Fiscal data on steady trend of containment, Fiscal Council President says

President of the Fiscal Council of Cyprus, Michalis Persianis, has noted that we are in a period in which macroeconomic and fiscal data continue not only to flourish but also remain at a steady trend of containment.

In his remarks in the Council’s Activity Report for 2024, Persianis adds that growth is expected to remain at around 3% and is based on a broad base, with almost all sectors strengthening their activities, while the debt trajectory is outside the risk zone and the downward trend continues, with the goal of reaching levels below 60% of GDP in 2025.

Regarding state revenue, Persianis notes that it is recording continuous increase, to an extent that exceeds what is expected on the basis of inflation and growth, while employment remains high and inflation remains at zero.

Persianis states that while risks are accumulating, the external environment is also becoming increasingly unpredictable. In this context, he notes, Cyprus has two means to address the risks. First, to keep policy options open for when conditions require fiscal interventions and secondly to to actively prepare for those risks that are already visible.

Referring to climate change, he says that natural disasters, the need for water management and the increase in demand for electricity are already recording intensifying trends, while all models predict an acceleration of the phenomena.

‘The inadequacy of infrastructure, with the most painful of them being water, public transport and energy infrastructure, are approaching the limit of crisis and are depriving the executive power of the required options. These will require serious increases in spending and the continued delay is of concern,’ he notes.

Interior Minister highlights affordable housing-faster permits’ process presenting 2026 budget

Strengthening the measures for affordable housing and faster house permits’ process with the aim of increasing the housing stock and supporting the purchasing power of citizens, was announced by the Minister of Interior Constantinos Ioannou at he House Finance Committee, on Monday, where he presented the Ministry’s 2026 budget, amounting to pound 779.7 million.

He said that the budget has a clear social and people-centered orientation with strong development elements, expressing the will of the government to strengthen the real economy, putting emphasis on providing citizens with effective services.

Ioannou noted that the aim for 2026 is to continue reforms and policies aimed at reducing delays and increasing the efficiency of services such as the broad redesign of real estate management procedures and the modernization of the operation of the Department of Lands and Surveys.

Ioannou also told the parliamentarians that a new legislative framework is underway for the protection of state land, with structured procedures and clear criteria.

He also said that within the framework of the fast-track procedure, 1,328 applications for single-family or duplex houses have been examined within the time limit of 40 working days and 253 applications for multi-family buildings within 80 days.

At the same time, he said that an extensive program for the protection and reuse of listed buildings will be implemented in 2026, with the aim of declaring more than 1,000 buildings as listed and operating Preservation Branch offices in all districts.

Replying to questions from MPs the Minister said that permits are now given by the district local government organizations and the Ministry is assisting by assigning staff to help with the workload. A total of 80 employees were hired and measures were taken to simplify procedures.

Regarding the ‘KtiZO’ housing project, Interior Minister explained that its purpose is to provide both financial support and know-how to the beneficiaries, underlining that the speed of implementation depends on the owners themselves as there needs to be an agreement between the tenants.

Asked about the reform of local government, the Minister said that the new Parliament to be formed after the 2026 elections will seek to make improvements.

House President and Japanese Ambassador discuss strengthening of bilateral cooperation

The new Ambassador of Japan to Cyprus, Iwasaki Satoshi, was received on Monday by the President of the House of Representatives, Annita Demetriou, on the occasion of the assumption of his duties. The two officials expressed their shared intention to further strengthen bilateral cooperation in areas of mutual interest.

The House said in a press release that during the meeting the contribution of establishing Embassies in both countries to the further enhancement of relations between the two states was highlighted. In this context, the common will to reinforce bilateral cooperation in areas of mutual interest was underlined, and particular emphasis was placed on the importance of further strengthening dialogue and cooperation between the parliaments of the two countries through enhanced exchanges.

The President of the House expressed sincere appreciation for Japan’s principled stance and steadfast support regarding the Cyprus issue.

On his part, Iwasaki reaffirmed Japan’s unwavering commitment to the international law and his country’s principled position in favour of resolving the Cyprus issue on the basis of a bizonal, bicommunal federation, as provided in the relevant United Nations Security Council resolutions on Cyprus.

Finally, Annita Demetriou expressed the readiness of the House of Representatives to support, in every possible way, the work of the Japanese Ambassador and to contribute to the implementation of initiatives and actions aimed at further deepening relations and cooperation between Cyprus and Japan.

