Category: Cyprus News Agency

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (A)

FOR THE PERIOD FROM 0600 13/10/2025 UNTIL 0600 14/10/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1015hPa (hectopascal)

Weak low pressure is affecting the area. The weather will be mainly fine, but locally increased cloud coverage will be present at times.

Visibility: Good

Sea surface temperature: 26°C

Warnings: NIL

AREA PERIOD WIND STATE OF SEA

West Coast

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

Afternoon South to Southwest 3 to 4, later Southwest to Northwest Slight, later Smooth to Slight

Night Southwest to Northwest 3, soon near the coast North to Northeast Smooth to Slight

South Coast

Morning Northwest to Northeast 3 to 4, gradually Northeast to East Smooth to Slight

Afternoon Southeast to Southwest 3 to 4 Smooth to Slight

Night Northwest to North 3, initially Southwest to Northwest Smooth to Slight

East Coast

Morning Northeast to East 3 to 4, later 3 Slight, later Smooth to Slight

Afternoon Northeast to Southeast 3 to 4, later Southeast to Southwest 3 Smooth to Slight

Night Southwest 3, gradually West to Northwest Smooth to Slight

North Coast

Morning Northeast to Southeast 3 to 4, locally Southeast to Southwest Slight

Afternoon Southwest to Northwest 3 to 4, locally at first Northwest to Northeast 3 Slight

Night Southeast to Southwest 3, locally at first Southwest to West Smooth to Slight

House of Representatives President Annita Demetriou expressed on Monday the hope that Turkey will cooperate for the resumption of substantive talks to reach a solution that reunites Cyprus.

Demetriou, was speaking during a meeting she had with a delegation of officials from various countries who are in Cyprus to attend the anti-occupation events ‘Morfou Remembrance Days’, a House of Representatives press release issued here today says.

The delegation includes MPs from Greece, the United Kingdom and Slovenia, as well as mayors, deputy mayors and municipal councilors from Greece, Serbia, Slovenia and Malta. The delegation was accompanied by the Mayor of Morphou, Viktoras Hadjiavraam, and members of the Municipal Council of the occupied Municipality.

The press release notes that the House President expressed “gratitude for the presence of foreign dignitaries at the events in the occupied municipality of Morphou and for their steadfast support for the struggle of the Morphou people for justice and return’.

‘Regarding the Cyprus problem, Demetriou expressed hope that Turkey will abandon its unacceptable rhetoric on the ‘two-state’ solution and will cooperate towards the resumption of substantive talks to reach a solution that reunites Cyprus, in accordance with international law and the relevant UN Resolutions,’ it adds.

She underlined the importance of joining forces to defend international legitimacy and justice in the case of Cyprus as well.

“Five decades, she stressed, is a very long time that the Cypriot people have been suffering from violations of fundamental human rights as a result of the Turkish invasion and continued occupation of part of the territory of the Republic of Cyprus’, the press release reads. ‘In this regard, the President of the Parliament pointed out that Turkish provocations on the territory and in the Exclusive Economic Zone of the Republic of Cyprus are a daily phenomenon’, it says.

Annita Demetriou made special reference to the ongoing illegal detention by the occupying regime of the five Greek Cypriots displaced on the basis of non-existent charges, in retaliation for the prosecution by the Republic of Cyprus of foreign usurpers of Greek Cypriot property. In particular, she noted the resolution recently adopted by the European Parliament condemning the illegal detention and requested the assistance of the participating officials for their immediate release, the press release adds.

‘With regard to developments in the Middle East, Demetriou expressed the hope that the agreement reached on Gaza will be implemented and will lead to a definitive solution to the Israeli-Palestinian conflict, as a tangible example, as she said, of the fact that there are no conflicts that cannot be resolved,’ it noted.

“On their part, the foreign officials expressed hope that a solution to the Cyprus problem will be reached and expressed their willingness to contribute to putting an end to the suffering experienced by the five Greek Cypriot displaced persons who are illegally detained in the occupied territories,” the press release concludes.

President of Cyprus, Nikos Christodoulides, departs today for Sharm el-Sheikh, Egypt, following an invitation by the US President and the President of Egypt, to attend the signing ceremony of the agreement for a ceasefire in Gaza and the release of the hostages.

According to a written statement by Government Spokesman Konstantinos Letymbiotis, the participation of the Republic of Cyprus in the Sharm el-Sheikh Peace Summit constitutes a clear recognition of Cyprus’ upgraded role as a reliable interlocutor and a bridge of cooperation between Europe and the Middle East.

The Spokesman notes that the agreement for Gaza is a historic step towards ending a tragedy that has shocked humanity and restores hope for peace and stability in the Middle East.

The heads of state and government will be welcomed by President of Egypt, Abdel Fattah al-Sisi, and at 15:00 a family photo will follow.

The signing ceremony of the Sharm el-Sheikh Agreement to End the War in Gaza will take place five minutes later, while at 15:15, the Summit will begin with the opening remarks of the President of Egypt and the intervention of the US President.

“The Republic of Cyprus is among the European states that were jointly invited by President Trump and President Sisi to attend the ceremony. This event confirms the international appreciation for the contribution of Cyprus to regional humanitarian and diplomatic initiatives, in particular through the “Amalthea” Initiative,” the Spokesman stresses, referring to the humanitarian aid sea corridor to Gaza, an initiative by the Republic of Cyprus.

