Category: Cyprus News Agency

Leaders of the World Federation of Overseas Cypriots (POMAK), the International Coordinating Committee – Justice for Cyprus (PSEKA), and the Youth of the World Federation of Overseas Cypriots (NEPOMAK) sent a clear message from Nicosia on Friday that they will continue working in their countries of residence to support efforts for the resumption of negotiations for the settlement of the Cyprus issue, while also preserving Cyprus’ traditions, customs and cultural heritage.

Meanwhile a resolution adopted by the Conference urged Turkey to cooperate fully in establishing the fate of the remaining missing persons and to provide complete information to the affected families. It further condemned the continuing Turkish military violations along the ceasefire line. It further stressed that a viable, functional and democratic settlement of the Cyprus issue, within the parameters of the United Nations Security Council resolutions, would be in the interests of all Cypriots.

Speaking at a press conference on the final day of the 23rd World Conference of Cypriots Abroad, held from 28 to 31 July, leaders of POMAK, PSEKA and NEPOMAK expressed their gratitude to the Government, the Ministry of Foreign Affairs and the Service for Overseas Cypriots for the excellent organisation of the event.

POMAK President Christos Karaolis said that this year’s conference had been ‘highly productive’ and had taken place during a period of ‘significant developments’ concerning Cyprus. He referred to the visit to Cyprus earlier this week by the UN Secretary-General, António Guterres, the conclusion of the Cyprus Presidency of the Council of the European Union, and the announcements regarding the Cronos natural gas field and wider energy developments. He noted that delegates had the opportunity to receive briefings and discuss these developments with the President of the Republic, the Ministers of Foreign Affairs, Defence and Energy, as well as the Deputy Minister for European Affairs.

He stressed that the overseas Cypriot movement fully supports President Nikos Christodoulides’ efforts to resume negotiations from the point at which they were suspended at Crans-Montana, with the aim of achieving a solution based on the agreed framework and the EU acquis.

Karaolis also said that participants had discussed matters concerning the Cypriot diaspora and ways of strengthening its links with Cyprus.

PSEKA Deputy President Savvas Tsivikos said that delegates were in Cyprus ‘at a particularly important time’, noting the visit of the United Nations Secretary-General and expressing optimism that ‘a door appears to be opening for the long-awaited resolution of the Cyprus issue, with the prospect of negotiations resuming’.

He said that, following meetings and briefings with numerous members of the government, delegates had received ‘the necessary tools and information’ to return to their countries of residence and continue their work.

‘We will continue as dedicated volunteers, committed to the struggle for Cyprus’ liberation,’ he said.

Tsivikos emphasised that all members of the organisation are volunteers and that their mission extends beyond the political issue alone. ‘We also have a responsibility to preserve our customs, traditions and Hellenic identity while living far from our homeland,’ he said.

He also congratulated the Republic of Cyprus, President Christodoulides, Minister of Foreign Affairs Constantinos Kombos, and Deputy Minister for European Affairs Marilena Raouna, saying they had made Cypriots ‘extremely proud through the outstanding success of Cyprus’ Presidency of the Council of the European Union’.

He encouraged political party leaders to reconsider their position regarding the extension of the Deputy Ministry’s mandate, arguing that ‘Cyprus must continue to have a strong presence in Europe, not only today but in the future’.

Tsivikos also noted that this year’s NEPOMAK conference had attracted strong participation.

Outgoing NEPOMAK President Christos Tuton said that, as the youth of the Cypriot diaspora, they want to send the message ‘that we care deeply about Cyprus, the Cyprus issue, and our customs and traditions, and that Cyprus will always remain close to us.’

The newly elected President of NEPOMAK, Elle Zacharia, said it was a great honour to have been elected to lead the organisation. She described NEPOMAK as a vibrant part of the global Cypriot diaspora movement and said she looked forward to continuing close cooperation with the Government of Cyprus, POMAK, PSEKA and Cypriot federations around the world.

Resolution of the Cyprus issue

The World Conference of Cypriots Abroad, in a resolution adopted during its proceedings, expressed its ‘unreserved support for the determined and sincere efforts of the President of the Republic of Cyprus, which have received international recognition, to overcome Turkish intransigence and achieve a viable and lasting settlement of the Cyprus issue without occupation troops or guarantees’.

