Category: Cyprus News Agency

Greek Prime Minister Kyriakos Mitsotakis said on Tuesday there are expectations from the upcoming first meeting between the President of the Republic of Cyprus, Nikos Christodoulides, and the new Turkish Cypriot leader, Tufan Erhrman, reiterating that the two-state solution is rejected by definition.

In an interview with ERTnews, Mitsotakis expressed his satisfaction with the easing of tensions between Greece and Turkey over the past two years, while noting that “obviously, thorny issues remain,” including the Cyprus issue.

“I am very concerned and not happy about the fact that we continue to see statements in favor of the two-state solution in Cyprus, which is rejected by definition, not only by us but also by the entire international community,” the Greek Prime Minister said.

“I certainly have expectations from the first meeting between President Christodoulides and the new Turkish Cypriot leader,” he added.

On the issue of the Greece-Cyprus electricity interconnection and the possibility of foreign investors participating in the project, Mitsotakis said that much greater interest exists from international investors, including the US, for interconnection projects in the Eastern Mediterranean.

“In order to quantify and further expand this interest, the technical data for the Greece-Cyprus electricity interconnection cable needs to be updated,” he pointed out, also mentioning that the Cypriot government agrees on this issue.

Mitsotakis also referred to the importance that the Greek government attaches to the recent agreement on hydrocarbons in the Ionian Sea with ExxonMobil, Energean and Helleniq Energy.

As he said, as a result of this agreement, over the next 18 months there will be an exploratory drilling in the Ionian Sea, which will mark the “first exploratory well for natural gas in our country in 40 years.”

Minister of Agriculture, Rural Development and Environment, Maria Panayiotou, highlighted the discussion on direct payments as one of the most important agenda items of the Agriculture and Fisheries Council, in statements she made on Monday afternoon in Brussels.

“I would like to highlight the discussion we had on direct payments. Direct payments are more than just a financial mechanism. They are the cornerstone of supporting our farmers, supporting social cohesion in rural areas, food production, and food security,” Panayiotou stressed.

She noted that this is why Cyprus has requested adequate funding in the Common Agricultural Policy (CAP) after 2027, “in order to support and fund farmers who produce and contribute to food production.”

Additionally, as the Minister pointed out, the second reason is “for each and every member state to have the flexibility to adapt and design the solutions and plans they propose, the tools at their disposal, so that they can respond to and help solve problems, meet the needs of farmers-both men and women.” She emphasized that “our main concern, our primary focus, is that no farmer is left behind.”

The excellent level and strategic nature of Cyprus-US relations were reaffirmed during a meeting held in Washington, on Monday, between Cyprus’ Foreign Minister, Constantinos Kombos, and his American counterpart, Marco Rubio. The two officials discussed, among others, ways in which the Republic of Cyprus can contribute to the US President’s plan for peace, humanitarian assistance, and reconstruction in Gaza, Cyprus’ Foreign Ministry said in a press release.

According to the press release, Kombos met Rubio on Monday as part of his working visit to the United States. During the meeting, which lasted approximately 35 to 40 minutes, as CNA has learnt, ‘the excellent level and strategic nature of Cyprus-US relations were confirmed.’ The discussion covered bilateral relations and the further deepening of cooperation in the fields of defence and security, including access for the Republic of Cyprus to US defence programmes for the acquisition of military equipment and training, it added. Energy cooperation was also discussed, with a focus on advancing Cyprus’ energy programme with the substantial involvement of US energy companies operating in the Cyprus Exclusive Economic Zone (EEZ), the press release said.

It noted that the two Ministers exchanged views on the next steps of the 3+1 cooperation scheme (Cyprus, Greece, Israel, United States) in the Eastern Mediterranean, including the recent 3+1 meeting for promoting key economic and energy interconnectivity projects. ‘The need to strengthen the region’s energy infrastructure was highlighted, including the promotion of connectivity projects among like-minded partners in the Eastern Mediterranean, with the goal of enhancing stability and prosperity,’ the press release said.

Kombos, it added, also briefed his US counterpart on the priorities of the upcoming Cyprus Presidency of the Council of the European Union during the first half of 2026, while they discussed ways to boost EU-US relations and transatlantic cooperation.

In addition, the Ministers discussed current regional issues, focusing on the situation in the Middle East, the delivery of humanitarian aid to Gaza via the maritime corridor, and ways in which the Republic of Cyprus can contribute to President Trump’s plan for peace, humanitarian support, and reconstruction in Gaza.

