Category: Cyprus News Agency

Together with NATO Secretary General Rutte, I welcome the agreement by Member States on the derogation for Ukraine to purchase crucial products for Patriot air defence systems.

The next disbursement of pound 3.2 billion will enable Ukraine to better protect its skies from Russia’s indiscriminate attacks. This comes on top of pound 8.4 billion already disbursed under the Ukraine Support Loan, including for air defence.

We will continue to work hand in hand to support Ukraine and to strengthen Europe’s defence posture.

Commission proposes pound 1.1 million from the European Globalisation Adjustment Fund to support dismissed paper industry workers in Finland

The European Commission has proposed mobilising pound 1.1 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 351 workers in Finland dismissed by four paper manufacturers: Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI.

The EGF helps build a more dynamic and competitive European economy by improving the skills and employability of dismissed workers. Since 2007, the EGF has been mobilised in 192 cases, allocating pound 737 million to offer support to more than 185,000 people across 20 Member States. This funding complements national active labour market measures.

The paper industry has faced significant challenges in recent years, as demand has fallen due to digitalisation. In Finland the sector has also been hit by the closure of the border with Russia and the halt in wood imports following Russia’s war of aggression against Ukraine.

Today’s proposal will support the dismissed workers through measures such as job-search assistance and career counselling, including an AI-based pilot project to identify recruitment needs and skills demands in the affected labour market and improve job matching. It will also fund training in new professional and transferable skills, recruitment incentives, mobility allowances, financial support for business start-ups, and allowances during the set-up phase.

The total estimated cost of the package is pound 1.8 million, of which 60% (pound 1.1 million) will be covered by the Commission and 40% (pound 735,000) by the South Karelia and Lohja-Karkkila Employment Regions, the local public employment services.

Finland began supporting the workers concerned in January 2026 and the EGF may reimburse these costs retroactively.

More information is available in the press release.

(For more information: Eva Hrncirova – Tel.: +32 2 298 84 33; Eirini Zarkadoula – Tel.: +32 2 295 70 65)

Commission launches new strategic approach to boost research, innovation, deployment and uptake in Europe’s agri-food sector

The European Commission has adopted a Communication on a New Strategic Approach to Research and Innovation for competitive and resilient agriculture, forestry, rural areas and food systems. This document brings together two closely interlinked frameworks, AgRI 2040 and Food 2040, to guide future research, innovation, deployment and uptake across the entire agri-food sector.

The Communication puts greater emphasis on users’ challenges, needs and on the delivery of real impact on the ground by bringing together end users, researchers and businesses to co-create, test and demonstrate solutions in real-world settings, while still ensuring food safety. This will also help startups, scaleups and small medium enterprises to move promising innovations closer to the market.

Boosting competitiveness requires the adoption of a full value chain perspective that strengthens the innovation journey of EU startups and scaleups from research to market. To support bottom-up innovation, the Commission will promote initiatives that validate traditional knowledge and practitioner-led solutions, while engaging farmers in testing innovations across different regions.

The Strategic Approach contributes to the objectives of the Vision for Agriculture and Food, the Startup and Scaleup Strategy and the Strategy for European Life Sciences. It complements the EU Bioeconomy Strategy by supporting innovation and sustainable value creation.

More information on the New Strategic Approach to Research and Innovation can be found online.

(For more information: Louise Bogey – Tel.: +32 229-69776; Bridget Moylan – Tel.: +32 229-82844)

Commission approves pound 400 million German State aid to enhance insulin supply resilience

The European Commission has approved, under EU State aid rules, a pound 400 million German measure in favour of Sanofi-Aventis Deutschland GmbH (‘Sanofi’) to strengthen the resilience of the supply of human insulin and insulin analogues (‘insulins’). Under the measure, Germany will pay Sanofi a public service compensation to provide a service of general economic interest (‘SGEI’).

As part of its public service obligation, Sanofi will build a new insulin factory at its site at Industriepark Frankfurt-Höchst by 31 December 2032, ensure an annual production of at least 1.1 tonnes of insulins at the site and stockpile 1 tonne of insulin active pharmaceutical ingredients until 31 December 2042, and prioritise the European Economic Area (‘EEA’) markets in case of insulins shortages.

Without receiving the aid in question, Sanofi would close its German site. This would decrease the security of supply of insulins in the EEA markets, as no production sites would remain in Germany and only one production site would remain in the EEA. As some products, such as human insulin, would no longer be produced in the EEA, this would make European markets dependent on imports from third countries.

