President of the Hellenic Parliament concludes his visit to Cyprus

The President of the Hellenic Parliament, Nikitas Kaklamanis, concluded on Sunday his visit to Cyprus, with a visit to the ‘Lieutenant General Sotirios Stavrianakos’ Camp of the Hellenic Force in Cyprus (ELDYK) in Malounta, according to a press release issued by the Hellenic Parliament.

During his, Kaklamanis held a series of meetings, among others with the President of the Republic and the President of the House of Representatives, while he also addressed the House of Representatives in a special session on Tuesday.

On Wednesday morning, the President of the Hellenic Parliament watched the military parade marking the 65th anniversary of the independence of the Republic of Cyprus, from where he conveyed a message of unity between Greece and Cyprus in the struggle for liberation.

Subsequently, he met with Archbishop of Cyprus Georgios.

Before departing for Athens, he visited the ‘Lieutenant General Sotirios Stavrianakos’ Camp of the Hellenic Force in Cyprus (ELDYK) in Malounta, where, in an atmosphere of deep emotion, he laid a wreath at the Fallen Heroes’ Memorial of those who died during the Turkish invasion of Cyprus in 1974, and was also given a tour of the on-site museum.

Need to invest in our defence and in strategic alliances, says House President

We must invest in our defence and strategic alliances, House President, Annita Demetriou, said on Wednesday, following the military parade for Cyprus’ Independence Day, in Nicosia. She noted that this is a matter of national survival for Greek Cypriots.

Demetriou said that Cyprus’ ties with Greece are a foundation of stability and cannot be shuddered.

She welcomed the presence of the President of the Hellenic Parliament, Nikitas Kaklamanis, at the parade, saying that it sends her own essential political message.

Demetriou also said that our independence was earned through hard work and sacrifice. She warmly congratulated the participants in the parade, saying that today’s military parade fills us with national pride.

Cyprus Department of Meteorology – Forecast for the Sea Area of Cyprus (?)

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (A)

FOR THE PERIOD FROM 0600 01/10/2025 UNTIL 0600 02/10/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1011hPa (hectopascal)

Weak low pressure is affecting the area. Today, locally increased cloud coverage will be present at times while isolated rain showers are likely, mainly over the northern and eastern coastal areas.

Visibility: Good, but moderate in showers

Sea surface temperature: 27°C

Warnings: NIL

President receives congratulatory messages on Cyprus Independence Day

President of the Republic, Nikos Christodoulides, has received congratulatory messages from foreign officials on the occasion of the anniversary of Cyprus Independence Day.

Chinese President Xi Jinping said that in recent years, under the leadership of President Christodoulides, Cyprus has steadily upgraded national development and the people’s living standards and has promoted scientific and technological innovation and green development. Positive results have been achieved in these areas, he noted.

He added that next year marks the 55th anniversary of the establishment of diplomatic relations between China and Cyprus and the 5th anniversary of the strategic cooperation between the two countries, noting that he attaches great importance to the development of bilateral relations.

The Chinese President expressed his readiness to work with the Cypriot President “to further promote our traditional friendship, maintain our mutual respect and mutual trust, and continue to continuously enrich the China-Cyprus strategic cooperation that will further benefit the peoples of the two countries.”

In his message, Egyptian President Abdel Fattah al-Sisi said that the two countries enjoy a long history of strong friendship based on mutual respect and understanding and ongoing coordination on issues of common interest.

“It is our belief that through our efforts, we will be able to expand and strengthen our bilateral cooperation in various fields for the common benefit of our two peoples,” he said.

Christodoulides also received a message from US State Secretary, Marco Rubio, with the same content as that latter’s press statement on Cyprus’ National Day.

There is a window of hope for the Cyprus issue, the President says

There is a window of hope today for the resolution of the Cyprus problem, President of the Republic Nikos Christodoulides said on Wednesday in a televised address on the occasion of the Independence Day of the Republic of Cyprus, stressing that the wall of the occupation of is not impenetrable.