The resolution stated that such a settlement should constitute an evolution of the Republic of Cyprus, safeguarding a single sovereignty, a single citizenship and a single international legal personality, while fully guaranteeing the four fundamental freedoms of the European Union.

The Conference also strongly condemned the continuing occupation, now in its 52nd year, of almost 37 per cent of the territory of the Republic of Cyprus, and called on Turkey to withdraw all occupying forces immediately.

It further called on Turkey to implement the United Nations resolutions on Cyprus, to comply fully with the binding judgments of the European Court of Human Rights, and to respect the property rights of displaced persons as well as the human rights of all Cypriots.

The resolution also urged Turkey to cooperate fully in establishing the fate of the remaining missing persons and to provide complete information to the affected families. It further condemned the continuing Turkish military violations along the ceasefire line.

It stressed that a viable, functional and democratic settlement of the Cyprus issue, within the parameters of the United Nations Security Council resolutions, would be in the interests of all Cypriots. Such a settlement, it said, would contribute to peace and long-term stability in the Eastern Mediterranean and would be consistent with the geostrategic interests of the European Union and the strategic partners of the Republic of Cyprus.

The Conference also welcomed the recent visit to Cyprus by United Nations Secretary-General António Guterres and the European Union’s appointment of a senior European Commission official as its representative in the Cyprus settlement process, stating that this development clearly underlines that the Cyprus issue is fundamentally a European issue.

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.

UN Secretary-General Antonio Guterres, whose term nears its end, announced he would convene another meeting in broader format, after adequate preparation, but gave no timeline. He secured to that end the consensus of both sides and of the guarantor powers. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties. Executive Vice-President Raffaele Fitto acts as the European Commission’s Special Representative for Cyprus, succeeding EU special envoy Johannes Hahn.

The Industrial Output Price Index for June 2026 reached 125.8 points (base 2021=100), marking a 0.3 per cent increase compared with May 2026, the Statistical Service reported in a statement today.

It is added that compared with the corresponding month of the previous year, there was a 2.3% increase, whilst for the period January-June 2026, the index rose by 0.8% compared with the corresponding period in 2025.

In particular, according to the Service, in June 2026 compared with May 2026, the index rose by 0.3% in the mining and quarrying sector, by 0.3% in manufacturing and by 0.3% in electricity supply, while decreasing by 0.2% in water supply and materials recovery.

As regards changes compared with the same month of the previous year, increases have been observed across all sectors, 5.8% in water supply and material recovery, electricity supply 3.6%, manufacturing 1.8%, and mining and quarrying 1.6%.

It is noted that, by manufacturing sector, increases in June 2026, compared with the corresponding month of the previous year, were recorded in the manufacture of electronic and optical products and electrical equipment (10.8%), in the manufacture of furniture, other manufacturing activities, and the repair and installation of machinery and equipment (5.6%), in the production of basic metals and the manufacture of metal products (5.2%), the wood industry and the manufacture of wood and cork products, excluding furniture (4.1%); and the manufacture of machinery and equipment, motor vehicles and other transport equipment (2.6%).

Conversely, there was a decline in the food, beverages and tobacco products sector (-0.2%), whilst there was no change in the production of textiles, clothing and leather goods, the statement concludes.

Cyprus recorded a general government fiscal surplus of pound 420.3 million, equivalent to 1.1% of GDP, during the first half of 2026, according to preliminary data released by the Statistical Service of Cyprus on Friday. The surplus was marginally higher than the pound 416.8 million, or 1.1% of GDP, recorded in the corresponding period of 2025.

Total government revenue rose by 4.1% year-on-year to pound 7.40 billion from pound 7.11 billion in the first six months of 2025, while total expenditure increased by 4.3% to pound 6.98 billion from pound 6.69 billion.

Revenue growth was driven mainly by higher tax receipts and social contributions. Taxes on production and imports increased by pound 207.9 million, or 9.3%, to pound 2.45 billion, with net VAT revenue posting the strongest increase, rising by pound 263.8 million, or 18%, to pound 1.73 billion.

Revenue from taxes on income and wealth increased by pound 101 million, or 6.3%, to pound 1.69 billion, while social contributions rose by pound 181.3 million, or 7.7%, to pound 2.54 billion.

