Category: Cyprus News Agency

Minister of Health Neophytos Charalambides held on Friday a meeting with Cypriot MEP Loukas Fourlas, who is the rapporteur of the European Parliament’s Report on the healthcare workforce crisis.

According to a press release by the Ministry of Health, during the meeting, the Minister received the Report that was prepared jointly by the Health and Employment Committees of the European Parliament and will be brought to the EP Plenary for a vote in September.

The press release notes that the Report places particular emphasis on the need to adopt effective policies to attract and retain human resources, improve working conditions and create incentives for specialized health professionals to return to the sector.

It says that during the meeting held in the presence of Permanent Secretary of the Ministry of Health, Elisabeth Constantinou, Fourlas presented the main conclusions and recommendations of the Report.

It is added that the Report highlights the challenges facing health systems in the European Union due to the lack of health professionals.

The Minister of Health stated that the conclusions and recommendations of the Report will be duly utilized and will be taken into account in the planning and implementation of policies concerning the health sector and its human resources.

European Commission President Ursula von der Leyen praised the work and achievements of the Cyprus Presidency of the Council of the European Union during a press conference on Friday following the conclusion of the European Council meeting in Brussels.

Addressing to President of the Republic Nikos Christodoulides, von der Leyen thanked the Cypriot team for its ‘hard work’, ‘skillful steering’ and the results it achieved throughout the Presidency.

The Commission President noted that the Cyprus Presidency took place during a particularly demanding period for the European Union, while also highlighting Cyprus role as a bridge to the Middle East.

She stressed that Nicosia’s contribution helped the EU maintain close engagement with the region at a time when dialogue was especially important.

Referring to the results of the Cyprus Presidency, von der Leyen pointed to progress on key European priorities, including support for Ukraine, the EU enlargement process, competitiveness, the simplification of European legislation, and the advancement of a common European returns system.

She made particular reference to enlargement, noting that progress had been achieved that, as she said, ‘had not been seen in years.’

Von der Leyen also welcomed the agreement reached on the revision of air passenger rights rules, describing it as the first major reform of the framework in two decades.

She congratulated President Christodoulides and the Cypriot team for their work, noting that they could be proud of the results achieved during the Cyprus Presidency.

Justice and Public Order Minister Costas Fytiris met with Alan Mitchell, President of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT), noting that the Ministry takes the observations and recommendations of international bodies seriously while Mitchell expressed his satisfaction with the briefing he received on measures currently underway.

A Justice Ministry statement says Mitchell is in Cyprus as a guest at an event organised by the Commissioner for Administration and the Protection of Human Rights (Ombudsman), in cooperation with the Council of Europe, to present and discuss the main findings and recommendations of the CPT’s report on its 2025 visit to Cyprus.

In a private meeting with the Minister, issues were discussed concerning detention conditions, the operation of the Prisons, staff working conditions, and broader matters related to the protection of the rights of persons deprived of their liberty, a Ministry press release said.

The Minister also informed the CPT President about actions in progress aimed at improving detention conditions at the Central Prisons, as well as the planning underway for the new Prisons project. Mitchell expressed his satisfaction with the open and substantive exchange of views with the Minister and with the update he received on ongoing measures.

Particular reference was made to projects and interventions being implemented or planned, both to address existing problems and to create a more modern, functional and secure detention framework, for the benefit of both inmates and staff.

Fytiris emphasised that the Ministry treats the observations and recommendations of international organisations with seriousness, noting that improving detention conditions is a matter of the rule of law, human dignity and institutional responsibility.

He also stressed that this effort is not limited to isolated interventions but forms part of an overall plan to upgrade the country’s penitentiary system.

European integration and a comprehensive European security framework remain incomplete while part of Cyprus is under Turkish occupation, the European People’s Party (EPP) said in a statement after the Party’s summit in Brussels.

‘We reiterate the need to find a solution for the Cyprus issue in accordance with relevant UNSC resolutions and in line with EU law, values and principles,’ it said.

The leaders of the EPP met in Brussels on Thursday, with the main objective of preparing the European Council taking place today and tomorrow in the Belgian capital.

