Cyprus House of Representatives approves 2026 state budget with 37 votes

The House of Representatives plenary approved on Wednesday the state budget for 2026, with 37 votes in favour and 19 against.

The budget was backed by DISY, DIKO, ELAM, DIPA, EDEK and independent MPs Andreas Themistocleous, Michalis Yiakoumi and Andreas Apostolou. It was rejected by AKEL and the Greens, Socialist MP Kostas Efstathiou, and independent MP Alexandra Attalides.

The 2026 budget is the last to be adopted by the current composition of Parliament, ahead of the parliamentary elections which will take place next May.

A total of 92 amendments were tabled during the parliamentary process, of which 31 were approved. Among them, the Plenary adopted by majority vote an amendment providing for the cut of any expenditure related to the privatisation of public organisations and state-owned enterprises, as well as government departments and services. Exceptions were made for spending linked to the development of the Troodos region, the Cyprus Stock Exchange and the Larnaca Marina.

The House will reconvene on Monday, 22 December, at 10:00 am to vote on bills concerning teacher evaluation and tax reform.

Finance Ministry welcomes approval of 2026 state budget

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The Ministry of Finance has expressed its satisfaction with the approval of the 2026 state budget by the House of Representatives, thanking all MPs for what it described as a constructive dialogue and a high sense of responsibility throughout the parliamentary deliberations.

According to the Ministry, the 2026 budget provides for total expenditure of pound 13.7 billion, compared with pound 12.9 billion in 2025. It is the third budget presented by the government of President Nikos Christodoulides and, as in previous years, is designed to be surplus-generating, fair and balanced, with a clear development-oriented focus.

The budget foresees an increase of 4.7% in development expenditure and includes construction projects amounting to approximately pound 408.5 million. At the same time, social benefit spending is set to rise by 6.7%, covering health benefits of pound 1.03 billion, education benefits of pound 206.3 million and allocations of pound 205.7 million for the Guaranteed Minimum Income.

The Ministry also highlighted that, for the first time, the budget incorporates provisions for a care allowance for persons with disabilities amounting to pound 26 million in 2026. This allocation is expected to increase gradually over a three-year period, reaching pound 45 million by 2028.

Budgets with record support

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In a separate briefing, the Ministry of Finance noted that, based on available parliamentary data, the budgets with the highest number of votes in favour in the history of the Republic of Cyprus (since 1960) were those of 2024, 2025 and 2026. Each secured 37 votes in favour, representing 66% of the House.

The Ministry described these results as historically high, pointing out that state budgets in Cyprus have traditionally been approved by narrow majorities, often with 28 to 30 votes.

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

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (A)

FOR THE PERIOD FROM 0600 16/12/2025 UNTIL 0600 17/12/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1017hPa (hectopascal)

Weak low pressure is affecting the area. Today, locally increased cloud coverage will be present while isolated showers are expected from the afternoon onward.

Visibility: Good, but moderate in showers

Sea surface temperature: 21°C

Warnings: NIL

AREA PERIOD WIND STATE OF SEA

West Coast

Morning Northeast to Southeast 3 to 4, later Southeast to Southwest 3 Slight to Moderate, later Slight

Afternoon Southwest to Northwest 3 to 4, later locally West to Northwest 4 Slight

Night North to Northeast 3 to 4, later locally 4 to 5 Slight, later locally Slight to Moderate

South Coast

Morning North to Northeast 4, locally 4 to 5 Slight, locally Slight to Moderate

Afternoon North to Northeast 4, at times locally 4 to 5 Slight

Night Northwest to Northeast 3 to 4, gradually locally 4 to 5 Slight, gradually locally Slight to Moderate

East Coast

Morning North to Northeast 4 to 5 Slight to Moderate, locally at first Moderate

Afternoon North to Northeast 4 to 5 Slight to Moderate, later locally Slight

Night Northwest to Northeast 3 to 4, gradually North to Northeast 5 Slight to Moderate, gradually Moderate

North Coast

Morning Northeast to Southeast 4, later Northeast to East 3 to 4 Slight to Moderate, later Slight

Afternoon Northwest to Northeast 3 to 4, locally Northeast to East Slight

Night Northeast to Southeast 3 to 4, gradually Northeast to East 4 to 5 Slight, gradually Slight to Moderate

Cyprus will focus on Green Deal and addressing triple planetary crisis, Minister says

Minister of Agriculture, Rural Development, and Environment, Maria Panayiotou, outlined on Tuesday ahead of the final EU Environment Council before Cyprus assumes the Presidency of the Council of the EU, Nicosia’s vision and priorities, emphasizing the climate crisis, biodiversity, and green transition.

She stressed that “at the heart of our agenda is, of course, the European Green Deal and tackling the triple planetary crisis.”

In her remarks before the Council meeting, the Minister congratulated the Danish Presidency for its work, highlighting the importance of continuity within the Presidency trio. “I would like to congratulate the Danish Presidency for the strong leadership it has demonstrated over the past six months. Together with Poland, our partners in the trio, they have created momentum, and Cyprus is ready to continue it,” she stated.

As the incoming Presidency, Cyprus is approaching its role with a clear strategic direction, Panayiotou noted. “Our vision is clear: a Europe that protects people’s lives today and secures the future of tomorrow,” she said.

The Minister stressed that the challenges facing the EU are not future scenarios but present realities. “We know the challenges ahead of us. Climate change, biodiversity loss, and pollution are not distant threats-they are here, threatening the health of our citizens, the security of our societies, and the strength of our economies,” she noted.

Panayiotou also said that “it is absolutely clear that Europe cannot delay, cannot hesitate, cannot afford procrastination, and cannot afford indecision.”