The Commission found that the SGEI entrusted upon Sanofi is genuine and Germany has properly considered the public service needs. Furthermore, the compensation does not exceed the net costs of the provision of the public service obligation, and the entrustment act contains arrangements for avoiding and recovering any overcompensation. Finally, the entrustment complies with EU public procurement rules.

On this basis, the Commission approved the German measure under EU State aid rules.

Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera, said: ‘Today’s decision is an important step towards ensuring the security of supply of critical medicines in the EU. By recognising this service of general economic interest, in light of the objectives of the Critical Medicines Act, we are creating the right conditions to support reliable access to essential medicines, such as insulins, and greater resilience of our health systems, while ensuring that public support remains targeted and proportionate.’

A press release is available online.

(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Luuk de Klein – Tel.: +32 2 299 47 74)

Commission finds Belgian support for Flemish land management associations does not constitute State aid

The European Commission has concluded that the public funding awarded to three Flemish land management associations between 2003 and 2017 does not constitute State aid.

In June 2024, the Commission opened an in-depth investigation to assess whether the public funding to the three associations constituted State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. This followed a complaint by the Flemish Association for Equal Rights in relation to Nature Management (Vlaamse Vereniging Gelijkberechtiging Natuurbeheer), alleging that the Flemish Region and Flemish municipalities granted unlawful State aid to three land management associations.

Between 2003 and 2017, Natuurpunt Beheer, Durme and Limburgs Landschap received public funding for the acquisition of land suitable for nature conservation in Flanders, which was subsequently landscaped, transformed into and managed as nature reserves. All three beneficiaries are not-for-profit organisations.

Following the in-depth investigation, the Commission concluded that, as nature conservation and information, and education activities are not economic activities, public funding awarded in their support does not constitute State aid. As regards the secondary activities of the land management associations, the Commission concluded that activities such as wood cutting or hay and meat production were inseparably linked to nature conservation and therefore not economic, so not subject to State aid rules. Other activities, such as cafeteria services or book sales, were conducted on a limited scale and only on local markets. As such, they were not liable to have an effect on trade, which means they do not constitute State aid.

The non-confidential version of the decision will be made available under the case number SA.36303 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Luuk de Klein – Tel.: +32 2 299 47 74)

Commission clears acquisition of Hamburg logistics property by PLD and NBIM

The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of a logistics property in Hamburg currently belonging to Grundbesitz Spectrum GmbH and Co. KG. of Germany by Prologis, L.P. (‘PLD’) of the US and NBIM Nerva S.à r.l. (‘NBIM’) of Norway.

The transaction relates primarily to the operation and management of industrial real estate.

The Commission concluded that the notified transaction would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction. The notified transaction was examined under the simplified merger review procedure.

Turkey’s relations with Cyprus and Greece are among the issues affecting the assessment of Ankara’s regional cooperation and good-neighbourly relations with the EU, according to a study commissioned by the European Parliament’s Committee on Foreign Affairs (AFET) and published on Tuesday.

The study, which examines methods for assessing the alignment of EU candidate countries with the CFSP, states that Turkey’s bilateral relations with other enlargement countries were generally positive, but remained difficult with some neighbouring EU member states, ‘particularly Greece and Cyprus’. For this specific indicator, the authors give Turkey a score of 3 out of 5, describing the overall picture as mixed.

Cyprus is also specifically mentioned in the context of security and defence cooperation. The study notes that Turkey remains the largest non-EU troop contributor to the EUFOR Althea operation in Bosnia and Herzegovina and a significant contributor to NATO’s KFOR force in Kosovo. At the same time, it states that Ankara continues to pursue a policy of excluding Cyprus from cooperation with NATO. Despite this issue, the authors give Turkey’s overall security and defence cooperation a score of 4 out of 5.

Cyprus is also referred to in the study’s historical context, where the authors underline that foreign policy divergences emerging before a country joins the EU may continue after accession. As an example, they note that Greece and Cyprus maintained distinct positions towards Turkey even after joining the EU, highlighting the limits of pre-accession alignment as an indicator of the future CFSP cohesion.

The film “Hold Onto Me” by Cypriot director Myrsini Aristidou has been chosen as the first official selection of Cyprus for the Oscar for Best International Feature Film by the seven-member National Nomination Committee for the Oscars.