The meeting was hosted by EPP President Manfred Weber and was attended, among others, by Commission President, Ursula von der Leyen, European Parliament President, Roberta Metsola, Cyprus President, Nikos Christodoulides, as well as heads of state and government of other European Union countries, including Luxembourg, Sweden, Germany, Hungary, Greece, Portugal, Finland, Croatia, Austria and Poland.

In a statement after the summit, the EPP said that the European Union ‘must evolve into a stronger geopolitical actor if it is to effectively defend its interests, values, and security in an increasingly contested global environment’. This requires moving towards greater political cohesion to advance common priorities in the areas of defence and enlargement, as well as being more assertive on the international stage against unfair market practices of third countries hindering its competitiveness, it said.

Regarding Defence, and Article 42(7) of the Treaty on European Union, the political group referred to the outcome of the EPP Retreat in Zagreb in January 2026, noting that it is ‘committed to taking further steps’ on the application of Article 42(7).

It noted that Europe must further increase its responsibility for its own security and defence to become sovereign. It suggested the establishment of clear activation and consultation mechanisms among member states, the creation of a toolbox of commitments that can be provided – including cyber defence support and airspace protection -, and the introduction of a framework for exercises, strategic communication and for scenario-based forward planning.

‘Building on the progress achieved in the Council on SAFE, EDIP, military mobility and the Defence Readiness Omnibus, we call for the continued strengthening of the Union’s defence readiness’, it also said.

It also declared that they ‘strongly support’ the swift completion of the omnibus on defence, among other things.

The EPP also noted that European integration and a comprehensive European security framework ‘remain incomplete while part of Cyprus is under Turkish occupation’. ‘We reiterate the need to find a solution for the Cyprus issue in accordance with relevant UNSC resolutions and in line with EU law, values and principles’, they said among other things.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results due to Turkish intransigence. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

In 2025 the Secretary-General hosted two informal meetings on Cyprus, in March in Geneva and in July in New York, while a tripartite meeting with the Cyprus leaders was also held in late September, at the end of the UN General Assembly High Level Week. An informal meeting in broader format that was expected to take place before the end of 2025, is yet to be announced. María Angela Holguín, the UN Secretary-General’s Personal Envoy on Cyprus, is tasked to engage with the parties.

Today, the European Commission greenlighted Bulgaria’s fourth payment request under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU.

The Commission found that Bulgaria has satisfactorily completed 23 out of 26 milestones and targets set out in the Council Implementing Decision.

The reforms and investments tied to this payment request will drive positive change for citizens and businesses in areas such as anti-corruption, digitalisation of administrative justice, vocational education and training, support for small and medium-sized enterprises, sustainable transport, decarbonisation and renewable energy, agriculture, and outpatient care.

Flagship measures in this payment request include: anti-corruption measures, including the adoption of legislation establishing a politically and financially independent Anti-corruption Commission for preventing and countering corruption among persons holding public office, and the introduction of rules to regulate lobbying activities; measures to decarbonise the energy sector, such as improving the corporate governance of state-owned energy companies through the restructuring of the Bulgarian Energy Holding (BEH) to avoid the risk of cross-subsidisation of coal-related activities and align its structure with Bulgaria’s future energy market needs, as well as the establishment of a National Fund for Decarbonisation to support energy efficiency; boosting renewable energy by supporting almost 1,400 solar domestic hot water systems or photovoltaic systems to produce electricity in households; and a new public service contract for public rail transport to improve quality, accessibility and passenger uptake alongside a modernised legal framework promoting zero- and low-emission transport, including new electric mobility rules and low-emission zones.

More information in the press release.

(For more information: Maciej Berestecki – Tel: +32 229-66483; Isabel Arriaga e Cunha – Tel: +32 229-52117)

Support for EU accession remains high across enlargement partners, latest surveys show

Today, the European Commission published the results of the latest perception surveys on enlargement among citizens in the Western Balkans, Eastern Neighbourhood and Trkiye. The findings show that support for EU accession remains strong across the enlargement partners, with citizens continuing to associate closer ties with the European Union with greater security, economic opportunity and better prospects for younger generations.

Commissioner for Enlargement, Marta Kos, said: ‘As the latest polls show, citizens across our enlargement partners are clear about what closer ties with the European Union mean in practice: stronger peace and security, wider economic opportunities, and better prospects for the next generation’.