“We may not be at the desired point. I certainly do not underestimate or downplay the challenges and difficulties, but developments keep hope alive and allow us to continue our persistent effort,” he noted.

‘With feelings of pride, today we honour the 65th anniversary of the declaration of independence of the Republic of Cyprus, as a result of getting rid of the colonial yoke after the unparalleled struggle of our people for freedom,’ the President said at the beginning of his address.

He noted that independence was a milestone in Cyprus’ long history, while the establishment of the Republic of Cyprus constitutes the people’s greatest achievement, which we must safeguard.

Unfortunately, he continued, today’s anniversary finds our homeland territorially and administratively amputated, due to the continuing 51-year presence of the Turkish occupying army following the illegal invasion of 1974, under the pretext of the Junta’s treacherous coup to overthrow President Makarios.

“Fifty one years later, the barbed wire of occupation keeps our country divided and prevents its lawful residents from moving freely, living peacefully, and creating under conditions of security and prosperity throughout the territory of the Republic of Cyprus, as they deserve and as they are entitled to,’ he said.

Nevertheless, he noted that the Cypriot people stood firm ‘and with the Republic of Cyprus as their shield succeeded in rebuilding the state and the economy under the difficult and tragic conditions of occupation. On the foundation of international legitimacy, the Republic of Cyprus evolved into a modern state, and in 2004, 30 years after the 1974 tragedy, joined the great European family. This important transformation, the greatest diplomatic success since independence, has changed our country’s fate for the better and laid the foundations for a sustainable future for our people,’ he stressed.

President Christodoulides underlined that from the first day his assumed his duties, he set as his highest goal the resumption of negotiations for a solution to the Cyprus problem from the point where they were interrupted in the summer of 2017 in Crans-Montana. ‘It was not easy, after so many years of deadlock and lack of movement, to once again activate the international factor, especially amid two wars which are still shocking the international community,’ he said.

He noted, however, that with method and determination ‘we succeeded in reactivating the international community on the Cyprus problem, as expressed through the initiative undertaken by the UN Secretary-General that is now under way. We achieved this through the clear linkage of EU-Turkey relations with progress on the Cyprus issue and Turkey’s Cyprus-related obligations, as explicitly recorded in the European Council Conclusions,’ he said. He added that this was also achieved through the more active involvement of the European Union in the Cyprus problem, as expressed in the joint letter of the Presidents of the European Council and the European Commission to the UN Secretary-General, as well as the appointment of the EU Special Envoy for Cyprus, Johannes Hahn.

He noted that this was also achieved with the reappointment of Maria Ángela Holguín as the UN Secretary-General’s personal envoy.

Stating that ‘we are absolutely realistic’ and fully aware of the ‘long and difficult effort’ and the many challenges ahead, the President said that through the initiatives undertaken, ‘we have succeeded in reactivating the international factor and launching processes which we hope and work for to lead to the resumption of substantive negotiations for a solution to the Cyprus problem on the basis of the agreed framework and, of course, the principles and values of the European Union.’

He recalled that the initiative currently under way would have seemed inconceivable before 2023, when Ankara and Turkish Cypriot leader, Ersin Tatar, demanded recognition of sovereign equality as a precondition even for discussions or a UN-sponsored meeting.

‘Today, however, there is a window of hope. We may not be at the desired point. I certainly do not underestimate or downplay the challenges and difficulties, but developments keep hope alive and allow us to continue our persistent effort. That is why I am convinced that despite the difficulties and obstacles, the wall of occupation is not impenetrable. We only need to remain serious, persistent, methodical, and focused,’ he stressed.

‘The future belongs to us in a homeland that is changing’

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Alongside the efforts to resolve the Cyprus problem, the President also referred to efforts to strengthen all the country’s levers of power, both internal and external.

Domestically, he said, there is an ongoing effort for ‘bold and continuous reforms, for the modernization of institutions, for the strengthening of the rule of law, the fight against corruption, the management of migration, the upgrading of our homeland’s deterrent power, investment in social welfare, and of course the consolidation of the sense of security.’