The Cyprus issue was also on the agenda. Kombos reiterated the Greek Cypriot side’s commitment to achieving a solution based on a bizonal, bicommunal federation with political equality, as set out in the relevant UN Security Council resolutions. On his part, the US Secretary of State reaffirmed the United States’ support for a solution to the Cyprus problem within the UN framework, the press release 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. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

The Bureau of the European Economic and Social Committee (EESC) is visiting Nicosia on Tuesday and Wednesday for its 743rd meeting, according to a press release by the Secretariat of the Cyprus Presidency of the Council of the EU. This marks the first institutional meeting to take place in Cyprus in the context of the country’s upcoming Presidency of the Council of the European Union, which begins on 1 January 2026.

The EESC Bureau’s proceedings will be hosted at the Presidential Palace.

According to the press release, the programme will open with an address by EESC President Seamus Boland, followed by a speech from Cyprus President, Nikos Christodoulides.

Deputy Minister for European Affairs, Marilena Raouna, will present the expected priorities of Cyprus’ upcoming Presidency of the Council of the EU.

This will be followed by a Plenary Conference titled ‘Water Scarcity and Preparedness’, with Professor Fadi Comair, Director of the Energy, Environment and Water Research Center at the Cyprus Institute, and Durk Krol, Executive Director at Water Europe as speakers.

The press release noted that the European Economic and Social Committee is an advisory body of the EU composed of representatives of employers’ organisations, trade unions, and other stakeholder groups. It issues opinions on EU matters upon request by the European Commission, the Council of the EU, and the European Parliament, and may also issue opinions on its own initiative, acting as a bridge between EU decision-making institutions and the Union’s citizens and businesses.

In this context, and in line with the usual practice of each rotating Presidency of the Council of the EU, the EESC has been asked to prepare 14 opinions on behalf of the upcoming Cypriot Presidency, covering areas of mutual interest and priority, it said.

The Cyprus-US relationship has ‘stability, consistency, and continuity’, Foreign Minister Constantinos Kombos said on Monday after his meeting in Washington with his U.S. counterpart Marco Rubio, noting that they had a ‘constructive’ discussion.

‘We covered a wide range of issues both bilateral and regional, such as Gaza and Syria,’ he said.

Regarding bilateral matters, Kombos said they discussed ‘the progress achieved in relation to the strategic dialogue, the possibility of conducting an interim progress review, as well as a specialised form of discussion at a technical and technocratic level concerning the Middle East.’

The issue of a 3+1 leaders’ meeting (Cyprus, Greece, Israel, United States) with Rubio’s participation on the American side, was also raised, along with energy cooperation, given the presence of U.S. companies in the Cyprus Exclusive Economic Zone and more broadly, in Greece’s EEZ, he noted.

The two Ministers also discussed how the Republic of Cyprus could contribute to President Trump’s plan for Gaza. ‘Cyprus has proven that it can make a complementary contribution to the American effort, both in the humanitarian field and in reconstruction,’ said Kombos.

According to the Minister, the issue of Syria was also discussed namely, ‘how the stability of the system can be supported, as well as the shared interest in protecting minorities, particularly Christians in Syria.’

‘It was a highly productive discussion’ Kombos said, stressing that this relationship ‘has stability, consistency, and continuity.’

He noted that this was his second visit to the State Department within 17 months, noting that, in the meantime, the Cyprus President visited the White House, the strategic dialogue had been signed, and the Republic of Cyprus participated in the Sharm el-Sheikh meeting.

‘This relationship is of particular importance to us; it serves as a compass for our foreign policy, and both sides share the same approach on how to work more intensively to advance and deepen it further,’ Kombos stresses.

The Minister also said that the Cyprus question was raised during the discussion with the U.S. Secretary of State. He noted that Rubio knows the issue from his previous capacity while that the U.S. position regarding the basis of the solution, the need for progress, was reaffirmed, and, the issue of regional stability, which, he said was important to for the U.S. side, ‘since what happens in Cyprus affects broader American strategic planning’. ‘The conclusion of our discussion was encouraging, given that the U.S. is a Permanent Member of the Security Council,’ he added.