The Deputy Ministry of Culture said in a press release on Tuesday that the Committee has completed its work for the year 2026 based on the criteria and established procedures as defined by the Academy of Motion Picture Arts and Sciences.

After reviewing the submitted films, the Committee selected the film “Hold Onto Me” by Myrsini Aristidou as Cyprus’s first official selection for the Oscar for Best International Feature Film.

The 99th Academy Awards ceremony will take place in Los Angeles, USA, on March 14, 2027. This film has been officially submitted to the Academy of Motion Picture Arts and Sciences.

The film features actors Christos Passalis, Maria Petrova, Aulona Lupa, Jenny Sallo, Nikolas Metaxas, and Achilleas Grammatikopoulos.

The film has already received the Audience Award at the 2026 Sundance Film Festival, an Honorable Mention for actress Maria Petrova at the 2026 Sofia International Film Festival, Best Film, Best Director, and Audience Awards at the 2026 Cyprus Film Days Festival, Best Film Award at the Los Angeles Greek Film Festival, and a performance award for actress Maria Petrova at the 2026 International Film Festival – Media Choice Award For Filmmaker.

The film follows 11-year-old Iris, who learns that her estranged father, Aris, has returned for the funeral of his own father. Her need to meet him leads her to an old shipyard where Aris lives alone. There, an unexpected relationship begins that will transform both of them.

Energy, security and regional developments were at the centre of an informal trilateral meeting between Cyprus, Greece and Egypt in El Alamein on Tuesday, with President of the Republic Nikos Christodoulides, Egyptian President Abdel Fattah el-Sisi and Greek Prime Minister Kyriakos Mitsotakis reaffirming the strategic importance of cooperation among the three countries for stability and security in the Eastern Mediterranean.

In statements following the trilateral meeting, President Christodoulides described the trilateral as ‘informal in form but strategic in substance’, referring to the significance of the recent Final Investment Decision on the Kronos gas field, which, he said, marks Cyprus’ transition into an era of natural gas exports to Europe through Egypt’s infrastructure.

The Egyptian President placed emphasis on the Egypt-Greece electricity interconnection and on the prospect of transporting Cypriot natural gas to Egyptian infrastructure for re-export to European markets. He also highlighted the importance of defence and security cooperation in addressing regional challenges.

Meanwhile, Greek Prime Minister Kyriakos Mitsotakis reaffirmed Greece’s support for the GREGY electricity interconnection and referred to the prospects of transporting Cypriot natural gas via Egypt to Europe.

The three leaders also discussed developments in Gaza, Syria, Lebanon and Libya, reiterating their support for a two-state solution and respect for international law.

Energy security as a shared interest and a key pillar of the trilateral cooperation and the importance of strengthening economic, trade and investment cooperation among the three countries was at the centre of the Joint Declaration of the President of the Arab Republic of Egypt, Abdel Fattah el-Sisi, the President of the Republic of Cyprus, Nikos Christodoulides, and the Prime Minister of the Hellenic Republic, Kyriakos Mitsotakis, issued after their meeting in Al-Alamein, on the occasion of the Trilateral Summit.

The Joint Declaration refers, among other issues, to the Cyprus problem, the Palestinian issue, Lebanon and Libya, as well as matters concerning migration, the UNCLOS and water security.

Reaffirm their pride in the historical relations and close ties that bind their peoples, they committed to continue joint efforts to promote peace, security, stability, and prosperity in the Eastern Mediterranean and the Middle East, in a manner that serves the interests of their peoples and contributes to addressing common regional and international challenges.

Recognizing the growing importance of the Eastern Mediterranean region, at a time of profound geopolitical challenges, “we emphasize the importance of continued consultation and coordination among our three countries,” they stressed, noting that, building upon the achievements of the Trilateral Cooperation Mechanism since its inception in Cairo in November 2014, which has made it a successful model for regional cooperation, they remain committed to further developing it, based on the principles of trust, respect and cooperation.

“We reaffirm our shared commitment to supporting security and stability in the region and resolving disputes and crises through political and diplomatic means, and we reject any actions that would increase tension, undermine regional stability or threaten regional peace and security. We emphasize the importance of respecting the sovereignty, independence and territorial integrity of States, refraining from the threat or use of force, and fully adhering to the rules of international law and the principles of the Charter of the United Nations,” the Joint Declaration reads.