He said that the prerequisite for all this is a strong and resilient economy, built through a responsible fiscal policy that secures growth for the benefit of the people as a whole and allows the pursuit of targeted social policy.

‘I am pleased with the performance of the Cypriot economy, among the highest in Europe, and indeed in the midst of two wars. Growth rate among the highest in Europe, full employment in the labor market, a downward trajectory of public debt, and much more are the result of the responsible economic policy we follow on the basis of social liberalism. This allows us to implement targeted policies to support the vulnerable, the middle class, households, and our businesses,’ he noted.

He added that the continuous upgrades by all major credit rating agencies and praise from European and international institutions amount to a vote of confidence in the country and the Cypriot economy, ‘for which we are all entitled to be proud.’

At the international level, ‘the Republic of Cyprus walks the path of responsibility,’ the President said, noting that Cyprus is assuming an active role as a pillar of security and stability in the Eastern Mediterranean and the wider Middle East.

‘Cyprus is making use of its geographical position and turning it into a strategic advantage in a region plagued by prolonged crises. As a consistent, predictable, and responsible partner, it remains a reliable and safe harbor. Through specific initiatives, through actions and not words, our homeland is becoming a hub of stability, a transit station for the safe evacuation of civilians, a corridor for humanitarian aid, and a beacon that illuminates the path of peace and cooperation,’ he said.

He emphasized that this is recognized worldwide, and expressed pride that Cyprus walks this ‘path of responsibility.’ ‘And we are determined to expand it – always as part of the solution and never part of the problem,’ he added.

Regarding the upcoming assumption of the rotating Presidency of the Council of the European Union by Cyprus, the President stressed that ‘we are fully prepared to demonstrate in practice that we can assume responsibility for Cyprus and for the European Union,’ adding that ‘I have no doubt that we will fulfill this responsibility with full awareness of today’s needs for the well-being of millions of European citizens, and the pressing need for stronger multilateralism, greater integration, and more cooperation between Europe and the rest of the world, for a stronger, safer, and more autonomous Union.’

President Christodoulides said that today fills us with pride for what our people have achieved over the past 65 years of the Republic of Cyprus’ existence.

‘Together, we give the promise that we will continue the struggle until the long-awaited day of justice, liberation, reunification. We have the capabilities, the optimism, the faith, and the will to make this land again a common homeland for all its lawful residents. We want to, and we can, have a common future with our Turkish Cypriot compatriots in a united homeland, a member state of the European Union, where its principles and values will apply without exception to all,’ he said.

‘We also have the diligence and humanity as a people to be a prosperous and compassionate society. The future belongs to us in a homeland that is changing. Happy Independence Day, Cyprus,’ he concluded.

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.

Eurostat: Cyprus records zero inflation in September, while Eurozone marks 2.2%

Cyprus poses as an exception in Europe’s inflation trends, with its annual rate reaching 0% in September 2025, according to Eurostat’s preliminary estimates. At a time when the euro area faces a moderate yet steady inflation rate of 2.2%, Cyprus stands out as the only country with no year-on-year price change, while its monthly inflation even registered a decline of -0.4%.

This contrasts sharply with broader European trends, where sectors like services (3.2% in the eurozone) and food (3%) continue to drive price pressures. In Cyprus, however, this stability may reflect a combination of domestic factors, such as relative price stability in energy and food, and external influences, including reduced import costs.

On more detail, annual inflation in the eurozone reached 2.2% in September 2025, according to Eurostat’s flash estimate, marking a slight increase from August’s 2%. However, behind this average figure lie significant disparities, both among member states and across different categories of goods and services, revealing a complex economic landscape.

As for the drivers of inflation, services remain the primary inflationary pressure, with an annual rate of 3.2% (up from 3.1% in August), followed by food, alcohol, and tobacco (3%). In contrast, energy continues to act as a drag, with prices falling by -0.4%, though the decline is less steep than in previous months (when it reached -2% in August). Non-energy industrial goods remain subdued, with just a 0.8% increase, highlighting weak demand in certain sectors of the economy.