The U.S. side also expressed interest in Cyprus’ upcoming presidency of the Council of the European Union, raising specific questions of concern. ‘They referred to issues relating to investment, defence, and the protection of major technology corporations headquartered in the United States, as well as to regulatory frameworks applied by the EU,’ he noted.

‘Cyprus, as a small country assuming the (EU) presidency, sees this as an opportunity to strengthen dialogue and discussion between the EU and the U.S., which at present is not as extensive as it could be. On our part, there is such a will. It is particularly significant that the American side also identifies areas of interest where U.S.- EU interests can converge, provided there is room for dialogue, negotiation, and discussion,’ Kombos concluded.

By June 2026 the latest, the distributed energy storage system with a total capacity of 120 MW, which is currently being implemented, will be operational and will function with full transparency on the basis of the ‘Policy for Management and Participation in the Competitive Electricity Market,’, Minister of Energy, Commerce and Industry, George Papanastasiou, said on Monday during the presentation of the Cyprus Electricity Authority’s (EAC) 2024 annual report.

At the same time, Papanastasiou said that, according to estimates by the Cyprus Transmission System Operator, at least 600 MW of storage capacity will be required by 2030. Citing data for 2023, he noted that energy poverty affected 66,700 households – 17.5% of all households in Cyprus – up from 50,290 households in 2022, or 15.1% of the total, compared to 10.6% in the EU, due to rising energy prices.

He said that in 2023 energy poverty in the EU was assessed at 10.6% based on household survey questionnaires related to how easily a residence can be heated. In Cyprus, according to Papanastasiou, 19.3% of households said that they struggle to heat their homes.

In his speech, the Energy Minister said that the government is working together with the EAC to address daily challenges in the electricity and broader energy sector, with ‘the ultimate goal of ensuring adequate electricity supply, the safe operation of our electrical system, and the reduction of electricity prices, while contributing to green growth and strengthening the country’s competitiveness.’

Referring to some of the challenges faced, the Minister said that these include upgrading the grid and installing storage systems in order to increase the penetration of renewable energy in Cyprus’ electricity system and reduce curtailments of renewable energy production (RES) production, implementing the EAC’s development programme for power generation, including the upgrade of the Dhekelia Power Station, installing additional RES systems by the organization, and the operation of the competitive electricity market.

Papanastasiou praised the EAC’s commitment to carrying out important modernisation projects, such as upgrading and digitising the transmission and distribution networks under its 10-year development plans.

He also referred to the upgrade of the Vasilikos power station, and to the completion of the installation of the new unit that will operate on natural gas, as well as upgrades to the existing units so that they are ready for natural gas combustion.

The Cyprus Electricity Authority is focused on four strategic priorities – tackling climate change, providing affordable electricity, ensuring energy security, and delivering high-quality customer service – EAC Chairman George Petrou said, presenting the organisation’s 2024 activity report.

Petrou stressed that energy storage was ‘key for Cyprus, an isolated electricity system, because it enhances stability, reduces costs and enables full utilisation of green energy.’ He added that the EAC is investing in critical projects that strengthen sustainability, energy efficiency and technological progress.

He noted that the inability to export surplus renewable energy is already leading to curtailments, adding that ‘the solution lies in storage, which acts as a balancing mechanism and provides flexibility to the system.’ To that end, the EAC is moving ahead with large-scale projects, while the Transmission System Operator is installing three storage systems at transmission substations.

Petrou said the utility’s aim was the operation of new photovoltaic parks ‘as quickly as possible.’ Recently, two solar parks, the 12 MW facility in Akrotiri, Limassol, and the 8 MW park in Achera, in Nicosia, were added to the EAC’s generation mix. The cost of energy produced by these parks is around five cents per kilowatt-hour, offering a small but tangible reduction in electricity costs for consumers, he said.

He added that additional solar parks are being planned across Cyprus, with further projects moving through the licensing process, with the goal of significantly increasing the contribution of renewables to the EAC’s energy mix.

The EAC is also taking decisive steps to secure sufficient electricity generation capacity for the coming years, Petrou said.

He also highlighted the EAC’s central role in major national infrastructure projects, including the development of the LNG import terminal, which, he said, was crucial for the country’s energy transition, as well as efforts to address water scarcity through the Vasilikos desalination plant, which supplies 60,000 cubic metres of water daily.

Electric mobility is another priority, he added. The EAC’s e-charge service is expanding a nationwide network of fast and semi-fast chargers. The organisation currently operates 35 dual charging stations, including four fast chargers, with plans for a further 40 stations by the end of 2026, including coverage of mountainous areas, he added.