The three leaders reiterate the importance of full respect for international law, and for the commitment of all States to uphold its principles, in a manner that safeguards the rights of all States concerned and contributes to peace, security and stability in the Eastern Mediterranean. They also re-emphasize that any Agreements or Memoranda of Understanding on delimitation of the maritime jurisdiction should be concluded in accordance with international law, including the United Nations Convention on the Law of the Sea (UNCLOS).

Egypt, Greece and Cyprus welcome the efforts of the UN Secretary-General and his Personal Envoy on the Cyprus issue and expressed their support for the continued endeavors to reach a comprehensive settlement of the Cyprus issue within the framework of the United Nations and in accordance with the relevant Security Council resolutions. “We affirm that reaching a settlement of the Cyprus issue would contribute significantly to strengthening peace and regional stability,” they highlighted.

They also reaffirmed their unwavering support for the legitimate rights of the Palestinian people and for the necessity of achieving a just, lasting, and comprehensive peace based on the Two-State solution. “We reiterate our support for the establishment of an independent and sovereign Palestinian state within the June 4, 1967 lines, with East Jerusalem as its capital, in accordance with United Nations resolutions,” they said, emphasizing the importance of advancing the implementation of the second phase of President Donald Trump’s Comprehensive Plan to End the Gaza Conflict, as endorsed by UN Security Council Resolution 2803, which would ensure the commencement of reconstruction and early recovery in Gaza, and the preservation of the unity of the Palestinian territories.

They also expressed deep concern for the humanitarian situation in Gaza and stressed that humanitarian assistance must reach the civilian population safely, rapidly and at scale. “We also reaffirm the geographical, political, and legal contiguity between the West Bank and the Gaza Strip and reject any attempts to separate them, including through policies aimed at the forced displacement of the Palestinian population,” they added.

Moreover, they reaffirmed their firm support for the stability, sovereignty and territorial integrity of Lebanon and the importance of the full implementation of United Nations Security Council Resolution 1701. They stressed the need for the cessation of all attacks against Lebanon and the withdrawal of Israeli forces from Lebanese territory. “We call for the strengthening of Lebanese State institutions, foremost among them the Lebanese Armed Forces, to enable them to fulfil their responsibilities in extending the full authority and sovereignty of the State throughout its territory,” they said.

The three leaders also reaffirmed their support for Libya’s sovereignty, territorial integrity and national unity, and for an inclusive, Libyan-led and Libyan-owned political process, without foreign interference. They also called for the withdrawal of all foreign forces and mercenaries from Libya, and expressed their support for United Nations efforts towards holding simultaneous presidential and parliamentary elections as soon as possible, within the framework of Libyan ownership.

Cooperation in energy, economy, trade and investments

El Sisi, Mitsotakis and Christodoulides affirmed that energy security is a shared interest and a key pillar of their trilateral cooperation. “We express our aspiration to continue developing electricity interconnection projects, including the GREGY interconnection project, thereby enhancing energy security and contributing to linking the Eastern Mediterranean to European markets,” they underlined.

They also emphasized the importance of strengthening cooperation in the natural gas sector, thereby supporting regional and European energy security. In this context, they noted that they highly value the recent developments regarding connecting the Cypriot gas fields to the Egyptian gas infrastructure and facilities, and called for their completion as soon as possible.

The three leaders emphasized the importance of strengthening cooperation in the field of water security and the sustainable management of water resources, in light of the growing challenges facing the region, including water scarcity and climate change. In this context, they recognize Egypt’s heavy reliance on the Nile River and reaffirmed their support for its water security. They reiterated the importance of full compliance with international law in the Nile Basin, including with respect to the Ethiopian Dam.

“We further emphasize that transboundary water resources, including the Nile River, should serve as a means of cooperation and integration rather than a source of conflict. To this end, we reaffirm the necessity of adherence to the principle of ‘do no harm’ and the duty to cooperate, including through prior notification, consultation and consensus, as well as to refrain from unilateral measures that could adversely affect Egypt’s water uses and needs, in order to safeguard the interests of all concerned states,” they added.

The three leaders stressed that they attach particular importance to strengthening economic, trade and investment cooperation among their countries, and to translating their “excellent political relations into tangible economic opportunities for our peoples.” As they said, leveraging the geographical location and competitive advantages of the three countries will open new opportunities for the private sector and enhance integration among their economies. “We encourage intensified communication between business communities and the development of partnerships in priority areas, contributing to sustainable growth and job creation,” they highlighted.