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.

FMs of Cyprus and Israel discuss progress of bilateral relations

Foreign Affairs Minister Constantinos Kombos paid Israel a working visit on Sunday during which he discussed with his Israeli counterpart, Gideon Saar, issues mainly concerning the progress of bilateral relations with an emphasis on energy, defence and investments.

Speaking to CNA, Kombos underlined that Cyprus ‘maintains a strategic relationship with Israel, which covers issues of mutual interest, especially in the fields of energy, defence and trade.’

Regarding trade, he pointed out that ‘one only needs to look at the numbers regarding the mutual flow of investments to the two countries and the continuous development of these relations.’

Kombos said that they discussed about issues concerning the region focusing on the next day in Gaza and the need to implement President Trump’s Plan.

He added that Cyprus’ role as a bridge of cooperation between international partners and operational activities on the ground was highlighted, on the basis of the six proposals submitted by President Christodoulides at the Sharm El-Sheikh Peace Summit.

‘We have common concerns about the way in which some third parties may try to acquire a role, which would not be to the benefit of the wider region,’ Kombos stressed.

They also reviewed the course of the 3+1 scheme with the participation of the United States and discussed the prospects that emerge through the implementation of the India-Middle East-Europe Corridor, as well as the impact of recent regional developments on the security and stability of the Eastern Mediterranean, with particular emphasis on the need to protect civilians and strengthen humanitarian efforts.

The Cypriot Minister’s visit began at the Civil-Military Coordination Center (CMCC) of the Central Command (CENTCOM) of the US Armed Forces in the city of Kiryat Gat, where he was briefed on the actions to support the process of providing humanitarian assistance to civilians in Gaza in the context of the implementation of President Trump’s Plan.

He later on held a tête-à-tête meeting with his counterpart Gideon Saar, followed by a working lunch with the participation of the delegations of the two countries.

Cyprus’ Presidency a “golden opportunity” for Greece-Cyprus’ defence industry, President says

The Cyprus’ Presidency of the Council of the EU is a ‘golden opportunity’ to strengthen the Greek and Cypriot defence industries and to showcase their capabilities, President of the Republic Nikos Christodoulides told the Greek Minister of National Defence, Nikos Dendias, during their meeting at the Presidential Palace on Monday.

According to a press release issued by the Presidency, welcoming Dendias, the President said that “our friendship and cooperation go back many years. Your visit at this time is particularly important, taking into account developments in our region as well as in the EU regarding the SAFE programme and how we can cooperate.’

The President noted that the Cyprus’ Presidency of the EU, which begins in less than 50 days, is a “golden opportunity” to further strengthening the Greek and Cypriot defence industries and highlighting their capabilities.

‘We must see how we can push forward defence and security issues for Cyprus and Greece even further. These are extremely important sectors, taking into account the Turkish occupation and provocations, but also the fact that we are geographically located in an area of particular geostrategic importance,’ he said.

On his part, Nikos Dendias said, among other things, that he and his Cypriot counterpart, Vassilis Palmas, had the opportunity to discuss the further deepening of defence cooperation between the two countries, particularly in matters related to the defence industry and ecosystem of Greece and Cyprus.

He added that the Cypriot Presidency of the Council of the EU will provide “a tremendous opportunity”, noting that he looks forward to deepening bilateral cooperation.

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.

Cyprus and Greece Ministers of Defence discuss SAFE synergies and cooperation

Cyprus’ and Greece’s Defence Ministries will naturally move forward with synergies and cooperation within the framework of the EU SAFE Regulation, the two Ministers, Vassilis Palmas and Nikos Dendias, said on Monday.

In statements to the press after a meeting they had at the Ministry of Defence in Nicosia, Vassilis Palmas said that the meeting was part of their regular contacts on issues concerning the bilateral relations of the two friendly and brotherly countries.

‘We exchanged views on the geopolitical situation in the region, as it is evolving right now,’ he said, adding that they also discussed issues concerning bilateral relations, while focusing mainly on matters related to the EU SAFE Regulation, which concerns strengthening the EU defence industry and reinforcing Europe’s defence.

‘We consider it self-evident, of course, within the framework of SAFE, that the two Ministries should have synergies and cooperation, so that we can further upgrade our defence capability and our defensive shield for the protection of our sovereignty and territorial integrity,’ Palmas said.