She explained that Cyprus’ response as Presidency will be based on realism and the effectiveness of policies. “We will respond with realism. We want policies that deliver results,” she emphasized.

The Minister clarified that the core of Cyprus’ environmental agenda during its Presidency will be the European Green Deal and addressing the “triple planetary crisis.” She expressed readiness to take concrete actions: “At the heart of our agenda is, of course, the European Green Deal and tackling the triple planetary crisis, with specific actions on water resilience, climate policy, circular economy, zero pollution, and bioeconomy,” she said.

Panayiotou highlighted the role Cyprus aspires to play during its Presidency, describing it as a bridge. “Cyprus will act as a bridge: between member states, between EU institutions, and between Europe and the world,” she said.

Moreover, the Minister stressed that the Cypriot Presidency will deliver results “for a Europe that is greener, more competitive, more resilient, a Europe that leads globally and delivers locally.”

EU support for Cyprus issue and Turkey’s Cyprus-related obligations reconfirmed, Raouna says

Deputy Minister for European Affairs, Marilena Raouna welcomed on Tuesday the confirmation of the agreed positions of the EU with regard to Turkey’s Cyprus-related obligations, the linkage of progress in EU-Turkey relations with tangible steps by Ankara towards the resumption of negotiations on the Cyprus issue, as well as the strengthening of the EU’s role through the appointment of the European Commission’s Special Envoy for Cyprus, Johannes Hahn, in close coordination with the UN and the UN Secretary-General’s Personal Envoy, María Ángela Holguín.

In a written statement on the conclusions of the General Affairs Council, Raouna notes that ‘today the EU’s support for the efforts undertaken by the Republic of Cyprus towards the resolution of the Cyprus issue was once again reaffirmed, as well as the EU’s full commitment to a comprehensive settlement of the Cyprus problem, within the agreed United Nations framework.’

As she adds, this is done ‘in accordance with all relevant UN Security Council resolutions, the principles on which the Union is founded and the European acquis.’

At the same time, she welcomes ‘the confirmation of the agreed positions of the EU with regard to Turkey’s Cyprus-related obligations, the Cyprus issue, Varosha and the Eastern Mediterranean.’

In the same context, she says, reference is also made to ‘the call on Ankara, inter alia, to fulfil all of its Cyprus-related obligations, to contribute tangibly to a comprehensive settlement of the Cyprus issue, including its external aspects, and to fully respect all relevant UN Security Council resolutions, in particular resolutions 541, 550, 789 and 1251.’

The Deputy Minister additionally welcomes ‘the confirmation of the framework decided on the basis also of the conclusions of the European Council of April 2024 and the clear linkage of progress in EU-Turkey relations with tangible steps by Turkey towards the resumption of negotiations for the resolution of the Cyprus issue on the agreed basis of settlement.’

As she underlines, ‘in this context, it is particularly important to strengthen the paragraph on the Cyprus issue, with the addition of a reference to the appointment of the European Commission’s Special Envoy for Cyprus, Mr Hahn, and the readiness of the Council to cooperate closely with him, upgrading and legitimising, on behalf of the Member States, his presence and role.’

She notes that ‘equally important is the message of EU support for the efforts undertaken by the UN Secretary-General, also through the appointment of his Personal Envoy, Ms Holguín.’

In her written statement, Raouna points out that only a few days before the Republic of Cyprus assumes the Presidency of the Council of the EU, ‘during which enlargement will constitute one of our key priorities, I welcome the sincere discussion on enlargement that took place at the General Affairs Council and the broad consensus that was achieved’ with regard to the assessment of the progress recorded by each of the enlargement partners during the current year.

She further notes that although Hungary did not give its consent to the Conclusions document due to its objections regarding Ukraine’s accession perspective, ’26 EU Member States approved the document, which will constitute the roadmap on the basis of which our Presidency will proceed over the next six months, with a view to translating the EU’s political commitment into tangible progress for all partners, always on the basis of the strict but fair conditionality that has been established, as well as in accordance with the principle of equal merit.’

According to the Deputy Minister, ‘especially under the current geopolitical conditions, EU enlargement constitutes a tool capable of contributing to the strengthening of peace, security, stability and prosperity on our continent and is, therefore, a strategic necessity.’ As she notes, ‘in this context, the EU’s commitment to the accession perspective of Ukraine and Moldova, as well as of the candidate countries from the Western Balkans, was reaffirmed today.’

At the same time, she notes that ‘we also call on all partners to respond to the commitments they have undertaken vis-à-vis the EU and to fully align with the fundamental principles and values of the EU.’ Raouna particularly welcomes ‘the fact that the accession perspective for the Western Balkans, after years of stagnation, now constitutes a realistic prospect.’

More specifically, she states that ‘Montenegro is entering a decisive phase of its accession path and the Cypriot Presidency is called upon to establish the working group that will be tasked with drafting its Accession Treaty to the EU.’ With regard to Albania, she notes that ‘provided that Albania demonstrates the necessary progress on the fundamentals during the next six months, Cyprus will contribute to the transition to the next important stage of the country’s accession process.’

As regards Serbia, she stresses that ‘the Cypriot Presidency will contribute decisively to addressing the challenges faced by Serbia, pushing for the return of its accession path onto a positive trajectory.’ Referring to Eastern Europe, she points out that ‘the progress made by Ukraine, under extremely difficult conditions, as well as by Moldova, is also noteworthy.’

As she underlines, ‘Cyprus will continue to support them tangibly during the next six months, doing everything possible within the framework of the applicable methodology, so that their accession path may advance at a rapid pace.’