They also emphasized that addressing irregular migration requires a holistic and balanced approach, combining security, development, economic, and social aspects, and the importance of expanding cooperation in the field of regular migration and encouraging the provision of organized employment opportunities for Egyptian workers in both Cyprus and Greece, in accordance with the relevant legislation and bilateral agreements.

Furthermore, they emphasized the importance of continuing to strengthen the Comprehensive Strategic Partnership between Egypt and the European Union, which, as they said, contributes to supporting stability, development, and prosperity in Egypt and the region. They welcome the progress made in implementing the six pillars that form the framework of this partnership, and reaffirmed their determination to continue close coordination within this framework to advance common interests and contribute to strengthening connectivity between the two shores of the Mediterranean.

Finally, they reaffirmed their commitment to further strengthening and developing the Trilateral Cooperation Mechanism and enhancing its effectiveness through regular follow-up on the implementation of agreements and intensified coordination among the governments of the three countries, their institutions, and the private sector. As they noted, this will ensure that the existing political consensus is translated into tangible projects and programs that benefit the peoples of the three countries.

Meanwhile, they also recalled the commitment made at the 10th Trilateral Summit regarding the operationalization of a Permanent Secretariat for the Trilateral Mechanism between Egypt, Cyprus and Greece, based in Nicosia.

At the conclusion of the Summit, el Sisi, Mitsotakis and Christodoulides reaffirmed their “unwavering commitment to the Egyptian-Cypriot-Greek partnership and our determination to continue working together for a more secure, stable, and prosperous region. We emphasize our aspiration to build upon the achievements of past years and strengthen this partnership in a way that fulfils the aspirations of the peoples of our three countries and supports peace, development, and cooperation in our region.”

The President of the Republic of Cyprus and the Prime Minister of the Hellenic Republic expressed their deep appreciation to the President, the Government, and the people of the Arab Republic of Egypt, for hosting the Trilateral Summit, and noted that they look forward to the upcoming 11th Trilateral Summit in Cyprus, where the three will continue their joint efforts “towards a more secure, peaceful, and prosperous future.”

The importance of strengthening the primary sector, as a matter of food security for Cyprus, was emphasised by President, Nikos Christodoulides, who assured grain producers that the Government will continue to practically support the sector. He also announced two new schemes totalling 1.5 million euro to address the increased cost of agricultural fuel and fertilisers.

Speaking at a dinner hosted by the Board of Directors of the Pancyprian Organisation of Grain Producers in the industrial area of Aradippou, in Larnaca district, on Monday evening, President Christodoulides said that the primary sector has to do with “the security of the country,” especially for an island nation like Cyprus, which is far from the centre of Europe.

He noted that the crises of recent years, particularly the consequences of the war in Ukraine, have highlighted the importance of food security and the need for a strong primary sector.

The President also referred to the negotiations in Brussels regarding the Common Agricultural Policy, within the discussions for the Multiannual Financial Framework, noting that there are states that wish to reduce funding for the CAP, a position with which, he said, Cyprus disagrees.

He emphasised that the Government’s goal is to strengthen the primary sector, upgrade the living standards of farmers, and attract the younger generation to the agricultural sector.

He pointed out that this year has also been accompanied by marketing problems due to foot-and-mouth disease, while difficulties are compounded by climate change, drought, extreme weather events, crop losses, and the high cost of production, which has been further burdened by the war in Ukraine and the crisis in the Middle East.

President Christodoulides also said that from 2019 to the present, the broader grain sector has contributed approximately 9.5 million euro, while the Government has granted support totalling approximately 35 million euro.

Only for the droughts of 2024 and 2025, he added, amounts exceeding 25 million euros have been paid from the Agricultural Production Protection and Insurance Fund.

At the same time, to address the dry conditions of 2025 in the grain and livestock plant sector, support totaling 4.5 million euros has been provided, he noted.

The President also stated that, as part of the emergency support for agricultural sectors for the conditions of 2025, an amount of 4.6 million euros has been approved by the European Commission, which also concerns Cyprus, for sectors where income loss beyond the established limit has been documented. Among the sectors proposed for support are grain, as well as livestock farmers due to the increase in feed costs.

Regarding the increased production costs, the President of the Republic said that “through a support scheme, a total support of one million euros will be provided to eligible farmers to cover part of the costs of purchasing fertilisers, pesticides, and other agricultural supplies, with additional support also for grain producers.”