The differences between countries remain, as Estonia records the highest inflation rate (5.2%), followed by Croatia (4.6%) and Slovakia (4.6%), while France (1.1%) and Italy (1.8%) sit at the opposite end of the spectrum. Greece shows a notable decline, from 3.1% in August to 1.8% in September, partly due to lower energy and food prices.

Meanwhile, countries like Ireland (2.7%) and Spain (3%) exhibit stabilization, while Cyprus (0%) stands out as the only country with zero inflation, underscoring the unique dynamics of its local economy.

Cyprus’ defence capabilities will be upgraded, Minister Palmas says

Ministry of Defence will continue to make every effort to strengthen Cyprus’ defence and to upgrade its operational capabilities said Minister Vasilis Palmas, in press statements following the military parade for Cyprus’ Independence Day, in Nicosia on Wednesday.

He stressed that the government remains firmly committed to the modernization of the armed forces in order to be able to respond adequately and effectively to modern multi-level challenges and to continue being a pillar of cooperation and stability, as well as a reliable regional partner.

Palmas said that October 1st is a milestone in the modern history of our homeland and a reminder of the struggles, sacrifices and vision of our people for freedom and independence.

He went on to say that today is a day of remembrance and reflection that calls us to honor the national struggles of the past and draw strength for the future. The Minister said that today we honor all those who sacrificed their lives for freedom and all those who continue to work with dedication for our security.

Palmas referred to the decisive role played by the National Guard, describing it as the guardian of the sovereignty and territorial integrity of the Republic of Cyprus.

He congratulated all those who participated in today’s parade and thanked the Greek Deputy Minister of National Defence, Thanasis Davakis, for his presence which demonstrates, he said, the stable and unbreakable bonds of friendship and cooperation between Cyprus and Greece.

Rules for third-country participation in the Framework Programme demanded by Damianos

The critical importance of research and innovation in strengthening the EU’s strategy for startups and scaleups, was pointed out by the Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianos, at the EU Competitiveness Council for Research, on Tuesday in Brussels. “This strategy is not only about supporting new businesses, but also about retaining talent and innovative startups within Europe,” stressed Damianos, adding that “Cyprus is ready to actively contribute to its implementation, especially in view of the upcoming Cypriot Presidency of the EU Council in 2026.”

A regards the Council’s main conclusions, Damianos stressed that “we must bridge the innovation gap between member states,” highlighting that “this strategy will enhance Europe’s competitiveness and technological sovereignty, ensuring that top talent and innovative companies remain within the EU.”

The research ministers of the 27 member states also approved conclusions on the EU’s Life Sciences Strategy, that underscores their critical role in boosting competitiveness, strategic autonomy, and social well-being. “Life sciences are one of the key pillars for Europe’s economic and technological independence,” noted Damianos, adding that “Cyprus, with its investments in areas such as biotechnology and biobanks, is ready to contribute to the implementation of this strategy.”

The most political part of the second day’s discussions focused on research and innovation for dual-use and defense applications. During the debate on the “Horizon Europe” Framework Programme (2028-2034), Damianos emphasized that “the new approach to dual-use and defense will strengthen the EU’s resilience and competitiveness.” However, he stressed the need for clear rules and criteria for third-country participation to avoid risks to the EU’s energy and technological security. “We must ensure that procedures are simplified and free of additional administrative burdens, especially for Member States with limited resources,” he added, referring to the need to support “widening” Member States in accessing critical technological infrastructures.

During a working lunch, ministers discussed the EU’s future ambitions regarding research and technological infrastructures. Damianos pointed out that “as a geographically small and isolated Member State, Cyprus considers EU support for access to world-class infrastructures vital.” However, “without this support, we risk falling behind in critical areas such as artificial intelligence and semiconductors,” he added.