With regard to the fundamental principles of the Union, she notes that ‘the EU is, first and foremost, a Union founded on the fundamental values of democracy, the rule of law, human rights and international legality.’

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 is expected later this year.

FM places great importance to agreements signed with UAE and France

Foreign Minister, Constantinos Kombos, has placed particular importance to the two recent agreements Cyprus Republic signed with UAE and France, pointing out that “the conclusion of essentially two strategic agreements by the Republic in twenty-four hours is not something that is usual”.

The Minister who made statements to the press following the Cabinet’s meeting on Tuesday, noted that these two cases as well as the agreement with India during its Premier’s visit to Cyprus, have their own special importance nevertheless they are linked to each other diplomatically.

He recalled that the government set as its main driving objective from the very beginning the expansion of Cyprus’ footprint, but also the strengthening and exploitation of the Republic’s credibility, as well as the highlighting of the possibility for the Republic of Cyprus to function as a bridge between our wider region and the European Union.

He went on to say that the two agreements of the last few hours reflect exactly this, noting that the UAE is a very important country in the region with global influence and so is France, an EU member state and a permanent member of the UN Security Council.

He also highlighted the fact that these developments are taking place a few days before the Republic of Cyprus assumes the Presidency of the Council of the European Union.

Kombos also underlined that these agreements are accompanied by action plans, which include a specific structured dialogue between the two countries and go beyond political declarations.

The Minister noted that one can identify references to the Cyprus problem, issues that are crucial for our side, but beyond that there is now an action plan, a structured dialogue with specific projects that will be examined, with the aim of their implementation within the framework of a dialogue, which has now been launched in a specific and targeted manner. He pointed out that they do not take place in a political vacuum and that preparatory work was carried out with consistency in terms of maximizing the potential for implementation.

The FM also noted that one should not take it for granted that these countries, namely the UAE and France, automatically conclude such agreements as they have their own interests. He further underlined the fact that the Republic of Cyprus falls within the broader sphere of their interests.

Kombos continued by saying that what he described is not unrelated to what is happening with Cyprus’ economy, the vote of confidence, credibility and stability, factors that lead to a favourable investment environment and interest.

He stressed that the result for Cyprus is self-evident from the point of view that the Republic of Cyprus, which is considered by some to be a defunct state, is present at the international level.

”We are still at the beginning of this effort, but we must not ignore the very basic parameter that there is institutional basis, trust and the launching of a political dialogue, with specific projects,” he said.

Cyprus takes part in international maritime expo MARINTEC China 2025

Cyprus has taken part with a national pavilion in the international maritime exhibition MARINTEC China 2025 for the first time this December.

According to the Ministry of Energy, Commerce and Industry, Cyprus’ participation in MARINTEC China, which is organised every two years and constitutes one of the most important global platforms for maritime technology and innovation, is part of the Ministry’s strategy to strengthen the international presence of Cypriot businesses, as well as to promote new collaborations in the maritime and technology sectors.

This year’s exhibition, which took place in Shanghai from December 2 to 5, brought together more than 2,200 exhibitors and over 80,000 visitors from 100 countries, it adds.

Participants in the national pavilion were the Deputy Ministry of Shipping and five Cypriot companies – Uniteam Marine Ltd, Intellar Innovative Solutions Ltd, Onetech Services Ltd, VenusHub Ltd and World Link Maritime Communications Ltd – which presented innovative solutions in areas such as ship management, technical and electromechanical services, artificial intelligence, digitalization, IPTV services and satellite communications.

On December 3rd a networking event was held at the Cyprus pavilion, in the presence of Ambassador of the Republic of Cyprus to China, Koula Sofianou, “strengthening contacts and the creation of professional partnerships with participants from international markets,” the press release says.

Furthermore, exhibitors had the opportunity to participate in bilateral meetings with international delegations, including a delegation from the city of Yidu in Hubei province, in addition to their scheduled contacts.

‘These meetings have already led to initial proposals for cooperation, underlining the dynamic and competitive presence of Cyprus in the international maritime space,’ it adds.

According to the press release, the Cypriot pavilion attracted a significant number of visitors, who were informed about the development of maritime technology in Cyprus, as well as the comparative advantages of Cyprus as a modern and reliable maritime hub.

UNSG’s will to continue his Cyprus efforts has been declared says FM

The UN Secretary-General’s will to continue his efforts on the Cyprus issue has been declared, Foreign Minister Constantinos Kombos said on Tuesday, referring once again to the joint statement following the leaders’ meeting last week and the position on a solution based on UN Security Council resolutions.

Following a Cabinet meeting, Kombos was invited by the press to comment on a statement by the UN Secretary-General’s Personal Envoy, Maria Angela Holguin, on the expanded Cyprus meeting and the fact that good preparation is needed, as well as to comment whether this meeting is uncertain.

He clarified that he does not agree with this approach and added that it is a matter of interpretation and that in any case the SG is the one to send out the invitations.

“Ultimately, the Secretary General must take into account a series of factors. Many of these also have a practical dimension. Therefore, the final decision was and always remains with the Secretary General, whose will is declared in terms of continuing intensive engagement with the Cyprus issue”, he said.

Kombos noted also that the issue of the five-party expanded meeting for Cyprus and when this will take place depend on how things progress, possibly, but also on a series of other parameters.

The FM reassured of the Greek Cypriot side’s readiness and commitment to return to the dialogue, adding that it would be ideal if we could reach a form of announcement that we are now entering into substantive negotiations.

But he advised all to be patient as the SG’s envoy is yet to meet with Turkish FM.