On the other hand, capital transfers fell sharply to pound 23 million from pound 107.6 million a year earlier. Revenue from sales of goods and services, interest and dividends received, and current transfers also declined.

On the expenditure side, social benefits increased by pound 151.7 million, or 5.5%, to pound 2.89 billion, while compensation of employees rose by pound 64.9 million, or 3.4%, to pound 1.98 billion. Intermediate consumption recorded the strongest percentage increase among major expenditure categories, rising by 13.4% to pound 745.4 million.

Interest payments increased by 4.9% to pound 263.4 million, while current transfers rose by 9.1% to pound 478.4 million.

Capital expenditure declined by 9% to pound 580.8 million, mainly reflecting a 31% drop in other capital transfers. Gross fixed capital formation, however, increased by 2.1% to pound 434 million.

By subsector, the central government recorded a deficit of pound 218.6 million compared with a deficit of pound 185 million in the first half of 2025. Local government posted a deficit of pound 14.8 million, compared with pound 16.6 million a year earlier. Social security funds recorded a surplus of pound 653.7 million, up from pound 618.4 million, supporting the overall fiscal balance.

The Police’s contribution and role to the successful completion of the Cyprus EU Presidency was underlined by Chief of the Police Themistos Arnaoutis during an event held in Nicosia on Friday.

A review was made of the multidimensional work carried out by the Police during the six-month period of the Cyprus Presidency, both in the field of security of official meetings and events, and at the institutional level, through the active participation of its members as Chairmen and representatives in Working Groups and committees.

Police Chief expressed his warm gratitude to all members of the Police who worked with professionalism, dedication and a high sense of responsibility.

He made special reference to the members who worthily represented the Republic of Cyprus in the Working Groups , the staff who worked to prepare the meetings, the members who staffed the Operational Centers, as well as those who participated in the planning and implementation of security measures.

At the same time, he acknowledged the significant contribution of the members who ensured the smooth continuation of daily police work in all Police Directorates and Services.

The Chief also thanked the members of the Secretariat of the Cyprus Presidency for the excellent cooperation, underlining that mutual trust and professionalism contributed decisively to the successful completion of a particularly demanding task.

The Director of the Directorate for European Union and International Police Cooperation, Senior Police Officer, Harris Philippides, presented the results of the work carried out by the Working Groups , in which members of the Police served as President, as well as the results of the eleven meetings organized in Cyprus during the Presidency.

Important initiatives implemented both in Cyprus and abroad were also presented, highlighting the active role of the Police in shaping European policies in its areas of competence.

Particular emphasis was also placed on the planning and implementation of security measures for all official meetings of the Cyprus Presidency, including high-level meetings with the participation of Heads of State and Government, representatives of third countries and heads of European institutions.

Deputy Commander of the Mobile Immediate Action Unit (MMAD), Nikos Theodorou, underlined that the high level of planning and implementation of security measures was officially recognized by the Council of the European Union and congratulations were given to the Cyprus Police for its professionalism and effectiveness.

It was noted that the Cyprus Presidency is now a best practice in terms of planning and implementing security measures for corresponding events at European level.

Honorary distinctions were awarded to executives of the Secretariat of the Cyprus Presidency as a sign of recognition for their excellent cooperation and significant contribution to the successful completion of the Cyprus Presidency.

The Republic of Cyprus recorded a 92% decrease in irregular arrivals and a 93% drop in new asylum applications in the first half of 2026 compared with the corresponding period of 2022, while the backlog of pending asylum applications has fallen by 41.5% since the establishment of the Deputy Ministry of Migration and International Protection, Deputy Minister of Migration and International Protection, Nicholas Ioannides said on Friday, presenting the results of the government’s migration policy for the first half of 2026 and a review of the Cyprus Presidency of the Council of the European Union.

Speaking at a press conference, the Deputy Minister said the government’s policy had shifted the country “from the passive management of arrivals to the decisive and strict management of migration flows,” based on providing protection only to those who are entitled to it, returning those who have no legal right to remain, and creating organised legal migration pathways.

Referring to pending asylum applications, he said they had fallen from 24,000 in June 2024, when the Deputy Ministry was established, to 14,000 at the end of June 2026, while by the end of July they had dropped below 13,500.