At the same time, he announced that the Ministry of Agriculture is preparing two new Support Schemes for farmers and agricultural businesses, following the European Commission’s decision for emergency financial support due to problems related to energy and fertiliser costs and the crisis in the Middle East.

The two schemes, with a total cost of 1.5 million euro, are expected to be implemented and completed by February 2027 and will address the increased cost of “coloured” agricultural fuel and support farmers for the increased prices of fertilisers.

President Christodoulides also referred to facilitating farmers’ access to financing so that they can proceed with necessary investments.

As he said, after discussions with banks through the Association of Banks of Cyprus, the framework for operation and cooperation has been completed and approved by the Council of Ministers, while two applications for participation from banking institutions have already been submitted. In the coming period, the relevant agreements are expected to be finalised and signed so that the new financial products will be available specifically to farmers.

Regarding the Common Agricultural Policy, the President pointed out that the CAP Strategic Plan 2023-2027 has a total funding of 454 million euros, while the grain cultivation sector receives the largest percentage of direct payments, which for 2025 amounted to approximately 24.5 million euros.

At the same time, he noted, “from September, the Ministry of Agriculture will start a broad consultation for the preparation of the new Common Agricultural Policy Plan for the period after 2027, aiming at effectively supporting producers’ income and strengthening the resilience of the primary sector.”

As European cities continue to face the growing impacts of climate change, the need for collaborative, evidence-based urban solutions has never been greater.

On 2 October 2026, the Urban Health Conference organised by the U-CARE research initiative and hosted by Technische Universität Berlin will bring together architects, urban designers, public health experts, environmental health professionals, researchers, policymakers, local authorities, educators, students, and engaged citizens in Berlin to explore the future of healthier, more inclusive, and climate-resilient cities.

The conference will provide a platform for exchanging research, sharing best practices, strengthening collaboration across sectors, and bridging the gap between policy and practice.

We will welcome Jacob van Rijs (MVRDV) and Marcus Grant (Cities and Health) as keynote speakers.

Date: 2 October 2026

Time: 14:00-19:00 CET

Location: BHROX Bauhaus Reuse, Berlin and Online

Language: English

Whether you’re a professional, researcher, student, or simply passionate about healthier cities, this is your opportunity to learn, connect, and contribute.

The conference is free but registration is required: secure your place through the registration link and join the conversation that will help shape the cities of tomorrow: https://ucareproject.eu/final-conference/

The U-CARE project is funded by the Erasmus+ Programme of the European Union under grant agreement number 2023-1-DE01-KA220-HED-000161246

Following recent media reports and public statements by government officials regarding the implementation of the OECD/G20 Pillar Two international tax framework, the American Chamber of Commerce in Cyprus (AmCham Cyprus) wishes to clarify its position and contribution to the ongoing public discussion.

AmCham Cyprus fully supports Cyprus’ commitment to international tax cooperation, transparency, and compliance with its obligations under the OECD and European Union frameworks. The Chamber’s recommendations should not be interpreted as opposition to Pillar Two implementation, but rather as a call for evidence-based policymaking that balances international compliance with the need to preserve Cyprus’ competitiveness and attractiveness as an international business destination with emphasis of course on American businesses and investment in Cyprus.

AmCham Cyprus has become increasingly aware of concerns being expressed by international investors, multinational enterprises, business leaders and professional service providers regarding the potential implications of evolving Pillar Two developments for future investment decisions.

In particular, concerns have been raised as to whether certain U.S.-headquartered multinational groups may reconsider future expansion plans, choose alternative jurisdictions for new investments, or ultimately decide not to establish operations in Cyprus if the country’s competitive position is perceived to weaken relative to other international business centres.

While the extent of any such impact remains uncertain and requires objective assessment, AmCham Cyprus believes that these concerns cannot be dismissed and should be carefully evaluated. Policymakers must fully understand both the potential benefits and the possible unintended consequences of future policy decisions, particularly where those decisions may affect investment flows, business expansion, employment creation and long-term economic growth.

The Chamber therefore believes that its responsibility, as one of Cyprus’ leading business organizations representing U.S. and international investment interests, is to contribute constructively to the public policy debate by presenting facts, international experience and private-sector perspectives. The objective is simple: to help ensure that Cyprus remains both fully compliant with international obligations and highly competitive as a destination for global investment.