Nikos Dendias thanked Vassilis Palmas for the warm welcome, as well as the President of the Republic, Nikos Christodoulides, whom he met afterwards.

‘It is an opportunity, first of all, to exchange views on a rapidly changing but extremely complex geopolitical situation, especially in the Eastern Mediterranean region,’ he said. He added that the two Ministers also explored additional possibilities for cooperation between the Republic of Cyprus and Greece, focusing on the SAFE Regulation, which, as he noted, has a tight timetable.

‘This Regulation, both for the Republic of Cyprus and for Greece, provides an opportunity to deepen our cooperation,’ he stressed.

Responding to a question on whether actions are being taken so that other EU member states will also exercise a veto in the event that Turkey seeks to join SAFE, Dendias said that ‘Vassilis and I are perhaps among the few people in Europe who have actually sat down and read the SAFE Regulation. An extremely complex Regulation, written in the peculiar language of Brussels’ bureaucracy, precisely so that everyone can understand whatever they think it means and express whatever they deem appropriate.’

However, within this context, he said, there are principled values that must be clear. ‘There is a clear commitment by the European Commission on how contracts between the EU and third countries will be submitted for discussion,’ he noted.

As he said, the European Commission itself, through a statement, has committed that these proposals will be put forward to be voted by unanimity, with a common understanding among all member states. ‘This is self-evident, because if someone threatens the EU itself, it is obvious that they cannot participate in the mechanism designed to counter such aggression,’ he said.

Within this framework, he continued, ‘we expect all European countries to align themselves with the self-evident understanding of protecting the European space, not only geographically, but also the European values, democracy, and the European approach to human rights protection.’

President and Lebanese Minister discuss deepening of bilateral energy cooperation

President of the Republic, Nikos Christodoulides, and the Lebanese Minister of Energy, Joseph Saadi, who met on Monday at the Presidential Palace, in Nicosia, discussed about the deepening of bilateral energy cooperation between Cyprus and Lebanon. The meeting was attended by the Minister of Energy, George Papanastasiou.

Discussions focused on Cyprus-Lebanon cooperation on the exchange of know-how in the field of electricity production, the delimitation of maritime borders between the two countries, following the recent decision of the Lebanese Council of Ministers, as well as the energy potential of the Eastern Mediterranean.

According to a press release issued by the Presidency, welcoming the Lebanese Minister of Energy, the President of the Republic said, inter alia, that Lebanon is the closest country to Cyprus, recalling that he visited Beirut shortly after the election of President Aoun.

He added that the two countries cooperate very closely and have excellent relations.

“In view of the Cyprus Presidency of the Council of the EU, we are working hard to achieve positive developments in EU-Lebanon relations. I travelled to Lebanon with the President of the European Commission a year ago, and it was the first visit by a Commission President to Lebanon. We want to see tangible positive developments and are working with other EU member states to start discussions on a comprehensive strategic agreement between the EU and Lebanon,” he noted.

He also said that during their meeting “we will also discuss the possibility of an electricity interconnection; it is very important to have something tangible so that we can work with the EU in this direction for its political and financial support.”

On his part, the Lebanese Minister of Energy expressed his country’s interest in the electrical interconnection and further energy cooperation between Cyprus and Lebanon, the press release said

In statements following the meeting, Saadi said that Lebanon needs to increase the provision of electricity to its economy and its population and do it at lower cost, while at the same time ensuring security of supply.

He added that to this end the Lebanese government is working on many fronts to attract private sector investment into production capacity, conventional and renewable, to ensure the modernisation of the transmission grid and its interconnection to the region, because it makes sense for everyone.

‘Today I was very happy to meet with my counterpart in Cyprus, to discuss ways to cooperate in terms of electricity and interconnection, and we also agreed to establish working technical groups to pursue the initiative’, he noted.

Asked if these plans require the ratification of the maritime border agreement by the Lebanese parliament in advance, Saadi said that the Lebanese Council of Ministers has approved the latest border delimitation and according to the information he has, the President of Lebanon will be signing this in the coming weeks directly, concluding this particular chapter.

‘My information is that the President has the authority to go ahead and sign it or have one of the ministers sign it,’ he concluded.

For his part, Papanastasiou said that the visit of the Lebanese Minister of Energy to Cyprus is the result of contacts between President Christodoulides and President Aoun.