He made particular reference to applications by Syrian nationals, noting that new applications had declined by 96.8% compared with the first half of 2024. At the same time, nearly 2,000 applications had been rejected between the beginning of 2025 and the end of June 2026, while around 5,200 Syrians withdrew their applications or renounced their international protection status and voluntarily returned to Syria following the change of government in the country in December 2024.

The Deputy Minister called on Syrians residing in Cyprus who no longer meet the criteria for international protection to take advantage of the revised assisted voluntary return programme, which runs until October 30, 2026, stressing that those who have no legal right to remain should leave the country, otherwise forced return procedures will be implemented.

Cyprus Presidency review

Reviewing the Cyprus Presidency’s work in the field of migration, the Deputy Minister described the conclusion of negotiations on the European Union’s new Return Regulation as its most significant and politically demanding achievement.

He said the new Regulation establishes faster and more effective return procedures, strengthens member states’ tools for dealing with persons posing a threat to public order and national security, and creates the legal basis for the establishment of return hubs in third countries, in full compliance with international and European law.

He added that during the Cyprus Presidency, the first common European list of safe countries of origin and the revised concept of a safe third country were approved, while the EU Pact on Migration and Asylum entered into force on June 12.

The Deputy Minister said that the successful conclusion of negotiations on the Return Regulation and the launch of the implementation of the Pact from Nicosia demonstrate that Cyprus, despite its size, can play a meaningful role in shaping European migration policy.

The Central Bank of Cyprus (the ‘CBC’), introduces changes to the licensing process for Electronic Money Institutions and Payment Institutions, with effect from 3 August 2026, as part of the implementation of a comprehensive licensing and supervisory strategy.

The CBC noted in a press release on Friday that a new stage is introduced prior to the submission of a licensing application, namely the ‘pre-application exploratory stage’. At this stage, entities interested in obtaining a licence must submit specific information that the CBC considers important for the preliminary assessment of the interested entity. A non-refundable fee of pound 5,000 will be payable by interested companies in the pre-application exploratory stage.

As the CBC noted the objective of the pre-application exploratory stage is twofold: firstly, to enhance transparency and improve interested entities’ understanding of the licensing process, as well as the CBC’s requirements and expectations regarding the operation of Institutions; and secondly, to facilitate the early identification of any issues that may affect the subsequent assessment of a potential licensing application, particularly with regard to the criterion of good repute.

The CBC also noted that, inter alia and independently of the above, the following changes are also introduced to the overall licensing process: the fee for the submission of a licensing application for an Institution is increased from pound 5,000 to pound 10,000, the CBC may, where deemed necessary, require interested entities during the pre-application exploratory stage or applicants during the assessment of an application, to submit an enhanced due diligence report prepared by a firm with relevant expertise, and inactive applications will be deemed withdrawn after a predefined period of non-response to comments or requests issued by the CBC.

The new process will apply as of 3 August 2026. Interested entities intending to submit an application for licensing as an Institution are encouraged to consult the relevant sections of the CBC website for further details or contact the CBC by email at ~LicensingSection@centralbank.cy.

We will work in consultation with the two sides in Cyprus and the guarantor powers to create the conditions for the success of a new informal 5+1 meeting, the UN Secretary-General, Antonio Guterres, stressed on Friday.

Speaking during a press conference in New York and reflecting on his recent visit to Cyprus, the Secretary-General underlined that his visit ‘showed that in a rapidly changing and increasingly volatile region, the search for solutions is more urgent than ever.’

‘Based on our discussions on the way forward, I decided that I would convene another 5+1 meeting, after adequate preparations on confidence building, methodology and substance, taking into account the convergences already achieved.’

He also noted that ‘we will work in consultation with the two sides and the guarantors, to create the conditions for the meeting’s success.’

Responding to a question by the Cyprus News Agency on what would constitute meaningful and adequate preparation for the proposed meeting, the Secretary-General noted that ‘I mean exactly that. We had several meetings at the 5+1 that were not able to reach conclusions because they had not been well prepared. This time, we need to prepare well the next meeting in order to make sure that it leads to the solution,’ he noted.

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.

