electricity link were ‘fake news.’ He clarified that all studies were commissioned by the Energy Ministry, submitted properly, and shared with both the Cypriot and former Greek ?nergy ?inisters. ‘Everyone is aware of the studies and their findings,’ he said, adding that while he remains open to any project that benefits the economy, he also has a duty to assess financial implications and voice concerns.

Keravnos also wondered about claims the European Commission is pushing the project forward despite doubts over its financial sustainability, recalling that the European Investment Bank declined to finance it for that very reason. Both the GSI and the halted Vasilikos LNG terminal, he said, are listed as fiscal risks in the 2026 budget.

Tax reform and spending priorities

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Keravnos announced that the long-awaited tax reform package is nearly ready and will be submitted to Parliament ‘within the month or, at the latest, next month.’ The reform, he said, aims to maintain state revenues while achieving a fairer distribution of the tax burden. Measures include higher thresholds for large families and those leaving the workforce through voluntary exit schemes, and targeted support for children, housing, and the green transition.

He stressed that preserving Cyprus’ ‘A’ credit rating from international agencies depends on fiscal prudence and reforms that enhance fairness and resilience. ‘This is not social policy per se, but it brings multiple benefits to households and the economy,’ he said.

Addressing the public sector wage cost, Keravnos said its expansion is not due to staff numbers but to ‘the many pay scales and automatic increments’ under review. He noted that the wage share of total expenditure has dropped to 27.5% in the 2026 budget, compared to around 30-35% in previous decades. Teleworking and rationalising transfers and secondments are among the measures under consideration.

Fiscal risks in State Budget report

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The Minister of Finance referred to the Fiscal Risk Report, which identifies a series of factors that could potentially undermine the country’s fiscal stability.

According to the report, one of the main risks concerns the possible activation of liabilities arising from state guarantees, including unsustainable pension funds and pending court decisions that may result in significant fiscal burdens.

The report also flags concerns about the financial performance of state-owned entities and local authorities, as well as the risk of fines from the European Union for non-compliance with the acquis communautaire.

Serious concern was also expressed over the continued need to finance deficits of the State Health Services Organisation (OKYpY) beyond the period provided by law and its extensions.

The report further lists as significant fiscal risks the suspension of works on the Vasiliko natural gas terminal project and uncertainties surrounding the Greece-Cyprus-Israel electricity interconnection (GSI).

It also highlights the potential for unforeseen expenditures linked to climate change, such as wildfires, drought, and increased agricultural compensation payments.

The report also draws attention to the broader geopolitical and economic developments within major EU economies currently facing headwinds – developments that may affect the eurozone as a whole and, by extension, Cyprus. The issue of tariffs in international trade relations is also mentioned among the external risks.

Growth, defence and social policy

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The 2026 budget projects revenue of pound 10.7 billion and expenditure of pound 13.7 billion, with a primary surplus of 5% of GDP and an overall surplus of 3.9%. Growth is forecast at 3.1% for 2026, inflation at 2.1%, and unemployment falling to 4.5% by 2028. Public debt is expected to decline to 52.7% of GDP.

Keravnos described the budget as one of ‘growth, stability and social cohesion,’ highlighting increased social spending (6.7%) and investments in defence, housing, and disability support exceeding pound 100 million through 2028. He also pointed out the continued investment in infrastructure and green and digital projects.

FOR THE PERIOD FROM 1200 13/10/2025 UNTIL 1200 14/10/2025

Atmospheric pressure at the time of issue: 1016hPa (hectopascal)

Weak low pressure is affecting the area. The weather will be mainly fine but locally increased cloud coverage will be present at times.

Visibility: Good

Sea surface temperature: 26°C

Warnings: NIL

The Cyprus national football team continued its positive course on Sunday with a 4-0 victory over San Marino at the Serravalle Stadium, as part of Matchday 7 in Group H of the 2026 FIFA World Cup Qualifiers.

Cyprus opened the scoring in the 10th minute when Loizou converted a cross from Pileas, sending the ball into the back of the net.

In the second half, Cyprus clearly dominated, with Andreou making it 2-0 in the 59th minute. A few minutes later, in the 67th, Kastanos scored the third goal from the penalty spot, while in the 79th minute, Kakoullis sealed the final 4-0 after finishing a cross from Correia.

With this result, Cyprus now has 8 points in the standings.

Scorers: – / Loizou 10′, Andreou 59′, Kastanos 67′ (pen.), Kakoullis 79′

San Marino lineup: Colombo, Riccardi, Sammaritani, Cevoli, Rossi, L. Capicchioni, Nanni, Contandini, Golinucci, Zannoni, Lazzari.

Cyprus lineup: Moll, Pileas, Charalambous, Pittas, Loizou, Andreou, Siikkis, Kastanos, Tzionis, Laifis, Artymatas.

Ship management revenue in the first half of 2025 reached pound 978 million, recording a 6.7% increase compared with the second half of 2024, according to a Ship Management Survey published on Monday by the Central Bank of Cyprus.

This amount of revenue corresponds to 5.5% of Cyprus’s semi-annual GDP as turnover. The level of revenue increased above the pound 950 million threshold, which is considerably higher than the average level of revenues observed during the period 2019-2021.

During the first semester, 31% of the companies managed to generate revenue in the range of pound 2 – pound 20 million each. The same share of companies managed to generate revenue more than pound 20 million each. According to CBC, there is a small number of large companies that dominate the industry. During 2025H1, the top 27% of the companies accounted for 85% of the industry’s revenue.

