Category: Cyprus News Agency

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).

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (C)

FOR THE PERIOD FROM 1800 30/09/2025 UNTIL 1800 01/10/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1012hPa (hectopascal)

Seasonal low pressure is affecting the area. The weather will be mainly fine but locally increased cloud will be present.

Visibility: Good

Sea surface temperature: 27°C

Warnings: NIL

The President of the Hellenic Parliament, Nikitas Kaklamanis, begins his contacts in Cyprus on ?uesday, on his first official visit to the island after his election.

Kaklamanis will be received in the morning by President Nikos Christodoulides and will then hold a meeting with President of the Parliament Annita Demetriou. At noon, he will address a special session of the House Plenary.

During the visit, which will last until Wednesday, October 1, the President of the Hellenic Parliament will also meet with Archbishop of Cyprus Georgios and leaders and representatives of the political parties.

On October 1, he will also attend the military parade for the 65th anniversary of the independence of the Republic of Cyprus.

The President of the Hellenic Parliament, as part of his official visit, will lay a wreath at the Tomb of Makedonitissa, at the tombs of EOKA heroes and at the Hero’s Monument at ELDYK camp in Malounta.

Cyprus’ Deputy Minister of Research, Innovation, and Digital Policy, Nicodemos Damianou has asked for “clear parameters and criteria for the participation of third countries” in EU-funded dual-use and defence technology programs in statements upon his arrival at the EU Competitiveness Council meeting on research issues in Brussels, on Tuesday morning.

The Deputy Minister focused particularly on the new framework program and its provisions for supporting dual-use and defense technologies. “While we support this direction, Cyprus highlights the fact that there need to be clear parameters and criteria for participation of third countries in this program, particularly countries which have shown a history of going against strategic interests of EU member states,” he underlined.

Damianou said that this is”a decisive moment for Europe,” noting that the discussions and decisions made “affect our ability to innovate, to remain competitive and to turn research results into tangible benefits for our citizens and our economies.’

He further explained that the Council is adopting conclusions on the EU Start-Up and Scale-Up Strategy this morning. “This is an important step, particularly with regards to our ability to retain not only our talent but also our innovative start-ups in Europe. Cyprus stands ready to push forward with the implementation of this strategy during our upcoming Presidency,” he stressed.

Additionally, according to the Deputy Minister, the Council is endorsing the EU Life Sciences Strategy today, which “is aligned with a number of our national priorities, namely, and to name a few, our focus on biotech, agritech, energitech, but also biobanks and sustainable food systems.’

Finally, at the policy debate level, discussions focused on the new approach to research and technology infrastructures, which is particularly important in areas such as artificial intelligence, high-performance computing, and semiconductors. “Cyprus advocates for stronger coordination and more accessibility, particularly with regards to SMEs and start-ups,” the Deputy Minister concluded.

The Cyprus Stock Exchange (CSE) All Share Index closed at today`s stock exchange meeting as follows:

MEETING DATE: 30/09/2025

INDICES BASE VALUES: FTSEMed=5000, OTHERS = 1000

EURO (pound )

TRADED VALUE 402,109.00

President of the Hellenic Parliament, Nikitas Kaklamanis, has said that it is a positive development that for the first time in 8 years there is some movement as regards efforts to solve the Cyprus issue.

Kaklamanis was addressing a special session of the House of Representatives plenary in Nicosia, where he is paying an official visit.

On her part, the President of the House of Representatives, Annita Demetriou, pointed out that the first official visit of Nikitas Kaklamanis to Cyprus as President of the Hellenic Parliament ‘entails high symbolism, but is also an act of fundamental political importance’, because ‘it demonstrates the strong historical ties between Greece and Cyprus and demonstrates the will of our two states to maintain a solid common front of Athens and Nicosia’.

Demetriou noted, inter alia, that ‘the strong fraternal bonds, the solidarity and the coexistence of Greece and Cyprus are reflected in the excellent cooperation between our two Parliaments over time, with a milestone in this cooperation being the publication of the ‘Cyprus File’, an extremely difficult undertaking, which contributes decisively to the goal of national self-awareness’.