In candidate countries and potential candidates, surveys show that EU accession continues to enjoy public support, although levels of support vary among countries. In the Western Balkans, support is strongest in Albania (92%) and Kosovo (83%). More than 60% of respondents in Montenegro, North Macedonia and Bosnia and Herzegovina are also in favour of joining the EU, while support in Serbia stands at 31%. Expectations about the timing for accession have grown significantly in Montenegro, where 62% believe that the country will join the EU in the next five years, compared to 39% in 2025. In the Eastern Neighbourhood, support for EU accession stands at 71% in Georgia, 65% in Ukraine and 58% in Moldova. In Trkiye, 46% of respondents expressed support for EU membership.

The perception surveys were conducted through face-to-face interviews between February and April 2026. A sample of around 1,000 individuals per partner country and 2,400 individuals in Trkiye, was selected using a two-stage stratified sampling design method. The results will help inform the Commission’s outreach and engagement with the public in partner countries. They will also support the Commission’s communication on progress in the enlargement process, including as part of the annual enlargement reporting cycle.

More information on the results of the perception surveys can be found online.

(For more information: Markus Lammert – Tel. +32 2 296 75 33; Yuliya Matsyk – Tel. +32 2 296 27 16)

EU delivers pound 34 million in immediate support to Armenia as announced by President von der Leyen

Today, the European Commission has disbursed pound 34 million to Armenia to help mitigate the impact of Russia’s trade restrictions on the country’s private sector. Just two weeks after President von der Leyen’s call with Prime Minister Pashinyan, the EU is delivering swiftly on its commitments to support Armenia and its people.

This financial assistance is the first tranche of a broader package announced by President von der Leyen, which also includes trade facilitation and solidarity measures to strengthen Armenia’s economic resilience.

Building on the commitments made at the EU-Armenia Summit last month, the EU and Armenia will continue working together to strengthen business ties and expand market access for Armenian producers. Additional support will be provided to sectors affected by the trade restrictions, including agri-food products, flower production and other export-oriented industries, through trade initiatives, business matchmaking events and targeted market access initiatives. The EU-Armenia Task Force on Economic Resilience continues to meet regularly to steer and monitor the implementation of these measures.

Commissioner for Enlargement, Marta Kos, said: ‘The EU stands firmly with Armenia – a sovereign, democratic and independent country. Today’s support will help address immediate economic challenges while opening new opportunities for Armenian businesses to trade with regional and European markets. This is European solidarity in action’.

On 5 July, Commissioner Kos will travel to Armenia to advance the implementation of the support package and discuss further steps to strengthen EU-Armenia cooperation.

(For more information: Markus Lammert – Tel. +32 2 296 75 33; Yuliya Matsyk – Tel. +32 2 296 27 16)

Commission selects EUROPA consortium as winner of the Frontier AI Grand Challenge, a project to build European open-source frontier AI model in all 24 EU languages

The European Commission has selected EUROPA, a European consortium led by the Italian company Domyn, as the winner of its Frontier AI Grand Challenge. The project will develop an open-source artificial intelligence (AI) model covering all 24 official EU languages.

The Commission chose EUROPA to help strengthen Europe’s capacity to develop advanced AI on its own infrastructure. The project also shows that Europe has the talent, infrastructure and industrial capacity to build advanced AI systems.

EUROPA’s model will be openly available and designed to perform at the forefront of global AI capabilities. It will help ensure that more people and organisations across the Union can benefit from advances in AI, making advanced AI more accessible to businesses, researchers and public institutions across Europe’s linguistic diversity.

Launched in February 2026, the Frontier AI Grand Challenge invited Europe’s leading AI innovators to propose a model with more than 400 billion parameters, a scale associated with the world’s most advanced AI systems.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said: ‘Europe can lead in advanced AI on its own terms. EUROPA will build a frontier European AI model in all 24 EU languages, showing that we can match the best while staying true to our values. This is about strengthening Europe’s ability to shape AI’s future with openness, trust and strategic autonomy at its core.’

(For more information: Thomas Regnier – Tel. +32 2 299 10 99; Nika Blazevic – Tel. +32 2 299 27 17)

Joint statement by European Commission and High Representative ahead of World Refugee Day

On World Refugee Day, we will recognise the strength and resilience of the more than 117 million people displaced globally. Forced from their homes by conflict, persecution, violence and human rights violations, they continue to demonstrate extraordinary courage in rebuilding their lives and contributing to the communities that welcome them.