UN Secretary-General Antonio Guterres, whose term nears its end, announced he would convene another meeting in broader format, after adequate preparation, but gave no timeline. He secured to that end the consensus of both sides and of the guarantor powers. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties. Executive Vice-President Raffaele Fitto acts as the European Commission’s Special Representative for Cyprus, succeeding EU special envoy Johannes Hahn.

Cypriot judoka Petros Christodoulides won the bronze medal in the -66kg judo category on Friday, at the 23rd Commonwealth Games held in Glasgow.

According to the Cyprus Olympic Committee, the Cypriot judoka, who ranks 26th in the world, went into the semi-finals on the back of two victories, where he lost in an all-Cypriot clash to Georgios Balarjishvili, but went on to win the bronze medal match against the Australian Middleton, who ranks 30th in the world.

Great result for Sofia Asvesta, who reached the final of the 52kg category, where she lost on points to the Canadian Beaton (1-0), winning the silver medal.

Furthermore, Filippa Fotopoulou will compete during Saturday’s long jump final, having recorded the seventh-best performance with a best jump of 6.56m.

Commission starts enforcing AI Act rules and new transparency requirements on 2 August

From 2 August 2026, the European Commission’s AI Office, together with national authorities, will begin enforcing the Artificial Intelligence (AI) Act. On the same date, new transparency rules will start to apply, requiring certain AI systems to tell users when they are interacting with AI and when content has been generated or altered by it.

Under the new rules, chatbots and other interactive AI systems will have to tell users they are dealing with AI, not a human. Deepfakes (images, videos, or audio that have been edited or generated using AI) will have to be labelled. AI-generated or altered content will also have to carry machine-readable marks so it can be detected more easily.

The measures are intended to reduce deception and manipulation and help people make informed choices. They also give businesses clearer obligations and a practical way to show compliance. The Commission published today a first list of more than 180 organisations that have signed the Code of Practice on transparency of AI-generated content that operationalises the rules on transparency of AI-generated content.

As AI grows increasingly capable and integrated into everyday life, the AI Act helps ensure that AI is developed, deployed, and used safely, giving people and businesses across the EU greater confidence in the technology.

More information is available in our press release.

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

EU adopted support measures for farmers facing fertiliser crisis

Today, the European Commission adopted measures to help farmers facing sharply rising fertiliser costs and to support Europe’s food security. In recent months, geopolitical tensions and supply disruptions have pushed prices of fertilisers up across Europe. Targeted adjustments to the Common Agricultural Policy (CAP) will enable Member States to provide farmers with faster and more flexible support to access fertilisers.

These measures include three main elements. Firstly, a new liquidity scheme under rural development for crisis support, which can be co-financed up to 65% from the European Agricultural Fund for Rural Development (EAFRD). It can include unused funds that may otherwise be lost and Member States may add national financing of up to 200%. To ensure rapid delivery and minimise administrative burdens, support can be paid as a fixed amount per hectare and implemented through the CAP Strategic Plans. Secondly, Member States will have the possibility to provide advanced direct payments to farmers before 16 October with an increased rate of advances, helping them to improve cash flow. Finally, Member States will have further flexibility in addressing the impact of the high fertiliser prices, by adjusting their allocations for direct payments for calendar year 2027.

These measures complement the exceptional financial support package of pound 540 million announced in the Fertilisers Action Plan and adopted on 27 July. The Commission will continue to deliver on the Plan to reduce farmers’ exposure to future crises and, through these actions, strengthen EU food security, strategic autonomy and competitiveness.

(For more information: Louise Bogey – Tel.: +32 2 296 97 76; Katerina Horáková – Tel.: +32 2 299 93 10)

New rights making it easier to repair goods are now applicable

The Right to Repair Directive, which entered into force in July 2024, encourages sustainable consumption by making it easier to repair products instead of replacing them. As of today, the Directive becomes applicable. The Directive will help consumers save money, reduce waste, extend the lifecycle of their products, and reduce greenhouse gas emissions.

Under the Directive, consumers can request that their broken products be repaired such as smartphones, washing machines, or refrigerators, even if the legal guarantee has expired.