Replying to another question the FM noted that there are other statements by Holguin in her interview [with Greek Cypriot daily Phileleftheros], ie the reference to the UN resolutions in the joint communiqué after the leaders’ meeting.

In response to another question, he said that the Greek Cypriot side was informed about Holguin’s meetings in Athens but will not speak on behalf of her interlocutors.

Social protection expenditure as a percentage of the GDP at 19.2% in 2023, according to Cystat

The Social Protection Expenditure as a Percentage of the GDP stood at 19.2% in 2023, according to the Statistical Service of Cyprus.

In a press release issued on Tuesday, it says that according to the results of the Social Protection Survey, which is based on the principles and rules determined by the European System of Integrated Social PROtection Statistics (ESSPROS), the social protection expenditure in Cyprus, as a percentage of the GDP, reached 19.2% in 2023, compared to 20.6% in 2022 which corresponds to pound 6,232.2 million in 2023, compared to pound 6,116.4 million in 2022.

The most significant functions were those of old age and sickness/healthcare, which combined, constituted 76.3% of the social protection benefits for 2023 (compared to 76.1% in 2022). The largest share of old age benefits (which comprise both cash benefits, i.e., periodic pensions and benefits, and lump sum benefits, as well as old age benefits in kind like housing, provision of assistance in carrying out daily tasks and other benefits in kind), concerns periodic pensions which amounted to pound 2,109.6 million and which constituted 83.5% of the total old age benefits.

The Statistical Service notes that the pound 1,986.3 million of the periodic pensions that were granted to beneficiaries in 2023, were non-means tested, i.e. without verification of the recipients’ financial situation.

There was an increase in the social benefits of the function of old age in 2023, which amounted to pound 2,525.3 million (compared to pound 2,391.6 million in 2022), the function of sickness/healthcare which amounted to pound 2,126 million in 2023 (compared to pound 2,095.4 million in 2022), the function of survivors with the social benefits amounting to pound 378.3 million in 2023 (compared to pound 360.2 million in 2022), the function of family with pound 283.2 million in 2023 (compared to pound 257.7 million in 2022), the function of disability with pound 193.2 million in 2023 (compared to pound 184.7 million in 2022) and the function of social exclusion with pound 234.9 million in 2023 (compared to pound 229.1 million in 2022).

On the contrary, a decrease in social benefits was recorded in the function of unemployment in 2023, which amounted to pound 246.3 million (compared to pound 265.9 million in 2022) as well as in the function of housing with social benefits which amounted to pound 108.4 million in 2023 (compared to pound 112.6 million in 2022).

Most of the social protection benefits that were provided to beneficiaries in 2023 (89.6%), were non-means tested benefits. Specifically, this accounts for pound 5,461.1 million in 2023. In most cases, the beneficiaries, having made cash contributions to various insurance funds (e.g. the Social Insurance Fund), gain the right to benefits, without their income being a criterion. In other words, most social protection benefits are not explicitly or implicitly conditional on the beneficiary’s income and/or wealth falling below a specified level.

Furthermore, most of the benefits in 2023 were cash benefits (pound 3,828.4 million), whereas benefits in kind constituted only 37.2% of the total of social protection benefits (pound 2,267.2 million).

As regards cash benefits, 80.7% (pound 3,089.3 million) were provided periodically, for example pensions and other benefits, whereas lump sum benefits constitute 19.3% of the cash benefits.

The Social Insurance Scheme is the largest provider of social benefits in Cyprus with benefits of pound 1,950.1 million in 2023, representing a share of 31.3% of the total expenditure. The contribution of the General Healthcare System (GHS) is also significant, with pound 1,459.1 million which represents a share of 23.4% of the total expenditure.

Then follows the scheme of Other Governmental Social Protection with pound 806 million and a share of 12.9%, the scheme of the semi-autonomous Social Insurance Institutions with pound 605.1 million and a share of 9.7%, the Central Government Health Services with pound 529.4 million and a share of 8.5% and the Civil Service Social Protection with pound 514.7 million and a share of 8.3%.

PRESS RELEASE – EUROPEAN COMMISSION

EU allocates pound 29 million for Myanmar and Rohingya humanitarian crises

The European Union has allocated an additional pound 15 million in humanitarian aid to address the needs of communities impacted by the ongoing conflict in Myanmar, and pound 14 million in development aid for Rohingya refugees and their host communities in Bangladesh and other neighbouring countries.

These new funds come as the intensifying conflict in Myanmar continues to displace more people within the country, while also driving more displacement towards Bangladesh and neighbouring countries. The situation is further aggravated by the earthquake that hit Myanmar earlier this year, leading to a collapse of basic services such as health, access to water and sanitation and education, and to a sharp increase in hunger.

The largest share of the humanitarian contribution, up to pound 12 million, will support the communities affected by the conflict in Myanmar. The funding will prioritise food and nutrition assistance, given the concerning numbers of people at risk of famine.

In Bangladesh, pound 2 million will reinforce the existing EU assistance to Rohingya refugees, with a focus also on food and nutrition. Finally, an additional million will also support Myanmar and Rohingya refugees displaced in other neighbouring countries where they live in vulnerable conditions.

This assistance comes in addition to the almost pound 50 million provided in humanitarian aid for the crisis in Myanmar and its regional impact, including emergency funding in response to the earthquake that hit the country end of March. It also adds to over pound 32 million already allocated in humanitarian assistance to Bangladesh this year.

The additional pound 14 million in development assistance will focus on sustainability and self-reliance in the Rohingya camps in Cox’s Bazar. It will include support for skills and livelihoods development.

Increasing numbers of people are fleeing across the border to Bangladesh, with over 136,000 new Rohingya refugees in Cox’s Bazar since January 2024. The worsening situation in the camps in Bangladesh is pushing more people to risk dangerous sea journeys to flee to other countries.