As the world’s leading humanitarian donor, the EU and its Member States support refugees, asylum seekers and host communities, while promoting international protection standards, access to essential services and durable solutions. Through its international partnerships, including with the United Nations, the EU works to address the root causes of displacement and strengthen stability in crisis-affected regions and encourages other regions to do the same. In 2025, the number of displaced people worldwide fell for the first time in a decade, pointing towards the importance of this approach.

President von der Leyen co-hosts EU-Moldova Summit in Brussels

On Monday, President of the European Commission Ursula von der Leyen and President of the European Council António Costa will host the second EU-Moldova Summit. Together with President of Moldova, Maia Sandu, they will take stock of the significant progress achieved in EU-Moldova relations and discuss the next steps in Moldova’s EU accession process following the opening of negotiations on the so-called ‘fundamentals cluster’. This cluster covers the core values and principles on which the EU is built, notably the rule of law and the functioning of democratic institutions.

Days after the opening of these historic negotiations with Moldova, as well as Ukraine, the Summit with Moldova will send another strong signal of the EU’s continued commitment to the country’s European path. Leaders will discuss progress in implementing Moldova’s Reform Agenda under the Growth Plan, which has already unlocked pound 504 million in EU funds. The Summit will also provide an opportunity to strengthen cooperation in areas of common interest, including connectivity, energy, education, people-to-people contacts between Europeans and Moldovans, and defence against hybrid threats.

President von der Leyen and President Costa, together with President Sandu, will deliver opening remarks at 11:45 CEST. Following the Summit, they will hold a joint press conference at +/-14:30 CEST, livestreamed on EBS.

(For more information: Anitta Hipper – Tel. +32 2 298 56 91; Markus Lammert – Tel. +32 2 296 75 33; Yuliya Matsyk – Tel. +32 2 296 27 16)

Commissioner Síkela visits Brazil to strengthen cooperation on critical raw materials, transport and digital

Commissioner for International Partnerships, Jozef Síkela will visit Brazil from 19 to 24 June to advance the European Union’s strategic partnership with Brazil under Global Gateway.

The Commissioner’s visit seeks to strengthen mutual cooperation on sustainable infrastructure, critical raw materials, clean energy, digital connectivity and transport. It comes in the context of the EU-Mercosur Agreement, which will create new opportunities for European companies with the support of the Global Gateway strategy.

In São Paulo, the Commissioner will visit the Metro Line 6 construction project, the largest infrastructure project currently under construction in Latin America. It significantly improves the city’s mobility, and is being built by a consortium of European companies. He will also hold discussions with European companies and financial institutions active in Brazil.

In Minas Gerais, he will visit the Viridis rare earths mining site and demonstration plant. This project is one of the four priority projects selected to accelerate EU-Brazil collaboration on secure and sustainable supply chains. In Rio de Janeiro, he will open the EU-supported Future Affairs Forum, announced by High Representative Kaja Kallas during her visit to Brazil in September 2025. The Forum serves as an EU-Brazil forum to deepen mutual partnership on digital transformation and technology. The Commissioner will also meet with Aloizio Mercadante, President of the Brazilian Development Bank.

In Brasília, the Commissioner will open the 2nd EU-Brazil Investment Forum together with Geraldo Alckmin, Vice-President of Brazil. He will also hold a number of meetings with senior representatives of the Brazilian government, including Minister of Mines and Energy Alexandre Silveira, and Minister of Presidency, Miriam Belchior.

Audiovisual material of the visit will be available on EBS.

(For more information: Markus Lammert – Tel.: +32 2 296 75 33; Luca Dilda – Tel.: +32 2 295 21 53)

EU, Canada and China host major annual meeting on climate action with G20 countries and United Nations partners

On Monday and Tuesday, 22 and 23 June, Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra, Canada’s Minister for Environment, Climate Change and Nature, Julie Dabrusin, and China’s Minister for Ecology and Environment, Huang Runqiu, co-convene the 10th Ministerial on Climate Action, in Brussels. Taking place a few days after the Bonn Climate Change Conference, this is a major annual meeting on international climate action, and an important milestone towards COP31 in November. It is attended by ministers from the G20 group of countries and other key parties in the UN climate negotiations.