Manufacturers will have to offer these repairs at a reasonable price and within a reasonable timeframe. They must also provide clear information on their websites about their repair services and indicative prices. They will not be allowed to refuse repair or use practices that prevent it or deter consumers from availing of it. They will also need to make spare parts accessible and affordable.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said: ‘Europe should not become a continent that throws technology away. The future is smart, repairable, and circular. By making repair easier, we support innovation, strengthen European industry and reduce our dependence on imported raw materials.’

Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said: ‘Choosing to repair a product rather than replace it means choosing affordability, circularity, and competitiveness. The Right to Repair Directive delivers on all three. Its full application across the EU will make a real difference for consumers, the environment, and small businesses, while helping us deliver on our ambition for a clean, competitive European economy.”

Member States have to encourage repairs, for example through vouchers or repair funds. The Commission is also currently developing a new European online repair platform, for consumers to easily find repair services near them.

More information is available online.

(For more information: Guillaume Mercier – Tel.: +32 2 298 05 64; Antoine Lomba – Tel.: +32 2 299 32 33)

Belgium, Bulgaria, Denmark, and Slovenia receive more than 1.86 billion under NextGenerationEU

The European Commission has disbursed today more than pound 1.86 billion to Belgium, Bulgaria, Denmark, and Slovenia under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU.

These payments reflect the successful fulfilment of key milestones and targets linked to reforms and investments set out in the four Member States’ national recovery and resilience plans. They underscore the performance-based nature of the RRF, under which funds are disbursed only once agreed reform and investment commitments have been satisfactorily completed.

The Commission disbursed pound 567 million to Belgium, pound 896 million to Bulgaria, pound 359 million to Denmark – marking the completion of all disbursements under its national recovery and resilience plan – and pound 41 million to Slovenia, following the latest pay requests of each country and the respective fulfilment of the necessary milestones and targets under their national recovery and resilience plans.

With a view to the closure of the Facility at the end of 2026, Member States must implement all outstanding milestones and targets by August 2026 and submit their last payment requests by the end of September 2026.

A press release with more details is available online.

(For further information: Maciej Berestecki – Tel.: +32 2 296 64 83; Anna Wartberger – Tel.: +32 2 298 20 54)

Commission sends Statement of Grounds to Temu over possible obstruction of inspection under the Foreign Subsidies Regulation

The European Commission has sent a Statement of Grounds to Temu’s owner PDD Holdings Inc. (‘PDD’) and its subsidiary WhaleCo Technology Limited (‘Whaleco’), outlining concerns that they may have obstructed an inspection at WhaleCo’s premises in Ireland.

The Statement of Grounds follows an unannounced inspection under the Foreign Subsidies Regulation (‘FSR’), carried out between 2 and 5 December 2025. The Commission conducted the inspections following indications that Temu may have received foreign subsidies that distort the internal market. The aim of the inspection was to gather evidence in support of its investigation into potentially distortive foreign subsidies granted to Temu.

In particular, the Commission preliminarily considers that Temu failed to comply with several basic requests made by the Commission in the exercise of its investigative powers under the FSR. Among other things, those requests concerned the provision of information on the organisation and management of Temu’s activities in the EU and the IT tools and systems used by the company for its activities in the EU, as well as to the provision of specific books and records on the company’s activities in the EU. Such requests are customary in a competition investigation and are typically made at the early stages of the inspection. Not providing the information prevented the Commission from reviewing sources of information that could be relevant for its investigation.

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves pound 290 million Dutch State aid to support sustainable aviation fuels

The European Commission has approved, under EU State aid rules, two Dutch schemes with a combined budget of pound 290 million to support sustainable aviation fuels (‘SAF’). The schemes will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry, as well as of the ReFuelEU Aviation Regulation to boost the supply and demand of SAF and accelerate the transition to climate-neutral aviation.

The schemes will provide support to two promising technology pathways: advanced bio-SAF not produced through the Hydroprocessed Esters and Fatty Acids process (‘non-HEFA advanced bio-SAF’), and synthetic aviation fuels (‘e-SAF’). The Netherlands believes that supporting these two types of SAF now will assist their commercial development, fostering technological diversity in the future.

Under the schemes, the aid will take the form of direct grants payable upon the completion of project milestones. The schemes will cover the period from 2027 until 2031 at the latest.

The Commission assessed the schemes under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities under certain conditions, the 2022 Guidelines on State aid for climate, environmental protection and energy, and the 2025 Clean Industrial Deal State aid Framework.