(For more information: Eva Hrncírová – Tel.: +32 2 298 84 33; Quentin Cortès – Tel.: +32 2 296 47 35)

pound 3 billion EU COVID-19 Macro-Financial Assistance drives reforms and recovery in partner countries

The European Commission has concluded the ex-post evaluation of the EU’s exceptional pound 3 billion macro-financial assistance (MFA) package put in place in response to the very specific circumstances of the COVID-19 pandemic. At the height of the crisis, the package provided critical support to ten partner countries: Albania, Bosnia and Herzegovina, Georgia, Jordan, Kosovo, Moldova, Montenegro, North Macedonia, Tunisia and Ukraine. Ukraine and Moldova have since become EU candidate countries.

The design of the package successfully balanced urgency with policy impact, pursuing important reforms agreed with the countries as part of the MFA’s conditionality (in line with the EU perspective, for candidate countries).

The assessment confirms that the MFA package was a timely, well-targeted and highly relevant response to the unprecedented economic shock triggered by the COVID-19 pandemic. It provided essential financial relief at a moment of acute fiscal pressure, helping partner governments stabilise their economies, sustain essential public services and preserve macroeconomic confidence.

The report highlights that the MFA was mobilised with exceptional speed in close coordination with co-legislators, as all ten operations were bundled into a single proposal in May 2020, adopted within five weeks with first disbursements made in early autumn. First tranches were released rapidly, while second tranches remained linked to targeted structural reforms aligned with national priorities.

The evaluation confirms that MFA supported progress in key areas, including public financial management, governance, rule of law and anti-corruption efforts, social protection and sectoral reforms, with conditions adapted to regional contexts and underlying vulnerabilities.

Overall, the evaluation concludes that the COVID-19 MFA package achieved its objectives effectively and reinforced the EU’s role as a reliable and responsive partner in times of crisis. The experience reaffirmed the strategic value of MFA as a flexible crisis instrument capable of addressing urgent liquidity needs, catalysing reforms and reinforcing macroeconomic stability in the EU’s neighbouring regions.

(For more information: Balazs Ujvari – Tel.: +32 2 295 45 78; Francisca Marcal Santos – Tel.: +32 2 299 72 36)

EU adopts new measures against Russian shadow fleet ecosystem and Belarus

The Commission welcomes yesterday’s decision by EU Member States to adopt supplementary sanctions against key components of the Russian shadow fleet value chain, as well as against Belarus.

These new measures aim at further increasing pressure on Russia and Belarus to reinforce and support the EU’s commitment to securing a just and lasting peace in Ukraine.

Yesterday, the EU decided to impose supplementary sanctions on the shadow fleet ecosystem, the opaque web of enablers and operators underpinning the shadow fleet business. This includes shipowners, brokers, and commercial entities mismanaging the shipping register for some Member States.

Additionally, the EU has introduced new criteria for sanctioning individuals or groups from Belarus involved in actions that undermine EU democracy, rule of law, and security.

More information is available in our press release online.

(For more information: Olof Gill – Tel.: +32 2 296 59 66; Saul Louis Goulding – Tel.: +32 2 296 47 35)

Commission report shows that Europe has made good progress in ensuring interoperability in digital public services

The European Commission has published its first Annual Report on interoperability in the Union, showing that the EU is advancing toward more efficient, connected and citizen-focused digital public services. Interoperability in the public sector means that different organisations’ information systems, data and business processes can work together seamlessly. It allows administrations to share and reuse data securely across borders and sectors. This has been supported by a new governance structure and the launch of the Interoperable Europe Portal as a central hub for tools, solutions and guidance – showing the progress made since the Interoperable Europe Act entered into force in April 2024.

The report also highlights innovation initiatives such as regulatory sandboxes, cooperation with GovTech and the launch of the Interoperable Europe Community. Successful examples like EMREX, a secure, digital solution for the exchange of verified student records across borders, demonstrating how interoperability already facilitates secure cross-border services.

The Commission and Member States plan to intensify these efforts in 2026 with the implementation of the first Interoperable Europe Agenda. Further support services for public administrations, streamlined assessment procedures and newly approved labelled solutions will accelerate digital transformation. These measures will help modernise public administrations, reduce administrative burden and support the EU’s Digital Decade goal of putting all key public services online by 2030.

The report is available online.

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

EU agriculture to maintain high level of productivity, according to Agriculture Outlook 2025-2035

The European Commission has released its latest EU Agricultural Outlook report, which presents the projections for EU agricultural markets until 2035. The report predicts slower productivity growth amid various challenges ranging from climate change to the availability and affordability of inputs, while EU agriculture transforms towards more sustainable production systems.

Based on the report, EU agriculture is expected to maintain a high level of productivity until 2035 to support positive trade performance, particularly for high-value commodities. The EU is projected to maintain its self-sufficiency in cereals, meat, and dairy, and EU agri-food exports will remain an important contributor to global food security. The value of EU agricultural production is expected to increase steadily, mainly due to cereals, dairy, and fruits and vegetables. However, input costs such as fertilisers, energy, and feed are likely to remain high. The overall environmental impact of EU farms is expected to improve, with a reduction in both greenhouse gas emissions and nitrogen surplus. Labour productivity remains the main driver of overall EU agricultural productivity, contributing to an increase in real income per agricultural worker.

The outlook for agricultural markets relies on market intelligence available until end of October 2025 for agricultural production and trade, and is based on a set of macroeconomic assumptions deemed the most plausible at the time of the analysis. The medium-term market projections provide insights for all stakeholders in the EU agri-food chain, serving as a baseline for designing policy responses to emerging challenges and opportunities, towards an attractive, competitive, resilient and sustainable agricultural sector.