She also assured that the House of Representatives will continue to work to further strengthen and expand cooperation with the Greek Parliament at all levels.

In his address, the President of the Hellenic Parliament, Nikitas Kaklamanis, pointed out that Greece and Cyprus have made it clear that a solution to the Cyprus problem is not conceivable without the complete withdrawal of the illegal occupation troops and without the liberation of Cyprus from anachronistic systems of guarantees and rights of third-party intervention in Cypriot affairs.

He noted that it is a positive development that for the first time in 8 years there is some movement in efforts to solve the Cyprus problem, at the initiative of the Secretary-General of the United Nations and the President of the Republic of Cyprus.

He also assured that, despite the climate of tension in the Hellenic Parliament, Cyprus is one of the few issues that unites the political parties in the Parliament.

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. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

President of Cyprus Nikos Christodoulides pledged on Tuesday that the Greek Cypriot side will do its utmost for the UN Secretary-General’s efforts for a Cyprus settlement to yield results. He also noted that it is important that after so many years there is activity, as underlined by the SG himself during the Geneva meeting for the Cyprus issue last March.

The President made statements welcoming the President of the Hellenic Parliament, Nikitas Kaklamanis, in Nicosia, on an official visit. The Cyprus issue is one of the few issues on which there is consensus in the Hellenic Parliament, Kaklamanis said in his statements.

President Christodoulides also expressed the view that the outcome of the “electoral” process in the Turkish Cypriot community mid-October will be important. Asked by the President of the Hellenic Parliament if he believes that there can be a change, he replied “we will see what the outcome will be.”

He said that no one at this time can safely jump to conclusions on the outcome. He also went on to note that whatever the outcome is, Turkey is the one to take final decisions on the most serious issues regarding the Turkish Cypriot community.

Kaklamanis expressed the hope that the efforts will be successful, although he stressed that he is moderately optimistic.

President Christodoulides, in his statement before the media, pointed out that Kaklamanis is in Cyprus to attend tomorrow’s parade for the Cyprus Independence, “an important anniversary and the most important conquest of the Cyprus people as a result of the national liberation struggle of EOKA”.

The President told Kaklamanis that the Hellenic Parliament has played a decisive role in developments concerning Cyprus over time and made particular reference to the accession of the Republic of Cyprus to the European Union in 2004, “the most important diplomatic success of the Cypriot people and the Republic of Cyprus.”

He noted also that in less than 100 days Cyprus will also assume, for the second time, the Presidency of the Council of the European Union, saying that this is a national challenge “that I am sure we will respond to successfully”.

President Christodoulides told the President of the Hellenic Parliament that he is visiting Cyprus at a time when there are many developments in our region, noting that Cyprus, together with Greece, through actions and not only words, prove that they are pillars of security and stability.

“We are countries that talk to all the states in the region and we are making efforts, through synergies, to prove the importance of cooperation. This is the only path via which to address common challenges,” he said.

The President also praised Kaklamanis’ political career as an MEP, Mayor, Minister and now President of the Hellenic Parliament, as well as his long-standing interventions on everyday issues with which, he said, he agrees and has the same approach.

Kaklamanis thanked the President for his very kind words, which he described as “perhaps a little excessive”. He stated that his interest in Cyprus began in the 1990s, when he was a Member of the European Parliament and Vice-President of the Joint Committee of the European Parliament and the House of Representatives when the effort for Cyprus’ accession had begun.

He referred to his close cooperation at the time with MEP Pauline Green, who was very pro-Cyprus.

Kaklamanis also pointed out to the President that in conditions of political acrimony in Greece, “fortunately the issue of Cyprus is one of the few on which there is complete consensus in the Greek Parliament.”

He said that there may be some verbal differences sometimes for oppositional reasons, but in spite of this there is a complete consensus in views. “There is no political party in Parliament that does not identify with the established national line that has existed for years”, he stressed.

Kaklamanis said that he was informed by the Minister of Foreign Affairs of Greece, George Gerapetritis, about the latest developments, noting that “he has a restrained optimism.”

He also referred to a visit to Turkey under President Demirel 30 years ago, noting that what he said 30 years ago is now being repeated by now President of Turkey Tayyip Erdogan on Cyprus and the Aegean.