U.S. Investment Is a Strategic Asset for Cyprus

The Chamber emphasizes that the United States has become one of Cyprus’ most important strategic economic partners and a significant source of foreign direct investment, innovation, entrepreneurship and international business activity. According to the latest available figures, U.S. foreign direct investment stock in Cyprus reached approximately US$14.9 billion, while U.S.-owned enterprises support thousands of jobs and substantial economic activity across sectors including technology, professional services, finance, energy, shipping, research and development, and digital industries.

These US investments contribute directly to economic growth, employment, government revenues, exports and the transfer of knowledge and expertise.

Beyond their considerable contribution to tax revenues, these measures play an important role in Cyprus’s broader strategy to strengthen its position as a regional center for international business and innovation.

AmCham Cyprus notes that there are indications from certain segments of the international investment community that prospective investments and expansion plans may be undergoing reassessment in light of evolving international tax developments and increasing competition among jurisdictions.

While these considerations may not materially affect long-established multinational enterprises with significant operations in Cyprus, they could influence future investment decisions and the pipeline of international business activity that Cyprus seeks to attract and retain. For this reason, maintaining competitiveness should remain an important element of policy discussions.

For AmCham Cyprus, all U.S.-sourced investment in Cyprus by current and prospective members is of strategic importance, without exception. We do not differentiate between investment directed towards the domestic market and investment that supports the international growth and expansion of U.S. multinational enterprises through their presence in Cyprus. Both forms of investment contribute meaningfully to the Cypriot economy and are attracted by Cyprus’s strong business environment, ease of doing business, and internationally recognised credentials.

Furthermore, it is our understanding that a substantial proportion of the significant annual tax revenues generated by U.S. companies operating in Cyprus, reported to be approximately pound 140 million, is derived from businesses that have established a presence in Cyprus to support and expand their international operations. This contribution reflects the confidence that international enterprises place in Cyprus as a competitive and trusted business jurisdiction.

More broadly, it underscores Cyprus’s long-standing success as an international business centre, a position the country has cultivated, strengthened, and promoted over many decades through a stable, business-friendly, and internationally oriented environment.

Competitiveness Must Remain at the Centre of Economic Policy

AmCham Cyprus believes that the central issue is not whether Cyprus should comply with international standards. That question has already been answered through the country’s clear commitment to OECD and EU obligations. The real policy challenge is how Cyprus can continue to uphold those obligations while maintaining an attractive, predictable and competitive environment for international business.

In today’s highly competitive global economy, multinational enterprises evaluate jurisdictions based on a broad range of factors, including regulatory certainty, legal stability, talent availability, infrastructure, operating costs, government efficiency and tax policy. Policymakers must therefore consider the cumulative impact of policy changes on the overall investment proposition offered by Cyprus.

The Chamber believes that decisions taken today will shape Cyprus’ ability to attract new capital, secure high-value jobs, support innovation and strengthen long-term economic prosperity.

Call for a Comprehensive Economic Assessment

Given the significance of the issue, AmCham Cyprus believes future policy decisions should be supported by robust economic analysis and objective evidence.

The Chamber therefore calls for a comprehensive and independent assessment examining:

The number of multinational groups potentially affected by future developments;

The contribution of those businesses to employment and economic activity;

Their direct and indirect contribution to government revenues;

The potential impact on future investment decisions;

The comparative treatment available in competing jurisdictions; and

The broader implications for Cyprus’ long-term competitiveness.

Such analysis would provide policymakers with a stronger evidence base and facilitate informed decision-making that appropriately balances international compliance obligations with economic competitiveness objectives.

AmCham Cyprus Recommendations

To ensure that Cyprus remains both internationally compliant and internationally competitive, AmCham Cyprus recommends the following:

Conduct an Independent Economic Impact Assessment

Undertake a comprehensive study evaluating the implications of Pillar Two implementation choices on investment, employment, economic activity, government revenues and long-term competitiveness.

Establish a Structured Stakeholder Consultation Process

Create a formal consultative framework involving multinational enterprises, investors, business associations, tax professionals and other stakeholders to ensure that policy decisions reflect practical market realities and economic considerations.

Maximize Flexibility Within International Frameworks

Continue engaging constructively with OECD and European institutions while exploring all available options that support both compliance and competitiveness.

Protect Cyprus’ Position as a Regional Business Hub

Ensure that future policy choices support Cyprus’ strategic objective of attracting regional headquarters, innovation activities, technology companies, research operations and international investment.