Commissioner Hoekstra will deliver opening remarks together with the other two co-chairs. Following the opening speeches, thematic sessions will focus on key political issues for COP31. On Monday, ministers will discuss the multilateral process and expectations for the upcoming UN climate negotiations. They will also exchange on climate finance, how to accelerate global climate action and deliver on ambition and implementation. On Tuesday, discussions will be dedicated to enabling a just transition and strengthening international climate cooperation, followed by concluding remarks by the co-chairs.

You can follow the opening session live on EBS and find more information on the Commissioner’s agenda online.

“I am very proud of our country,’ President, Nikos Christodoulides, said on Friday, after the European Council in Brussels, the last under the Cyprus Presidency of the Council of the EU, noting that this term has been ‘an extraordinary honour.’

He noted that the Presidency was ‘a duty’ carried out with true dedication, intense work, steady progress, and tangible deliverables.

At a joint press conference with the President of the European Council, Antonio Costa, and the President of the European Commission, Ursula von der Leyen, President Christodoulides said that this was the last European Council during the Cyprus Presidency.

‘And in this regard, for Cyprus, this Summit marks the culmination of six months at the helm of the Council, a journey that we embarked on with great pride and a profound sense of responsibility. And a duty we conducted with true dedication, intense work, steady progress, and tangible deliverables’ he added, noting that it was a results-driven Presidency, from beginning to end.

‘From the outset we have approached our Presidency with the conviction that there are no limits to what we deliver for our Union’ he said, adding that Cyprus assumed the Presidency ‘with a clear vision – to give substance to European strategic autonomy, to European Independence’, as the next necessary step of European integration.

He noted that the Cyprus Presidency’s motto for a more Autonomous Union, Open to the World, ‘has proven not only timely, but increasingly necessary in today’s geopolitical environment.’

With 11 days to go, he said, ‘we have a clear picture of the results of the Cyprus Presidency, across the European agenda: from defence and security, to competitiveness, enlargement, social cohesion, and certainly, the new Multiannual Financial Framework (MFF)’.

On the MFF, he noted that Nicosia achieved its goal of presenting a mature negotiating box with figures and securing partial general approaches on the key financial instruments and on other sectoral proposals. ‘This has been a decisive step to take us to the next stage of negotiations and provides a very solid basis for reaching an agreement by the end of the year’, he added.

On Ukraine, he said that for Cyprus, as the Union’s last member state under occupation, ‘it is absolutely clear what is at stake in Ukraine’, and how indispensable it is to uphold international legality and respect of the United Nations (UN) Charter, which, he said, are non-negotiable. ‘During our Presidency, we maintained our unwavering support through agreement on a substantial financial assistance package of pound 90 billion, while also adopting the 20th package of restrictive measures against Russia’, he added.

On security and defence, he said the Cyprus Presidency delivered ‘concrete progress’, including through the implementation of SAFE with financial assistance decisions for 18 member states, the conclusion of the defence readiness omnibus, and the advancement of the Military Mobility agenda, while that two days ago an agreement was reached on the Council’s Mandate on the Military Mobility Package. ‘And we initiated discussions, during our Presidency, which are now progressing on multiple levels, on giving substance, giving flesh and bone to the mutual assistance clause of Article 42.7, for more European independence’, he added.

On migration, he said, the Cyprus Presidency delivered agreement on the Returns Regulation and oversaw the entry into application of the Pact on Migration and Asylum, ‘marking an important milestone towards a more effective, balanced and sustainable migration framework.’

He also said that enlargement was a strategic priority of the Cyprus Presidency, noting that accession negotiations with Ukraine, Moldova, Albania and Montenegro advanced actively these six months.

On the Middle East, ‘a vital region and neighbourhood of the EU’, he said that Cyprus has worked to keep engagement and cooperation with the countries of the region high on the European agenda. He referred to the informal gathering in Lefkosia, in April, and the discussion of EU leaders with regional leaders ‘on developments in our wider neighbourhood, and on how we seize this momentum for deeper cooperation’.