He said that he is moderately optimistic about the discussions on a Cyprus solution, hoping that these efforts will be successful.

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.

UNSG met with the two leaders President Christodoulides and T/c leader Ersin Tatar last week in New York city. A fresh meeting will probably take place in November. In the meantime his personal envoy Maria Angela Holguin is expected in Cyprus the next weeks to prepare the new meeting.

Head of European Investment Bank (EIB) Nadia Calviño has said that water and housing are the two key challenges in Cyprus and expressed her pride for the European support and impact of European investment in Cyprus.

Calvino was speaking to the press on Tuesday, before a meeting with the President of the Republic Nikos Christodoulides, who attended the joint meeting of the boards of the European Investment Bank and the European Investment Fund, in Limassol.

“I want to thank Cyprus for the warm welcome. We are having a very productive meeting which has allowed us also to see the impact of the investments we finance on the ground,” she said, adding that they have visited student residences in the Cyprus University of Technology as well as the Waste Water Treatment Plant in Limassol.

On his part, President Christodoulides thanked for the support of EIB in Cyprus for a number of projects all these years, adding that Cyprus is looking forward to their future cooperation.

“We are looking forward to our future cooperation, especially on issues of great interest for the Republic of Cyprus like defence and security, research and innovation. We are going to discuss this during our bilateral meeting,” the President noted.

Meanwhile, Calviño said that they have adopted in Cyprus the second phase of the climate road map.

“We will be focusing on projects that contribute to competitiveness and security of Europe. We are going to be doubling investment into adaptation and prevention on the impact of climate change a challenge that is very clear also here in Cyprus and we will be radically simplifying our processes to reduce cost and red tape for companies, particularly Small and Medium-sized companies,” she concluded.

‘Cataract: Modern Diagnosis and Treatment’ – Public Information Day at European University Cyprus

European University Cyprus (EUC), in collaboration with the Holy Archdiocese of Kykkos, the Cyprus Medical Association, and the ‘Apostolos Loukas’ Medical Center, is organizing a special event dedicated to cataract awareness and treatment:

‘Cataract: Modern Diagnosis and Treatment’, as part of World Sight Day.

The event will take place on Saturday, October 4, 2025, at the Cultural Center of European University Cyprus.

Aim and Key Themes

The information day aims to raise awareness among the public and healthcare professionals about the latest methods in cataract diagnosis and treatment, highlighting technological advances and challenges faced in Cyprus and the wider Eastern Mediterranean region.

Distinguished keynote speakers include:

Dr. Ioannis Aslanides – President of the Hellenic College of Ophthalmology, Founder and Medical Director of Emmetropia S.A., Professor of Ophthalmology at Weill Cornell Medical College in New York, Visiting Professor at Wenzhou Medical University in China, and Member of the Scientific Committee of the Hellenic Olympic Committee

Dr. Anastasios Kanellopoulos – Consultant Ophthalmic Surgeon, Founder and Scientific Director of LaserVision, and Professor of Ophthalmology at the New York University School of Medicine

Dr. Paraskevi Choleva – Paediatric Ophthalmologist at Archbishop Makarios III Hospital in Nicosia, Scientific Collaborator of the Medical School, University of Cyprus

Dr. Serafeim Antonakis – Ophthalmologist and Vitreoretinal Surgeon, Consultant at Southampton University Hospital, Clinical Lecturer and Research Project Supervisor at the University of Southampton

Dr. Avraam Renos, General Practitioner, Clinical Assistant Professor, Medical School, University of Nicosia

Topics to be addressed:

Modern diagnostic techniques

New interventional treatments

Advances in cataract surgery with combined procedures

This event underlines European University Cyprus’s strong commitment to advancing public health in Cyprus and positioning the country as a hub for medical knowledge and innovation in the Eastern Mediterranean. By fostering collaboration between medical experts, institutions, and the community, EUC continues to enhance awareness, prevention, and treatment in ophthalmology.

Event Details

Venue: Cultural Center, European University Cyprus

Date and Time: Saturday, 4 October 2025 | Doors open 09:30 | Event starts 10:00

Admission: ?pen to the public

Language of the event: Greek