Develop a Broader U.S.-Cyprus Investment Competitiveness Strategy

Position the Pillar Two discussion within the wider context of Cyprus-U.S. economic relations by advancing reforms that strengthen the country’s attractiveness to international investors, including talent initiatives, regulatory improvements and enhanced investor services.

Constructive Engagement in the National Interest

AmCham Cyprus welcomes continued dialogue among government, policymakers, businesses and stakeholders regarding international tax developments and their implications for the Cypriot economy.

The Chamber’s position is guided by a single principle: major policy decisions should be informed by evidence, economic analysis and a clear understanding of their long-term implications. This is not merely a technical tax issue. It is a strategic economic issue with implications for investment, competitiveness, employment, innovation and Cyprus’ future growth trajectory.

AmCham Cyprus remains committed to working constructively with the Government, Parliament and all relevant stakeholders to identify solutions that safeguard Cyprus’ international credibility while preserving its ability to attract investment, create jobs and remain a dynamic and competitive economy within Europe and beyond.

President of the Republic, Nikos Christodoulides and his Egyptian counterpart, Abdel Fattah al-Sisi, held a meeting Tuesday morning in El Alamein during which they discussed bilateral relations.

An announcement issued here today says that President Christodoulides pays Egypt a one-day visit at the invitation of President Sisi. He arrived in Egypt in the morning accompanied by the Minister of Foreign Affairs and the Government Spokesperson.

During the meeting with President Sisi, they discussed, inter alia, bilateral relations in areas such as Energy and Defence, regional developments, as well as EU-Egypt relations and the role played by the Republic of Cyprus in further strengthening these relations.

Subsequently, the two Presidents visited the venue of the international airshow organised by Egypt and toured the pavilions of various countries, after which they watched an aerial display.

At 1 p.m., a Trilateral Summit of Cyprus – Greece – Egypt will take place, with the participation of the two Presidents and the Prime Minister of Greece, Kyriakos Mitsotakis, at the Presidential Palace in El Alamein. After the Trilateral Summit, the three leaders will make statements to the media, followed by an official lunch hosted by the President of Egypt.

The share of hybrid passenger saloon cars surged to 52.4% in the first eight months of 2026, up from 43.6% in the corresponding period of 2025, according to data released by the Statistical Service on Tuesday.

By contrast, the share of petrol powered saloon cars among all vehicles in this category fell to 35.3% in the January-August 2026 period, from 43.2% in the corresponding period of 2025. The share of diesel-powered cars also declined, from 8.5% in 2025 to 8% in 2026, as did that of electric vehicles, from 4.8% to 4.3%.

According to CYSTAT, the total registrations of motor vehicles increased by 11.2% to 38,564 in January-August 2026, from 34,668 in January-August 2025.

Passenger saloon cars increased to 29,902 from 26,961 in January-August 2025, recording a rise of 10.9%. Of the total passenger saloon cars, 9,326 or 31.2% were new and 20,576 or 68.8% were used cars. Rental cars in particular recorded a fall of 14.2% (from 4,044 to 3,468).

The share of petrol powered passengers’ cars to the total of this category of vehicles decreased in January-August 2026 to 35.3% (from 43.2% in the corresponding period of the preceding year), of diesel powered cars to 8% in 2026 from 8.5% in 2025 and of electric cars to 4.3% (from 4.8%). On the other hand, the share of hybrid cars rose from 43.6% to 52.4%.

Motor coaches and buses registered in January-August 2026 increased to 142, from 101 in the same period of 2025. Goods conveyance vehicles increased by 13.4% to 4,463 in January-August 2026, compared to 3,935 in January-August 2025.

In particular, light goods vehicles increased by 12.2% to 3,535, road tractors (units of trailers) by 21% to 167, heavy goods vehicles by 17% to 536 and rental vehicles by 20.3% to 225.

Mopeds 50cc registered in January-August 2026 decreased to 103 compared to 155 in the corresponding period of the previous year. Motorbikes (>50cc) increased by 10.8% to 3,428 in January-August 2026, compared to 3,094 in the same period of 2025.

In August 2026, the total registrations of motor vehicles numbered 3,777, recording an increase of 8.9% compared to 3,468 in August 2025. Passenger saloon cars registered a rise of 9.2% to 3,061, from 2,803 in August 2025.