More information is available online.

(For more information: Balazs Ujvari – Tel.: +32 2 295 45 78; Constanze Ulrich – Tel.: +32 2 299 38 44)

Commission seeks feedback on EU marine environmental protection rules

Yesterday, the European Commission launched a public consultation and a call for evidence in view of the upcoming revision of the Marine Strategy Framework Directive (MSFD).

This follows the publication in March 2025 of the evaluation of the MSFD. It showed that, while it formed an ambitious framework, the Directive did not fully achieve its good environmental status objective, which means having clean, healthy and productive seas. Marine biodiversity is declining, and pollution continues to harm marine life. The evaluation also showed that there is clear scope for the reduction of administrative burden through regulatory simplification and enhanced data management.

Announced in the Water Resilience Strategy, the revision of the MSFD is intended to simplify the implementation of the Directive’s requirements, protect the marine environment further, and reduce administrative burden. This is necessary to maintain ocean health, as well as restore and protect the water cycle, in line with the source-to-sea approach of the European Water Resilience Strategy and European Ocean Pact.

Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall said: “Healthy, clean and productive seas and ocean are essential to preserve our environment and to enable our blue economy to thrive. I want to hear from stakeholders and citizens how to improve the protection of the marine environment while making our EU rules more effective and simpler to implement.”

All stakeholders are encouraged to participate in the online consultation using the Have Your Say portal. The feedback period is open until 9 March 2026.

You can find more information on the launch of the public consultation and call for evidence online.

(For more information: Maciej Berestecki – Tel.: +32 2 296 64 83; Isabel Arriaga e Cunha +32 229-52117)

First-ever Soil Monitoring Law enters into force for healthier soils in Europe

Today, the Directive on soil monitoring and resilience enters into force to improve soil health across Europe, with significant implications on the broader economy.

Healthy soils are essential for agricultural productivity, plant’s pest resistance, and nutritional food quality and safety. They are critical to ensuring the long-term viability and profitability of the EU’s farming sector. Yet soil degradation affects every EU Member State with an estimated 60% to 70% of soils currently classified as unhealthy. This degradation costs the EU over pound 50 billion every year.

The new law will help enhance soil resilience to natural disasters, heatwaves and extreme weather events, as well as other critical environmental challenges, such as erosion, contamination, and biodiversity loss. This will strengthen the EU’s economic competitiveness and food security.

Member States must now transpose the Directive into national law and establish soil monitoring frameworks. The Commission will support this process with implementing acts and guidance.

Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, said: ‘With the Soil Monitoring Law, Europe takes a decisive step to protect one of its most precious resources. Healthy soils are the foundation for our food, our economy and our fight against climate change. By helping farmers and authorities to safeguard soil health, while keeping the administrative burden to a minimum, this Directive will make Europe more resilient and secure nutritious food for future generations.’

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

New EU legislation enters into force to reduce microplastic pollution

New EU rules to prevent microplastic pollution from plastic pellets take effect today, marking a major step in the EU’s work to reduce microplastic emissions at their source. The new rules will help ensure fair competition across the Single Market, encourage innovation and investments in cleaner practices, and support Europe’s transition to a sustainable economy.

Plastic pellets – the fundamental raw material for most plastic products – are a significant source of microplastic pollution. Once released, pellets remain in the environment, resisting biodegradation and dispersing across soils, rivers and oceans, posing grave risks to ecosystems and human health.

The new rules apply to all economic operators managing installations in the EU that handle five tonnes or more of plastic pellets per year. This includes manufacturers, recyclers, converters, stockists and other handlers. They also apply to all carriers transporting pellets within the EU, as well as to actors involved in maritime transport.

Operators must avoid, contain and clean up any spills or losses, as well as establish and implement risk management plans tailored to the nature and size of their installations. Carriers are not required to prepare risk management plans but must comply with the obligations set out in the Regulation.

Large and medium companies that handle more than 1,500 tonnes of plastic pellets annually must obtain a certificate of compliance or a permit. Simpler compliance requirements apply to small companies and microenterprises.

By 17 December 2026, the Commission will develop awareness-raising and training materials to support the Regulation’s implementation and will request European standardisation organisations to prepare harmonised standards for estimating quantities of losses.

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

Commissioner Kubilius to respond to calls for support at Eastern Border Security in Helsinki

Europe is stepping up efforts to protect its most exposed borders as security pressures intensify along the EU’s eastern frontier.

Against this backdrop, Commissioner for Defence and Space Andrius Kubilius attends the first Eastern Flank Summit today in Helsinki, at the invitation of Finnish Prime Minister Petteri Orpo, alongside leaders from EU countries on the Eastern flank.

The Summit brings together those Member States facing the most direct security risks to agree on concrete measures to strengthen the EU and NATO’s eastern perimeter and boost overall defence readiness. A central focus will be countering hybrid threats and how Eastern Flank countries could use EU defence support instruments to close capability gaps, including through stronger air defence and counter-drone systems.

These discussions directly feed into the proposed Eastern Flank Watch flagship, which aims to improve early warning, surveillance and coordinated response along the EU’s eastern border. During his visit, Commissioner Kubilius will also meet the Finnish Parliament’s Defence Committee, underlining the EU’s commitment to prioritising the security of frontline states and building a resilient, unified European defence.