In particular, the Commission found that the schemes are necessary and appropriate to facilitate the production of SAF, have an incentive effect and limited impact on competition and trade. The aid will also bring about positive effects and proportionality will be ensured

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves pound 59 million Slovenian State aid scheme to promote battery energy storage systems

The European Commission has approved a pound 59 million Slovenian State aid scheme to promote battery energy storage systems, in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

The scheme will be financed by the Just Transition Fund and the ETS Modernisation Fund. Under the scheme, the aid will be granted before 31 December 2030 and it will take the form of direct grants for the construction of new stand-alone battery electricity storage systems. The aid amount will be set by Slovenia based on the investment costs of each project.

The Commission concluded that the Slovenian scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera, said: ‘With this pound 59 million scheme, Slovenia is accelerating the deployment of storage technologies. More storage capacity will enable better integration of the renewable energy sources in the power system and help ensure security of electricity supply for Slovenians.”

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves amendment of Spanish State aid scheme to support energy-intensive companies

The European Commission has approved, under EU State aid rules, the amendment of a Spanish support scheme for energy-intensive companies in the form of electricity levy reductions.

The scheme was originally approved by the Commission in March 2023. Under the scheme, the aid is granted in the form of reductions of certain electricity consumption levies for energy-intensive companies. The objective of the scheme is to mitigate the risk that, due to these levies, energy-intensive companies may relocate their activities to locations outside the EU with less ambitious climate policies.

Spain notified the Commission of its intention to extend the scope of the scheme to include a reduction in the contribution for energy-intensive companies that arises from the National System of Energy Efficiency Obligations, which aims to achieve Spain’s energy efficiency targets. The amendment leads to a budget increase of pound 50 million over the duration of the scheme, bringing the total budget of the scheme to pound 446 million.

The Commission assessed the amended scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support economic activities under certain conditions, and the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’), which allow Member States to grant aid in the form of reductions from electricity levies for energy-intensive users.

The Commission found that the amended scheme facilitates the development of economic activities that rely heavily on electricity and are particularly exposed to international competition. In addition, the scheme remains necessary and appropriate to contribute to achieving the Clean Industrial Deal objectives. Moreover, the scheme continues to be proportionate, as the individual aid amounts comply with the CEEAG conditions and the scheme is limited to sectors listed in the CEEAG. The Commission also concluded that the positive effects of the scheme outweigh any possible negative effects on competition and trade in the EU. On this basis, the Commission approved the amendment under EU State aid rules.

The non-confidential version of the decision will be made available under the number SA.123095 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

The legacy of Cyprus’ Presidency of the Council of the European Union and the importance of preserving the expertise, institutional structures, relationships of trust and strong political coordination developed during the six-month term are highlighted by outgoing Deputy Minister for European Affairs Marilena Raouna in a written statement issued upon the completion of her tenure on Friday.

She said the Report on Activities submitted Friday to the President of the Republic reflects the legacy of the Cypriot Presidency and aims to ensure the long-term strengthening of Cyprus’ effective participation in the European Union’s decision-making processes.

According to the statement, the report covers the period from 17 January 2024 to 31 July 2026, the date on which her term in office ended, and documents the work carried out from the beginning of the preparations through to the completion of Cyprus’ Presidency, at both the organisational and administrative as well as the political level. Among other things, it outlines the institutional preparations and coordination of the Presidency, the development of its programme and strategic priorities, the political representation of the Republic of Cyprus within the EU institutions, contacts with member states, candidate countries and third countries, as well as the management of key European policy files, legislative negotiations and the main results achieved during the Presidency.

Raouna described the preparation and conduct of the Cyprus Presidency as “a national mission of particular institutional and political importance” and says that, under the leadership of President Nikos Christodoulides, efforts were focused on achieving tangible results and strengthening Cyprus’ role and footprint within the European Union.

Marking the end of her term, she expressed her gratitude for the opportunity to serve as Deputy Minister for European Affairs and thanks the President, members of the Council of Ministers, the Secretariat of the Cyprus Presidency, ministries, government departments, the Permanent Representation of Cyprus to the EU and all those who contributed to the successful completion of the Presidency.