President Christodoulides referred to several other successes of the Cyprus EU Presidency, such as ‘important outcomes’ enhancing trade partnerships with Mercosur, Mexico Switzerland, and the US.

During the Presidency, he said, the EU-UK relations were strengthened, by advancing negotiations on UK participation in the EU electricity market, Cohesion Policy, Erasmus+, and Gibraltar, resolving the last outstanding Brexit issue. He also said that Europe’s competitiveness was promoted through the ‘One Europe, One Market’ agenda and delivered key simplification measures, including the AI regulation under the Digital Omnibus, as well as packages on Defence Readiness, SMEs, Chemicals, and Food and Feed Safety. He also noted that the ‘landmark reform’ of the Union Customs Code, was completed, a Council agreement on the European Business Wallet and CBAM was secured, and the e-Declaration negotiations advanced, while significant progress towards a more integrated Energy Union was made.

He also referred to ‘a decisive breakthrough on the long-awaited revision of the Air Passenger Rights Regulation, which was on the table for 13 years, delivering stronger rights for European citizens’, among other things.

Six months ago, he said, Cyprus took over the Presidency with one central aim, to deliver. ‘And today, I can proudly say, that results speak for themselves. From security and defence, to competitiveness, enlargement, energy, migration and social cohesion – the Cyprus Presidency has delivered for our European family and our citizens’, he added.

Serving at the helm of the Council, he said, ‘has been an extraordinary honour, and one that we made a national mission. The responsibility to be the voice of the 27 member states serves as a powerful reminder that Europe advances when member states drive forward common European interest of our 450 million citizens.’

In closing, he thanked his colleagues in the European Council, Costa, von der Leyen, and the entire Commission, the President of the European Parliament for their contribution, as well as Cyprus’ Deputy Minister for European Affairs, Marilena Raouna, ‘under whose oversight this collective national effort was carried out, and who worked in an exemplary manner to carry our Presidency forward very successfully.’

Responding to a question on his overall assessment of the results achieved by the Cyprus EU Presidency, particularly in light of the progress recorded on major dossiers such as enlargement and the MFF, and whether he believes that, given the progress made, the EU is now closer to reaching an agreement before the end of the year, President Christodoulides said: ‘I am extremely proud of our country.’

‘I am very proud of the results delivered by the Cyprus Presidency across many areas’, he said.

Referring to enlargement, he said, as regards Montenegro, the Cyprus Presidency achieved three Intergovernmental Conferences, the provisional closure of four negotiating chapters and, the establishment of the ad hoc working group on the Accession Treaty, noting that this was the first such group to be established in the EU in 16 years.

‘In essence, through our work, we provided renewed momentum to the accession path of the Western Balkans and highlighted the importance of enlargement as a geopolitical tool,’ he added.

He also referred to the opening of the first negotiation cluster with Ukraine and Moldova, ‘following two years of deadlock.’

President Christodoulides further highlighted Albania and the Intergovernmental Conference held in May, which ‘confirmed the fulfilment of the interim benchmarks of the first cluster’. ‘I am confident that the incoming Presidency will build on this new momentum that the Cyprus Presidency, always in close cooperation with the Commission, has generated on enlargement,’ he said.

On the MFF, he stressed that the EU budget must reflect ‘our current priorities’, taking into account both the challenges facing the Union and key MFF programmes that resonate with European citizens, such as the Cohesion Fund and the Common Agricultural Policy.

He explained that Nicosia had presented a revised negotiating framework, including concrete figures, and noted that today’s discussion at the European Council had been ‘highly constructive’, alongside the agreement of three partial general approaches within the Council on the main financial instruments, despite differing positions among Member States.

He added that, in his intervention at the Council, he told his colleagues that he considered it a success that none of them was 100% satisfied with the figures proposed by the Cypriot Presidency. ‘Precisely because it must be a balanced compromise,’ he said, stressing ‘the particular political importance of reaching an agreement by the end of 2026’.

The Central Bank of Cyprus proceeded on Friday in its June 2026 projections, with a downward revision of the GDP growth rate by 0.2, to 2.5%, and by 0.1 p.p. to 2.9% for the years 2026 and 2027, respectively, mainly due to the continuation of the war in the Middle East.