(For more information: Thomas Regnier +32 2 299 10 99, Marine Strauss +32 298 91 03)

Statement by Chancellor Merz, Prime Minister Frederiksen, President Stubb, President Macron, Prime Minister Meloni, Prime Minister Schoof, Prime Minister Støre, Prime Minister Tusk, Prime Minister Kristersson, Prime Minister Starmer, as well as President Costa and President von der Leyen

The Leaders welcomed significant progress on President Trump’s efforts to secure a just and lasting peace in Ukraine. They also welcomed the close work between President Zelenskyy’s and President Trump’s teams as well as European teams over the recent days and weeks. They agreed to work together with President Trump and President Zelenskyy to get to a lasting peace which preserves Ukrainian sovereignty and European security. Leaders appreciated the strong convergence between the United States, Ukraine and Europe.

Leaders agreed that ensuring the security, sovereignty, and prosperity of Ukraine was integral for wider Euro-Atlantic security. They were clear that Ukraine and its people deserved a prosperous, independent, and sovereign future, free from fear of future Russian aggression.

Both the US and European leaders committed to work together to provide robust security guarantees and economic recovery support measures for Ukraine in the context of an agreement on ending the war. This would include commitments to:

Provide sustained and significant support to Ukraine to build its armed forces, which should remain at a peacetime level of 800,000 to be able to deter conflict and defend Ukraine’s territory.

A European-led ‘multinational force Ukraine’ made up from contributions from willing nations within the framework of the Coalition of the Willing and supported by the US. It will assist in the regeneration of Ukraine’s forces, in securing Ukraine’s skies, and in supporting safer seas, including through operating inside Ukraine.

A US led ceasefire monitoring and verification mechanism with international participation to provide early warning of any future attack and attribute and respond to any breaches along with a deconfliction mechanism to work on mutual deescalatory actions that can be taken to benefit all parties.

A legally binding commitment, subject to national procedures, to take measures to restore peace and security in the case of a future armed attack. These measures may include armed force, intelligence and logistical assistance, economic and diplomatic actions.

Invest in the future prosperity of Ukraine, including making major resources available for recovery and reconstruction, mutually beneficial trade agreements, and taking into account the need for Russia to compensate Ukraine for the damage caused. In this vein, Russian sovereign assets in the European Union have been immobilised.

Strongly support Ukraine’s accession to the European Union.

The leaders expressed their support for President Zelenskyy and agreed to support whatever decisions he ultimately makes on specific Ukrainian issues. They reaffirmed that international borders must not be changed by force. Decisions on territory are for the people of Ukraine, once robust security guarantees are effectively in place. They agreed that some issues would need to be resolved in the final stages of negotiations. They underlined that they would support President Zelenskyy to consult his people if needed.

They were clear that as in any deal, nothing is agreed until everything is agreed and that all parties must work intensively towards a solution that could assure a lasting end to the fighting.

They were also clear that any deal should protect the long-term security and unity of the Euro-Atlantic and the role of NATO in providing robust deterrence. They stated that any elements affecting the EU and NATO will be discussed among EU and NATO members respectively.

It is now incumbent upon Russia to show willingness to work towards a lasting peace by agreeing to President Trump’s peace plan and to demonstrate their commitment to end the fighting by agreeing to a ceasefire. Leaders agreed to continue to increase pressure on Russia to bring Moscow to negotiate in earnest.

They all committed to work on rapid further progress in the coming days and weeks to jointly conclude and endorse an agreement for a lasting peace. They reaffirmed their strong support for President Zelenskyy and the people of Ukraine in their fight against Russia’s illegal invasion and in delivering a just and lasting peace.

This statement remains open for other countries to join.

Statement by President von der Leyen following the meeting on peace for Ukraine convened by German Chancellor Merz

It was a good meeting in Berlin tonight. Because we are seeing real and concrete progress. That progress is made possible thanks to the alignment between Ukraine, Europe, and the United States. So we will continue working closely with President Zelenskyy and President Trump to achieve what we all want. A just and lasting peace that preserves Ukraine’s sovereignty and strengthens its security.

Our approach is clear. And we work on every step that will ultimately put an end to the bloodshed.

The first step is a lasting ceasefire. The path to get there is known. Russia must feel sustained pressure to come to the negotiating table – not for show, but for results. To this end, Europe will continue to raise the cost of Russia’s war. We have a new sanctions package in preparation. And we have immobilised Russian assets in the EU over the long term.

Second, peace requires robust and credible security guarantees. I welcome that the United States is positively considering to provide military support to Ukraine. And so is Europe. To strengthen its armed forces, defend Ukraine’s territory and deter future attacks. Finally, one of strongest long-term guarantees is also the clearest one. It’s Ukraine’s path into the European Union.

These security guarantees must be underpinned by firm principles. We will respect the decisions Ukraine makes for itself. Decisions on territories are for Ukraine to take – and Ukraine alone. Likewise, issues affecting the EU and NATO will be discussed among the EU and NATO members. In short: nothing about Ukraine without Ukraine. Nothing about the EU without the EU. Nothing about NATO without NATO.

My third point is on economic recovery. Ukraine’s needs are both immense and urgent. We are committed to the reconstruction and the future prosperity of Ukraine. Europe will remain its strongest and most reliable partner. We have proposed to cover two-thirds of Ukraine’s financing needs for the next two years, around pound 90 billion. So the discussions this week at the European Council will be decisive.

We know that we will never be able match the sacrifice of the Ukrainian people. But we will support their fight for survival for as long as it takes. For their country, their territory, and their right to live free from fear. Thirty-four years ago this month, Ukrainians voted overwhelmingly for independence from Russia. They voted yes to Ukraine being Ukraine. That choice remains unbroken. The Ukrainians defend it everyday, admirably, on the battlefield. They deserve a peace worthy of their courage.