Finance Minister, Makis Keravnos, expressed on Monday ‘full satisfaction’ with the findings of the European Commission’s Autumn 2025 Economic Forecast for Cyprus, noting, in a written statement that the report clearly confirms the steady progress, resilience and momentum of the country’s economy amid a global environment of geopolitical turbulence.

‘It is particularly encouraging that the European Commission finds that Cyprus’ economic growth remains strong,’ Keravnos said, noting that, according to the Autumn Forecast, the Commission revised its projections for Cyprus’ 2025 growth rate by 0.4 percentage points compared with the Spring Forecast (to 3.4% from 3.0%), and its 2026 forecast by 0.1 percentage points (to 2.6% from 2.5%). ‘This places Cyprus as the third fastest-growing economy in the eurozone,’ he added.

The Commission’s report, ‘confirms the continued confidence of the European institutions in Cyprus’ economy’, he said, adding that this was the result of the government’s ‘consistent economic policy, which lays solid foundations for a sustainable, outward-looking and socially fair development model.’

‘Cyprus is moving forward with stability, planning, responsibility and prudent fiscal management,’ he noted.

The Minister reaffirmed the government’s commitment to accelerating reforms, including the upcoming tax reform, ‘with the aim of boosting incomes, attracting high-quality investment, and building a modern, competitive and resilient economy that creates opportunities and prospects for all citizens’.

In a separate press release, the Ministry of Finance also welcomed the Commission’s Autumn 2025 forecast. ‘The EU’s revised projections, which closely align with the Ministry’s own forecasts, represent yet another vote of confidence in Cyprus’ economy,’ the Ministry said.

The European Commission announced on Monday that the application period for scholarships to study at United World Colleges (UWC) for the academic years 2027-2029 will be open on 18 November 2025 until 11 January 2026, aiming ‘to bring young Cypriots together’.

‘Thanks to a new EU-funded agreement of pound 1.5 million with UWC, 18 deserving students will have the opportunity to participate in the International Baccalaureate diploma programme at UWC schools in Europe, comprising UWC Adriatic (Italy), UWC Red Cross Nordic (Norway), UWC Maastricht (Netherlands), UWC Mostar (Bosnia and Herzegovina), and UWC Robert Bosch College (Germany)’, the notes in an announcement. The selection of scholars will follow UWC’s established criteria, focusing on the applicants’, motivation, commitment, social competence, resilience, personal responsibility, integrity, and intellectual curiosity,” it said.

‘Since its launch in 2019, the EU Scholarship Programme at UWC has awarded 82 scholarships to Greek Cypriot and Turkish Cypriot students, fostering intercommunity dialogue and reconciliation. These scholarships have a profound and lasting impact for the successful students,’ the Commission added.

In addition to scholarships, it said, the EU Scholarship Programme at UWC also facilitates bicommunal youth engagement activities, short courses, and mentorship programmes in Cyprus, promoting intercommunal dialogue and empowering youth by equipping them with leadership and change-making skills. According to the announcement, the UWC’s transformative educational model, which emphasizes peace and intercultural understanding, ‘aligns seamlessly with the European Union’s founding values of human rights, equality, freedom, and the advancement of peace, security, and justice’.

It is noted that the EU Scholarship Programme for Cypriot Youth at UWC is funded through the EU Aid Programme for the Turkish Cypriot community as a reconciliation and confidence-building measure aimed at facilitating the reunification of Cyprus. Since 2006, the EU has allocated EUR 760 million to support projects primarily benefiting the Turkish Cypriot community.

For more information about the scholarship application process and UWC, those interested may visit the UWC Cyprus – EU Scholarship Programme for Cypriot Youth at UWC website.

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

MEETING DATE: 17/11/2025

INDICES BASE VALUES: FTSEMed=5000, OTH

EURO (pound )

TRADED VALUE:

309.399,03

INDEX

VALUE

% DIFF.