Furthermore, the CBC now expects that in 2026 unemployment will increase by 0.1 percentage points, to 4.6%, inflation will soar by 0.5 percentage points, to 3.2%, while core inflation (excluding volatile energy and food prices) will rise to 2.3%, as was the projection last March.

Specifically, in its projections for the main macroeconomic indicators of Cyprus for the years 2026-2028, published on Friday, the CBC notes that its baseline scenario “assumes that the conflict will last until the last quarter of 2026, followed by a gradual de-escalation,” and adds that “the balance of risks to the baseline scenario for the period 2026-2028 is assessed as being tilted to the downside for GDP and to the upside for inflation.”

CBC notes that “the medium-term effects on the Cypriot economy will depend on the duration and intensity of the conflict.”

Additionally, it states that risks arise from climate change (extreme weather events, green taxes) and from potential wage increases and profit margins beyond expectations.

Specifically, the CBC now expects the GDP growth rate for 2026 to slow to 2.5%, compared to 3.8% for 2025, while for the years 2027 and 2028, the GDP growth rate is expected to accelerate to 2.9% (up from 3.0% that was expected last March) and 3.1%, respectively.

Compared to the March 2026 projections, there is a downward revision of the GDP growth rate by 0.2 and 0.1 percentage points for the years 2026 and 2027, respectively, mainly due to the continuation of the war in the Middle East.

The relatively limited impact for 2026, compared to the March projections, as the CBC emphasizes, “is attributed to the fact that some conservative assumptions regarding the effects of the war had already been incorporated in the previous forecasting round.” At the same time, in the June 2026 projections, a longer duration of the conflict is adopted.

According to the CBC, domestic demand for the years 2026-28 is expected to be supported by the continuing positive trend of private consumption due to the increase in real disposable income of households despite increased inflationary pressures, as well as the resilience that the labor market continues to exhibit, despite the aforementioned shocks.

Furthermore, it states that despite the pressures exerted by geopolitical uncertainty on investment activity, a substantial strengthening of domestic demand is expected from the ongoing large private non-residential investments. “Although their implementation timelines may be affected by the Middle East crisis, these projects are not expected to be cancelled, given the temporary nature of geopolitical instability and their long-term completion horizon,” it notes.

Unemployment

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Moreover, according to the CBC, the labour market continues to support the Cypriot economy and to exhibit significant resilience. The CBC projects unemployment to rise slightly to 4.6% in 2026 due to the negative impact of the crisis in the Middle East, which is mitigated by tightness in the labor market.

For the period 2027-28, the CBC expects unemployment to stabilise at 4.5%, within the framework of GDP recovery.

Compared to the March 2026 projections, a slight upward revision in the unemployment rate for 2026 is expected by 0.1 percentage points, due to lower GDP estimates.

Inflation

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According to the CBC, in 2026 inflation (based on the Harmonized Index of Consumer Prices) is expected to rise significantly to 3.2% from 0.8% in 2025 mainly due to the economic impacts of the war in the Middle East. Specifically, significant upward pressures are expected on energy prices due to increases in international oil prices, due to the restriction of transit through the Strait of Hormuz, with indirect upward effects on the other subcategories of inflation.

“Additional upward pressures are expected in the prices of non-energy industrial goods, which, although still experiencing disinflationary pressures, are expected to do so to a lesser extent than in 2025,” it adds.

According to the CBC, in 2027 and 2028 inflation is expected to decline to 1.9%, mainly due to the expected downward base effect on energy prices, as well as the gradual slowdown in service prices and, to a lesser extent, food prices.

It notes that inflation in 2028 includes the impact on energy prices (fuels) from the expected introduction of the expanded EU Emissions Trading System (ETS2).

Compared to the March 2026 projections, there is an upward revision of inflation by 0.5 percentage points for 2026, due to the economic impacts of the war in the Middle East. “The downward revision for 2028 by 0.3 percentage points is attributed to expected lower energy inflation due to the projected decline in oil prices from 2027 onwards,” the Central Bank of Cyprus says.

Core inflation

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Furthermore, core inflation, according to the CBC, is expected to rise to 2.3% in 2026 compared to 1.9% in 2025. “This rise is due to higher expected inflation in services and in non-energy industrial goods prices, driven by indirect effects from higher energy inflation,” it adds.