EU adopts new measures against Russian shadow fleet ecosystem and Belarus

The Commission welcomes today’s decision by EU Member States to adopt supplementary sanctions against key components of the Russian shadow fleet value chain, as well as against Belarus.

These new measures aim at further increasing pressure on Russia and Belarus to reinforce and support the EU’s commitment to securing a just and lasting peace in Ukraine.

Supplementary sanctions on shadow fleet ecosystem

The EU has identified the shadow fleet as a crucial chokepoint to further constrain Russia’s revenues from seaborne oil exports. Over the past 18 months, the EU has designated more than 550 vessels, predominately oil tankers which do not meet insurance and safety standards. These vessels are subject to a ban on port access and on provision of maritime services, severely disrupting their normal operations. Further vessel designations are being considered.

Today, the EU decided to impose supplementary sanctions on the shadow fleet ecosystem, the opaque web of enablers and operators underpinning the shadow fleet business. This includes shipowners, brokers, and commercial entities mismanaging the shipping register for some Member States.

Constraining Russia’s energy revenues has consistently been – and will remain – a top priority for the EU, as it weakens Moscow’s ability to wage its illegal war of aggression against Ukraine.

New measures against Belarus to tackle hybrid threats

Additionally, the EU has introduced new criteria for sanctioning individuals or groups from Belarus involved in actions that undermine EU democracy, rule of law, and security. Recent incidents involving the smuggling of meteorological balloons into Lithuania’s airspace, part of a state-sponsored hybrid campaign, underscore this need for action. The EU firmly opposes any threats aimed at undermining the stability and security of its Member States.

Today’s decision is in response to the European Council’s findings from October 23, 2025. The Council highlighted increased hybrid attacks from Russia and Belarus, including violations of EU airspace. Additionally, on October 29, 2025, the High Representative strongly condemned Belarus for its ongoing provocative actions against the EU and its Member States.

For more information

Measures adopted since 2022

More information on sanctions

EU Sanctions Helpdesk

Quote(s)

Russia’s shadow fleet is its main cash lifeline to fund its illegal war so we are dismantling it, vessel by vessel. On top of new and rolling monthly sanctions on vessels, we are now tackling the operators behind the shadow fleet system from shipowners to brokers and those managing shipping registries. Weakening Russia’s ability to wage war in Europe remains a major priority for the EU.

Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission

These measures reinforce the EU’s determination to respond decisively to both economic circumvention and hybrid threats. Whether through sanction evasion or destabilising actions against our Member States, those who seek to undermine Europe’s security and values will face firm and coordinated consequences.

Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union

Video message by President von der Leyen at the EU Agri-Food Days

“Check against delivery”

Commissioner Hansen, dear Christophe,

Ladies and Gentlemen,

Let me begin these Agri-Food Days with the words of a young European farmer sharing what drives him. He said:

‘Farming is the place to be, if you really want to have an impact’.

These words are so true. Our farmers and fishers are not just important for Europe – you are indispensable. Our agri-food sector is the backbone of Europe’s independence.

You put high-quality food on our tables. You guarantee food security for the European Union’s 450 million citizens. You create jobs and opportunities in rural areas. And you make a real impact for Europeans, each and every day.

This is why we are launching a ‘buy European food’ campaign. To provide greater support for your vital industry.

We all know that you are facing strong headwinds. From tariffs to higher production costs, or the growing impact of extreme weather. In times of uncertainty, your sector needs reliability and support. You need to know that in Europe, farmers and fishers can thrive.

Let me focus on four ways we are making this happen.

First, simplification. One year ago, we announced the Omnibus package. Because you need less paperwork and more trust. Our proposals can save nearly 1.6 billion euro for farmers, every year. And I am confident that you will see the changes – in time and money saved.

My second point is about the young generation of farmers. They bring energy and innovation to the sector. But starting a farm must be simpler and more attractive for young people. That is why we have launched a new strategy for generational renewal. Which includes for example a ‘starter pack’ for young farmers – with up to 300,000 euros to kick off the business.

Young farmers will not only feed our citizens, they will bring fresh ideas, while carrying traditions into the future. We will support them in any possible way.

And my third point, we must preserve and grow your access to global markets. Our extensive network of trade deals across the world creates valuable opportunities for you to sell your products. This is why we are concluding a series of new trade deals to create even more.

And as always, ensure all necessary protections and safeguards. Safeguards that ensure a level playing field and protect food safety standards. And if needed, we can limit the inflow of the most sensitive products. We will open new markets. And we will always protect our farmers.

Finally, let me assure you that agriculture will be at the heart of our next budget. Not only are we setting a minimum envelope for farmers’ and fishers’ income support. Member States and regions will have the power and the flexibility to give further support to rural areas. So that support can go where it is needed most. And you have what you need to protect your livelihoods, and guarantee our food security and standards.

I want to thank you all for the vital work you do. And wish you a successful few days.

Hourly labour costs show annual increase in 3Q of the year

An annual increase of 3.5% was recorded in the 3rd quarter of 2025 regarding the hourly labour costs (total cost) compared with the same quarter of the previous year.

According to the Statistical Service of Cyprus, on the basis of provisional data, the two main components of labour costs, wages and salaries per hour worked and non-wage costs per hour worked increased by 3.5% and 3.6% respectively, compared with the same quarter of the previous year.

The hourly labour cost (total cost), seasonally adjusted, increased by 0.9% compared to the previous quarter.

The hourly labour cost that refers to wages and salaries, seasonally adjusted, also increased by 0.9% compared to the previous quarter, as did the hourly non-wage cost, seasonally adjusted, the Statistical Service says.