On the sidelines of the Council in Brussels, Damianos held bilateral meetings with his counterparts from Estonia, Minister of Education and Research, Kristina Kallas, and Portugal, Minister of Education, Science and Innovation, Fernando Alexandre, aiming to coordinate and prepare for key issues ahead of Cyprus’s EU Council Presidency in 2026. “Cyprus will place particular emphasis on strengthening research, innovation, and digital transition, with the goal of a more competitive and sustainable Europe,” he concluded.

Cyprus 2026 budget raises spending, targets further debt reduction

Cyprus’ 2026 state budget foresees higher operating, development and social expenditures, while maintaining a strong focus on reducing public debt, with 21% of expenditure earmarked for debt servicing, Finance Minister Makis Keravnos said on Monday after presenting the draft budget to the Cabinet.

Keravnos described the 2026 budget as ‘balanced, growth-oriented, with a strong emphasis on social cohesion and social policy.’

Macroeconomic outlook

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According to the baseline macroeconomic scenario, Cyprus’ medium-term economic prospects remain positive, though subject to considerable uncertainty. GDP growth is projected at 3.1% in both 2025 and 2026, followed by 3% in 2027 and 2.9% in 2028.

Inflation is estimated at just 0.2% in 2025, rising to 2.5% in 2026 before easing to 2% in 2027-2028. Unemployment is expected to remain stable at 4.6% in 2025-2027, edging down to 4.5% in 2028.

The fiscal balance is projected to remain in surplus at 3.7% of GDP in 2025, compared with 4.3% in 2024, while the primary surplus is estimated at 5% in 2025. For 2026-2028, the fiscal surplus is forecast at around 3.4% of GDP.

Public debt is set to continue its downward trend, falling below the EU’s 60% threshold in 2025 at 57.9%. It is expected to decline further to 52.9% in 2026, 48.7% in 2027, and 43.6% by the end of 2028.

Budget figures

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The 2026 budget, excluding debt servicing, is projected at pound 10.7 billion. Total revenues are estimated at pound 12.68 billion, while expenditures amount to pound 10.78 billion. Debt repayments of pound 2.27 billion and interest payments of pound 665 million bring total spending to pound 13.72 billion.

Revenue includes pound 4.05 billion from direct taxation, pound 4.55 billion from indirect taxation, pound 683 million from sales of goods and services, pound 237 million from rents, royalties and other proceeds, and pound 100.4 million from transfers. Financial revenues are projected at pound 2.88 billion.

Expenditure priorities

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Debt servicing takes up the largest share, accounting for 21% of expenditures. This includes pound 2.1 billion in foreign debt repayments, pound 71 million in domestic debt repayments, and pound 665 million in interest.

Operating expenditure rises 11.8% compared with 2025, reaching pound 3.77 billion, or 11.5% of the budget. The increase reflects higher spending on water supply (pound 26.1 million), defence and policing (pound 31.1 million), preparations for Cyprus’ EU Presidency in 2026 (pound 6 million), and staff training (pound 16.1 million).

Personnel expenditure accounts for 27.5% of the budget. The number of public sector posts will be reduced by 14 for a second consecutive year, with 458 new posts created and 472 abolished. Employment in the public service is down by 1,963 since 2012, or 5,883 if seconded staff at state hospitals are included. In contrast, employment in education has risen by 3,752 since 2012.

Transfers increase by 5.2% year-on-year, making up 30.8% of the budget. Social benefits rise by 6.7% to pound 2.3 billion. Contributions to the Social Insurance Fund and the national health system (GeSY) total pound 1.6 billion, up pound 163.4 million. Other transfers include pound 294.1 million to the EU budget, pound 231.6 million in grants to public and private sector organisations including universities, and pound 147 million to local authorities.

Capital expenditure declines by 2.6% to pound 580 million.

The Finance Ministry also outlined major infrastructure projects budgeted for 2026-2028, with total costs of pound 1.1 billion. The most expensive include the new Cyprus Museum (pound 145.7 million), the ‘Ktizo’ housing scheme (pound 130 million), the Deneia-Akaki-Astromeritis road (pound 129.7 million), and the Nicosia Courthouse complex (pound 119 million).