The European Investment Bank (EIB) is a trusted partner for Cyprus, President of the Republic Nikos Christodoulides has said, noting the Bank’s crucial support both during times of crisis and in the country’s ongoing path of reform and steady economic growth.
Addressing Tuesday the EIB Board Retreat in Limassol, the President also said that Europe must now pursue autonomy across security, the economy and trade, stressing that the European Investment Bank has a central role in turning that vision into reality. He stressed that for Cyprus – the EU’s last divided member state and a bridge between Europe and the Eastern Mediterranean – the Bank’s mission holds particular significance, having long supported the country’s reforms, recovery and growth.
‘Moreover, this ongoing support has complemented our own efforts to build a resilient and forward-looking economy, with great emphasis on reforms. That is our driving force, our vision – reforms that modernize our state, creating accountability, transparency, opportunity. Fulfilling our responsibility to the citizens who put their faith in us to deliver. And we are accountable only to them, to our citizens,’ Christodoulides said.
Despite global turbulence, he added, Cyprus’ economy has shown steady strength. He noted that GDP grew by 3.4% in 2024 and is expected to exceed 3% in 2025. Public debt is set to drop to 58% of GDP by year-end and fall further to 42-43% by 2026, while unemployment has fallen below 4.9%, the lowest since 2008. He also said that the country has secured investment-grade A-level ratings from all major agencies, marking the first time since 2011 it holds such recognition.
‘This is the path we will continue walking as Government: of fiscal responsibility and stability. That is the only path that opens the way for social policies with impact in education, health, housing, social welfare,’ he said.
EIB’s an ‘enduring and steadfast’ partner
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Christodoulides credited the EIB as an enduring and steadfast partner in Cyprus’ growth, with investments of more than pound 5.7 billion making the country the largest per capita beneficiary among EU members. Beyond major infrastructure and energy security, he noted that the Bank has supported SMEs and startups with flexible financing, expert advice, and development assistance.
He cited the Cyprus Entrepreneurship Fund, which expanded financing for small businesses, and the Cyprus Equity Fund, the first public-private fund to provide early-stage capital to startups.
‘Through these projects, and essentially by enhancing the capacity of Cypriot enterprises, backing strategic initiatives, and aligning European priorities with national needs, the EIB has delivered visible benefits that have had a real impact on the everyday lives of our citizens,’ Christodoulides said.
The President noted that Cyprus, as the Union’s southeastern corner and last divided member state under military occupation, has a unique role as both a safe harbor and a bridge between Europe and the complex Eastern Mediterranean region. This, he said, gives added weight to the EIB’s mission in smaller economies like Cyprus.
Cyprus EU Presidency in 2026
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Looking to the first half of 2026, when Cyprus will assume the rotating presidency of the Council of the EU, Christodoulides said the milestone comes at a critical time.
‘A moment of immense responsibility and opportunity lies ahead for Cyprus,’ he said, stressing that the country will act ‘as a genuine honest broker, working in a results-oriented way and in close cooperation with all Member States and EU institutions.’
As he said, the presidency will focus on defense and security, civil protection, migration and border management, water resilience, affordable housing, and competitiveness. Christodoulides also underscored the importance of simplifying EU procedures to enable businesses to thrive.
Christodoulides stressed that the upcoming negotiations on the EU’s long-term budget will be central to Cyprus’s presidency of the Council of the EU in 2026.
He further said that the upcoming negotiations on the EU’s next long-term budget would be a top priority for Cyprus’s presidency in 2026. He noted that the Multiannual Financial Framework must reflect and support the Union’s strategic vision, while underlining that the European Investment Bank is expected to take on a greater role in mobilizing funds and financing the critical investments needed to deliver on the EU’s priorities.
In this context, he underlined that cooperation with the EIB would remain indispensable, to ensure ‘that our goals are not only ambitious in vision but also effective in practice’.
‘Together, we can translate strategic priorities into tangible outcomes, demonstrating the power of cooperation and the shared commitment that underpins the European project. In this respect, we look forward to your support for EU and national priorities, like security and defense, research and innovation etc,’ he said.
A call for EU autonomy and action
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Christodoulides described the EU as standing at ‘a crossroad, at an inflection point.’ He warned of challenges ranging from geopolitical instability to the pressures of green and digital transitions.
‘There is no space or time for hesitation or complacency. Now is the time for decisive urgent action,’ he said.
‘Now is the time for autonomy – from our standing as a global actor and our security to our economy and trade. Autonomy across the board,’ he said, stressing that Europe’s resilience and unity must be strengthened by deepening international partnerships, particularly with the Eastern Mediterranean and the Greater Middle East.
Closing his address, Christodoulides reaffirmed Cyprus’s constructive stance and the importance of collaboration with the EIB on EU and national priorities such as security, defense, research, and innovation. ‘Rest assured that Cyprus will always be part of the solution and never part of the problem,’ he concluded.