VALUE (pound )

FTSE/CySE 20

170,480

-0,410

297.740,050

MAIN MARKET INDEX

229,060

-0,540

163.747,730

INVESTMENT COMPANIES MARKET INDEX

3.145,620

-0,600

48.014,850

CSE GENERAL INDEX

281,130

-0,400

297.740,050

HOTELS INDEX

1.890,780

0,000

0,000

ALTERNATIVE MARKET INDEX

1.871,680

-0,140

145.651,300

The European Commission’s Autumn 2025 Economic Forecast for Cyprus is positive, highlighting robust economic growth of 3.4% in 2025, driven by domestic demand, investment, and service exports. According to the forecast, inflation has decreased to 0.9% in 2025 and is expected to stabilize close to 2% by 2027, while core inflation-excluding energy and food-remains slightly higher. Unemployment has reached a historic low of 4.3%, with employment increasing by 1.6% annually. Public finances remain strong, with a primary surplus of 4.1% of GDP in 2024 and 3.3% in 2025, while public debt is projected to decline from 62.8% in 2024 to 45.7% of GDP by 2027.

The report said that Cyprus’s economic growth remains strong, primarily fueled by domestic demand. Private consumption is expected to gradually decline as real wage growth slows, but investment is projected to strengthen, supported by the completion of Recovery and Resilience Facility (RRF) projects in 2026. Service exports are also expected to remain dynamic.

Specifically, economic growth was measured at 3.2% in the first half of 2025, with total consumption increasing by 6.2% and investment accelerating by 18.4% year-on-year. Net exports contributed positively to growth due to strong trade in information and communication technologies (ICT) and record tourist arrivals.

Regarding overall inflation, it is forecast to remain slightly below 2% in the medium term. Headline inflation dropped sharply in 2025, mainly due to lower energy prices and, to a lesser extent, reduced food prices. This decline reflects the impact of the temporary VAT reduction on energy bills. Headline inflation is projected to fall to 0.9% for 2025 as a whole, before gradually rising to 1.9% by 2027, as the effect of the VAT reduction diminishes and the introduction of ETS2 in 2027, if not delayed, pushes up energy inflation. Core inflation, excluding energy and food, is expected to remain slightly higher due to persistent price pressures in services, linked to strong tourism demand.

Cyprus’s economic momentum is expected to remain sound in the second half of 2025, leading to GDP growth of 3.4% for the entire year. GDP growth is projected to moderate to 2.6% in 2026 and 2.4% in 2027.

Private consumption is expected to remain the main driver of growth, although its momentum will ease as real income growth slows and the inflow of foreign workers, which typically supports household spending, decelerates. This slowdown is expected to be partially offset by stronger investment, supported by the timely implementation of the RRF by 2026 and sustained inflows of foreign direct investment, particularly in real estate activities.

Regarding exports, the Commission estimates that they will also remain strong throughout the forecast period, thanks to positive tourism prospects and dynamic ICT activity. However, the global trade slowdown is negatively impacting the outlook for the shipping sector, particularly in 2026.

Despite a significant surplus in the trade of services, the current account remains in deficit due to profit repatriation by the many foreign companies. The current account deficit is projected to narrow gradually by 2027.

Unemployment in Cyprus is at a historic low, with the Commission estimating that job creation levels are solid, and employment increasing by 1.6% annually in the first half of 2025. Unemployment fell to a historic low of 4.3% during the same period. According to the Commission, employment growth has been supported by significant inflows of foreign workers, but these inflows are expected to gradually moderate as the initial wave of corporate relocations under the so-called “headquartering policies”, designed to attract international companies to Cyprus, comes to an end.

The European Commission assesses that public finances remain in good shape. In 2024, Cyprus recorded a significant surplus in the general government balance of 4.1% of GDP, with revenues growing more dynamically than expenditures. In 2025, the government surplus is projected to remain strong, slightly decreasing to 3.3% of GDP. Favorable economic growth and labor market conditions continue to support strong revenue growth, despite increased spending on support measures and compensation payments following the July 2025 wildfires, as well as VAT reductions for energy and other essential goods. With the RRF entering its final phase, public investment is projected to receive a noticeable boost in 2025 and 2026.

For 2026 and 2027, public finances are forecast to remain favourable, and the government surplus is projected to hold at 3.0% and 3.2% of GDP, respectively. The end of the RRF in 2026 is expected to have a dampening effect on government revenue and expenditure in 2027.

The government debt-to-GDP ratio dropped by more than 8 percentage points to 62.8% at the end of 2024. This trend is projected to continue, with the debt level expected to fall to 56.4% of GDP by the end of 2025. Government debt is projected to further decrease to 51.0% of GDP in 2026 and 45.7% of GDP in 2027.