Full management services remain the main source of revenue. In particular, in 2025H1 the share of full management services increased slightly to 49.8% of the total amount of ship management revenue while crew management services increased from 43.5% in 2024H2 to 48.4% of the total revenue in 2025H1. The share of technical management services to total ship management revenue fell to 1.8% in 2025H1 from 7% in 2024H2.

On the other hand, ship management expenditure settled at pound 896 million, marking an increase of 8.3% relative to the second half of 2024. Most of the main types of expenditure associated with the industry has to do with crew expenses, which decreased slightly to 66% of the total amount in 2025H1 compared with 68% in 2024H2. The majority of payments are directed to non-EU seafarers (43%) while administration expenses accounted for 2%. The share of ship management expenses (e.g. spare parts, lubricants, dry-docking, etc.) to total expenses increased from 27% in 2024H2 to 32% in 2025H1

According to the survey, Germany remained the main trading partner with a share of 30% in the industry’s revenues. Germany’s and Greece’s contributions, the main trading partners for the industry, decreased slightly to 30% and 13%, respectively in the first semester of 2025. In contrast, Switzerland’s (12%) and Singapore’s (4%) contribution remained relatively stable during the same period.

Minister of Energy, Commerce and Industry, George Papanastasiou, is holding a series of contacts in Dubai, in the context of the international technology exhibition ‘GITEX GLOBAL 2025’, the Ministry said in an announcement.

According to the announcement, the Ministry of Energy, Commerce and Industry, in collaboration with the Cyprus Trade Centre in Dubai, is participating for the fourth consecutive year in the exhibition, with a national pavilion and 14 Cypriot technology companies.

‘GITEX GLOBAL is the largest and most influential technology event in the world, attracting more than 6,000 exhibiting companies and over 200,000 government officials, businesspeople and technology leaders from 180 countries each year,’ it adds.

It said that Papanastasiou had scheduled meetings with government officials and senior company executives on Monday, ‘with the main aim of promoting Cyprus’ rapidly growing technology and information technology sector and strengthening international collaborations.’ The Minister met with Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, and the Minister of Economy of the United Arab Emirates, Abdulla bin Touq Al Marri.

On Tuesday, according to the announcement, Papanastasiou is to participate in an evening networking event co-organised by the Ministry and the Cyprus Trade Center in Dubai, on the occasion of Cyprus’ participation in GITEX GLOBAL.

‘The event aims to highlight the investment and business opportunities offered by Cyprus and will bring together representatives of the 14 Cypriot businesses participating in the national pavilion, as well as foreign officials and businessmen,’ it added.

Earlier on Tuesday, Papanastasiou will represent the Republic of Cyprus at the ‘European Night’ event, organised by the European Innovation Council, in collaboration with GITEX EUROPE, it said.

Cyprus’ Deputy Minister of Migration and International Protection, Dr. Nicholas Ioannides, is to participate in the EU Justice and Home Affairs Council (Home Affairs) which will take place on Tuesday in Luxembourg. Returns to Syria and a common system for the return of third-country nationals staying illegally in the EU are on the agenda, according to an announcement by the Deputy Ministry.

During the meeting, it said, the Ministers ‘will exchange views on a draft law on the establishment of a common system for the return of third-country nationals staying illegally in the EU’. It is noted that the proposed legislation, which is currently being discussed among Member States at expert level, includes, among other things, common procedures for issuing return decisions, clear rules on forced returns and stronger obligations for returnees to cooperate with national authorities.

‘The discussion during the working lunch will focus on the external dimension of migration and, on returns to Syria, in particular,’ it said, adding that the Deputy Minister will present Cyprus’ position ‘in favour of the returns of Syrian nationals’.

On sidelines of the Council, Ioannides is to hold bilateral meetings with Belgium’s Minister of Asylum, Migration, Integration and Urban policy, Anneleen Van Bossuyt, with Switzerland’s Minister of Justice, Police, Federal Councillor, Beat Jans, with the Minister of Foreign Affairs, Asylum and Migration of the Netherlands, David van Weel, and with Sweden’s Minister for Migration, Johan Forssell.

In the context of preparations for Cyprus’ Presidency of the Council of the EU, the Deputy Minister is to hold several meetings on Wednesday with members of the European Parliament.

The picture of public finances is very satisfactory, Fiscal Council Chairman, Michalis Persianis told the Parliamentary Committee of Finance on Monday, at the start of the discussion on the 2026 state budget.

However, he warned of external risks and potential expenditure that may cause uncertainty and could derail public finances.

‘The Fiscal Council’s comment, within the context of validating the assumptions of the budget, was that it is moving in a very good direction. The fiscal indicators are extremely satisfactory. We congratulate the Ministry of Finance on a number of issues, the first of which is, of course, achieving the target of 60% for the level of public debt,’ Persianis told MPs.

He spoke, however, of a ‘lot of risks’ and many issues that remain uncertain, as well as many variables that could easily change. There are ‘external risks and potential expenditure that are both numerous and costly. These could alter the data over the course of the Medium-Term Fiscal Framework,’ he said, adding that inflexible expenditure continues to absorb a significant share of total spending, a fact that traps each government in a ‘procyclical policy,’ which ‘will be very dangerous if the economic climate reverses, something that will inevitably happen at some point,’ he said.

Persianis also noted that, based on the Republic’s obligations under the EU’s economic governance rules, ‘we are in expenditure excess,’ referring to ‘a very high risk in the calculations to correct this trajectory.’ He estimated, however, that as long as the debt remains below 60%, this excess will not easily lead to measures being taken against Cyprus. He also added that the plan to correct this excess is better than last year’s, though it still carries a high implementation risk.

He further stated that this year’s Medium-Term Fiscal Framework is moving along a ‘more realistic trajectory.’