In the years 2027-2028, core inflation is expected to decline to 2.2% and 1.9%, respectively, reflecting, as the CBC notes, the expected gradual slowdown in service inflation, which is partially offset by the return of prices of industrial products excluding energy to positive territory.

Compared to the March 2026 projections, the upward revision of core inflation by 0.2 percentage points for the year 2027 is attributed to the effects of the war in the Middle East, while no revision is recorded for the years 2026 and 2028.

CBC Macroeconomic Forecasts for the Cyprus Economy

Friday, 19 June 2026

The Central Bank of Cyprus announces the publication of the new series ‘CBC Macroeconomic Forecasts for the Cyprus Economy,’ now available in the new publications section on the Bank’s website.

Interested readers are invited to visit the dedicated section to access the latest forecasts and related material. The new series replaces the previous related press release.

The decision of the Council of Ministers to proceed with the construction of a monument dedicated to women who have suffered violence, was announced by the Commissioner for Gender Equality, Josie Christodoulou, during an event on Friday organised by the ‘Life Against War Violence’ Foundation entitled ‘Rape as a Weapon of War: Memory, Recognition and Action’, held at the Presidential Palace, in Nicosia.

According to Christodoulou, ‘the monument will be erected at a central location in Nicosia, with the support of the Mayor of Nicosia, Charalambos Prountzos, and the Nicosia Municipality, who made a substantial contribution to identifying a site where the monument will be prominent and visible.’

She added that ‘the monument is a small tribute to the women who faced the darkest face of violence and war, yet demonstrated remarkable strength and continued, with dignity, to support their families and contribute to the progress of our society.’

Frederickou: The monument was a priority from the very beginning

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The President of the ‘Life Against War Violence’ Foundation, Natassa Frederickou, said that ‘from the very first day of its establishment, the Foundation made the creation of a monument dedicated to women and girls who suffered sexual violence in Cyprus in 1974, as well as internationally, a priority.’

‘Not to reproduce pain, not to trap women in the identity of the victim, but to publicly declare that these women belong to history. That they deserve remembrance, recognition and honour,’ she stressed.

Frederickou shared a recent conversation she had with a woman who, in her words, experienced this horror.

‘I spoke to her about today’s event. She was pleased and deeply moved. I asked her whether she would like to attend. She said ‘yes’. But when she realised there would be cameras, her answer changed. ‘I can’t, my daughter. I can’t have people see me on television.’ Fifty-two years later, she is still afraid, still feels shame, still worries about what people will say. She still carries the consequences, not only of the rape itself, but also of everything that followed,’ Frederickou said.

She also described the woman’s reaction when she spoke to her about the monument, saying that ‘at first she was frightened. She thought names would be inscribed on it and feared being exposed.’

When Frederickou explained the vision behind the monument, showed her photographs of the Korean women’s memorial and clarified that it would be a monument of honour rather than stigma, the woman’s attitude changed.

‘She looked at me and said, ‘Build it, my daughter.’ Then she added: ‘Build it somewhere close to us.’ I will never forget those words. Because hidden within them is perhaps the deepest need of these women: to know that they have not been forgotten, to know that society sees them, respects them and honours them,’ Frederickou said emotionally.

Fourlas: Fifty-two years later, the silence has been broken

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In his intervention, the Member of the European Parliament Loucas Fourlas referred to the adoption of a resolution by the European Parliament concerning the women who were abused during the Turkish invasion of Cyprus in 1974.

He said the resolution would soon be submitted to the plenary session of the European Parliament for approval and expressed confidence that it would be adopted by an overwhelming majority.

‘I will confess something to you. On the day the resolution was adopted, I immediately thought of those women. Not politically. I thought of the women who had waited 52 years to hear that someone believed them. That someone recognised their truth. That Europe recognised that what they suffered was not a forgotten footnote in history. It was a war crime committed by Turkey in Cyprus’ he noted.

Eastern Mediterranean Policy Notes | Issue 124d, June 2026

Eastern Mediterranean Policy Note

Issue 124d, June 2026

EASTERN MEDITERRANEAN POLICY NOTE

entitled

THE MAY 2026 ELECTIONS AND THE CHALLENGES AHEAD

by

Christophoros Christophorou