“The two countries have developed their relationship. Let us just remember that President Christodoulides was the first to visit the country as soon as President Aoun took office, and this visit is a continuation of the positions taken by the two Presidents,” he further explained.

He added that the Lebanese Minister of Energy essentially came with some opinions and ideas for cooperation between the two countries so that Lebanon can develop its electricity networks, but also with a view to facilitate some kind of exchange of know-how, mostly from Cyprus, so that Lebanon can achieve autonomy in terms of electricity.

“You understand that, beyond the issue of electricity, we also covered the issues of the exclusive economic zone. It is very positive that there is now an agreed border. I understand from the Minister that President Aoun may sign this decree to formalize this arrangement. So you understand that these issues also play an important role in relations between the two countries, because hydrocarbons can be found everywhere, even on borders, and in the next stage there will have to be a joint exploitation agreement,” he noted.

On the electricity issue, Papanastasiou said that Lebanon is facing serious problems related to production itself, which is unstable and mainly conventional, and at the moment, it is trying with help from European banks and the World Bank, to create an environment that will attract private investment to Lebanon.

“The Lebanese state would certainly like to have their contribution to these arrangements with private individuals, so we will provide whatever knowledge we have in this area,” he added.

Asked about the remaining steps by the Cypriot side for the demarcation agreement to be ratified by both states, the Minister said that once the agreement has been concluded, it is up to President Christodoulides to designate the person who will sign these agreements. “I believe that even with a decree, without having to go through the Parliament, and I am saying this with reservation, these agreements can be signed by a decision of the President of the Republic,” he noted.

Asked if there had been any developments that have brought the EastMed pipeline back on track by the Israeli side, Papanastasiou said that the energy potential of the Eastern Mediterranean is now attracting the attention of many.

“You understand that natural gas, which is located in our exclusive economic zone, can be used as a supplement to the pipelines located in the vertical corridor, and the vertical corridor starts in Alexandroupolis and essentially branches out through Bulgaria, Romania, and Hungary to Ukraine,” he went on to explain.

“So the 3+1 scheme and the Americans’ interest was primarily in this particular vertical corridor, but the Eastern Mediterranean is a point that essentially has this energy potential. Soon we will also have natural gas produced within our own exclusive economic zone. Moreover, Israel has the large Leviathan field and other smaller fields, and so Israel says that there is interest in connecting its natural gas network with the country that makes the most sense, which is essentially Cyprus,” he pointed out.

“This does not mean a revival of EastMed, but it could mean any other connection of Israel’s natural gas network with Cyprus. Of course, Israel has interconnections with pipelines that connect Egypt, these are land-based, and Israel already supplies Egypt and Jordan with natural gas,” the Minister concluded.

EFCA role is crucial, say Commissioner Kadis and Minister of Agriculture from Limassol

European Commissioner for Fisheries and Oceans, Costas Kadis, highlighted the role of the European Fisheries Control Agency in fisheries management and combatting, in his address at an event celebrating the agency’s 20th anniversary held at the Limassol port on Monday. Minister of Agriculture, Maria Panayiotou said that the 20th anniversary of the EFCA is an “important milestone.”

The event, also attended by the Executive Director of the EFCA, Susan Steele, was held on board the EFCA patrol vessel “Ocean Sentinel,” which operates in the Mediterranean Sea and docked at the DP World Limassol terminal.

According to Kadis, these patrol vessels are the symbols of mutual trust and the EU’s unwavering commitment to safeguarding our marine resources through Joint Deployment Plans under the Common Fisheries Policy (CFP).

He also recalled the patrol boat’s participation in a search and rescue operation south of Crete last week and the rescue of migrants in danger, thanking the EFCA crew and staff “for their professionalism and for the effective cooperation with the Greek national authorities that made this operation possible”.

Reflecting on the EFCA’s progress over the last two decades, he said that ‘we see an agency that has profoundly influenced fisheries governance across Europe. It has played a vital role in promoting common standards for control, inspection and surveillance under the European Common Fisheries Policy. ”

“The EFCA’s vigilance in the Mediterranean has played a critical role in combatting illegal, unreported, and unregulated (IUU) fishing, especially from third countries, thereby greatly contributing to the sustainability of vital marine ecosystems,” he added.

Among other things, Commissioner Kadis referred to two “important initiatives” related to the EFCA ‘s work, the first being the implementation of the revised fisheries Control Regulation, which advances the digital transition of fisheries control and further strengthens EFCA’s role.

“Secondly, we are focusing on enhancing international fisheries management in the Mediterranean through the GFCM, aiming to ensure a level playing field among all the Mediterranean countries and foster a culture of compliance,” he continued, pointing out that this supports sustainable fisheries, prevents illegal practices, and establishes robust fisheries governance in the region.

In this context, Kadis said that an initiative to combat illegal, unreported, and unregulated fishing has been included in the recently adopted Pact for the Mediterranean and pointed out that “EFCA will have an important role to play in the implementation of this initiative”.

Commissioner Kadis also made special reference to the actions that will be highlighted during the Cyprus Presidency of the Council of the EU in the first half of 2026, such as the organization of European Maritime Days in Limassol, the adoption of the European initiative for ocean and sea monitoring, the presentation of the European strategy for islands and coastal communities, the high-level conference on sustainable fisheries and aquaculture in the Mediterranean, with the participation of third countries in the region, and the presentation of the results of the Common Fisheries Policy evaluation.

Expressing his confidence in the success of the Cyprus Presidency, Kadis said he looked forward to close cooperation between the Commission and the Cyprus Presidency in promoting priorities relating to fisheries and the ocean.

For her part, the Minister of Agriculture expressed her delight that Cyprus had been chosen to celebrate the 20th anniversary of the EFCA, noting that this “underlines our country’s strategic role in protecting Europe’s marine resources and ensuring their sustainable management.”

“The presence of the EFCA patrol vessel, Ocean Sentinel, in Cyprus reinforces the message of our joint effort to combat illegal, unreported, and unregulated fishing and protect marine ecosystems,” she said, adding that “this vessel symbolises Europe’s action, surveillance and commitment to sustainable fisheries.”

In addition, she stressed that Cyprus, through the Ministry’s Department of Fisheries and Marine Research, is actively participating and will continue to strengthen its cooperation with the EFCA, aiming to further strengthen control mechanisms, the use of technology, and the protection of marine resources, “so that we can ensure a clean, healthy, and productive marine environment for future generations.”

Panayiotou also said that the 20th anniversary of the EFCA is an important milestone for the European Union and demonstrates what we can achieve through cooperation, solidarity, and our commitment to responsible and fair fishing.

In her address, EFCA Executive Director Susan Steele said that sustainability of fisheries in the Mediterranean Sea that is shared with non-EU countries, is vital to the EU, and that the agency has contributed to the implementation of international regulations established by the General Fisheries Commission for the Mediterranean (GFCM) and the International Commission for the Conservation of Atlantic Tunas (ICCAT).

Among other things, she mentioned that in 2024, 33,360 inspections were carried out under the Mediterranean plan, while in 2025 inspections continue to be carried out smoothly with very good participation by member states.

She also stressed that the EFCA’s involvement in projects across Africa and soon in the Indian Ocean is effective in strengthening the fight against illegal fishing, and that demand for EFCA’s support is growing year by year.

Energy Ministers of Cyprus and Lebanon discuss strengthening cooperation

Minister of Energy, Commerce and Industry, George Papanastasiou held a meeting on Monday in Nicosia with Minister of Energy and Water of Lebanon Joseph Saadi focusing on ways to strengthen energy cooperation between the two states.

Saadi’s working visit to Cyprus takes place following the discussions that began last July, at the Presidential Palace, in Nicosia, in the context of the meeting between the Presidents of Cyprus and Lebanon, Nikos Christodoulides and Joseph Aoun, a press release by the Ministry says.

During their meeting, the two Ministers exchanged views on further deepening bilateral cooperation in the energy sector, focusing on strengthening energy security and developing electricity infrastructure.

Among other things, it was agreed that Cyprus will provide technical assistance and know-how to Lebanon for the modernisation of electricity transmission and distribution networks, as well as improving the efficiency of the relevant infrastructure and to this end, it was decided to establish technical teams.

The Lebanese Minister was also received by President of the Republic Nikos Christodoulides.

The meeting of the two Ministers was attended by the Ambassador of the Republic of Cyprus to Lebanon, Maria Hadjitheodosiou, the member of the Board of the Electricity Regulatory Authority of Lebanon, Dr. Daniel Geha, as well as the Director General, Marios Panayides, and the Directors of the Energy and Hydrocarbon Services of the Ministry of Energy, Commerce and Industry, Charalambos Roussos and Stelios Nikolaides.