He adds that President Christodoulides’ presence at the Summit underlines the responsible and coherent foreign policy of the Republic of Cyprus, which has strengthened the country’s diplomatic footprint internationally, through the building of relationships of trust.

The Spokesman also refers to the EU, noting the importance of its role both as regards the implementation of the agreement as well as the next phase of the humanitarian and development support for Gaza.

Cyprus, he points out, due to its geographical proximity and operational capabilities, can act as a natural bridge for European action in the region, especially in view of the Cypriot Presidency of the Council of the EU in 2026.

The ceremony will be attended, among others, by the President of the United States, the President of Egypt, the leaders of Qatar, Jordan, the United Arab Emirates, Saudi Arabia, the United Kingdom, France, Greece, Germany, Italy, India, Pakistan, Indonesia, as well as the President of the European Council, the UN Secretary-General and the General Secretary of the Arab League.

The President of the Republic will be accompanied by Minister of Foreign Affairs Constantinos Kombos, the Government Spokesman, Deputy Minister for European Affairs Marilena Raouna, Director of the President’s Diplomatic Office Doros Venezis and other officials.

The European Commission announced on Monday the launch of AI Factories Antennas in seven member states, including Cyprus. The member states mentioned in the Commission’s announcement are Belgium, Cyprus, Hungary, Ireland, Latvia, Malta, and Slovakia. Additionally, partner countries such as Iceland, Moldova, Switzerland, the United Kingdom, North Macedonia, and Serbia will host these centres.

According to the Commission’s announcement, these new centres will work closely with existing AI Factories, providing national AI communities with secure remote access to state-of-the-art, AI-optimized supercomputers. Fully integrated into the EuroHPC Joint Undertaking ecosystem, the centres aim to expand access to AI talent, infrastructure, and innovation across Europe.

Last Friday, the Commission also announced a major expansion of Europe’s AI infrastructure, adding six new AI Factories to the existing network, bringing the total to 19 centers across 16 Member States.

During her visit to the Western Balkans, European Commission President Ursula von der Leyen announced today the new centers in Serbia and North Macedonia, giving companies in the region access to Europe’s AI infrastructure.

The announcement is part of the Commission’s AI Continent Action Plan and complements the EU’s investments in future AI Gigafactories-large-scale facilities dedicated to developing and training advanced AI models and systems. It also aligns with the Apply AI Strategy, which aims to accelerate the adoption of artificial intelligence across Europe’s economy and public sector.

Bank of Cyprus announced the launch of the ‘IBU India Hub’, a new strategic initiative aiming to enhance its service offering and specialization to businesses and individuals connected to India.

“This is an important step towards strengthening our international presence and leveraging new opportunities. IBU India Hub is a dedicated service unit designed to meet the needs of Indian businesses and professionals establishing their presence in Cyprus”, a press release reads.

The India Hub will focus on two main pillars: specialisation on service offering to customers related to India and promoting Cyprus as an attractive destination for Indian entrepreneurs and High Net-Worth Individuals (HNWIs)

A total of 224 turtle nests were recorded on beaches within the Sovereign Base Areas this year to reinforce the success of long-term conservation efforts, a press release by the SBAs says.

This milestone, it adds, was achieved between May and October and reflects over two decades of committed, science-led protection of endangered Green (Chelonia mydas) and Loggerhead (Caretta caretta) turtles.

“The SBAs apply a ‘minimum-intervention’ conservation protocol which focuses on preserving natural habitats, limiting human interference and enforcing protective legislation under the EU-aligned Protection and Management of Nature and Wildlife Ordinance. Offenders face fines of up to pound 17,000 and imprisonment of up to three years for disturbing nests or turtles” it notes.

Daily patrols, it continues, the use of aluminium nest cages to deter predators and strict regulations on beach activities form the backbone of the conservation programme and are largely credited for the increase in nests.

Senior Policy and Enforcement Officer at the SBAs Environment Department, Alexia Perdiou, said that ‘what we are seeing today is the result of consistent, science-based protection measures that began more than two decades ago.’

British and Cypriot volunteers living within the SBAs and Republic of Cyprus have been another factor in the success, alongside the close working relationship with Terra Cypria, an NGO that coordinates volunteer efforts along Lady’s Mile beach, the press release says.

As nesting season draws to a close, the SBAs reaffirm their commitment to safeguarding one of the Mediterranean’s most important turtle nesting habitats, ensuring that future generations of turtles continue to return to these protected shores, the press release concludes.

Commission finds State aid rules on guarantees still relevant but can be updated

The European Commission has found that the State aid rules on guarantees are still relevant as they increase predictability and legal certainty, but that some improvements and simplification are necessary. In a Staff Working Document (‘SWD’) published today, the Commission finds that there can be improvements regarding estimating aid amounts, complexity for SMEs, and passing-on of risk benefits.

The SWD summarises the findings of its evaluation of the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees (‘Guarantee Notice’), which describes how the Commission assesses State guarantees on loans and other financial instruments. Launched in August 2022, the aim of the evaluation was to assess whether the Guarantee Notice, which has not been revised since 2008, remains ‘fit for purpose’ and to identify any existing shortcomings as well as any scope for improvement and simplification.

As part of the evaluation, the Commission gathered evidence to understand how the Guarantee Notice has functioned since its adoption. This evidence includes feedback obtained from a public consultation and a targeted consultation, a workshop with bodies that administer and grant guarantees, as well as information provided by Member States. The Commission has also commissioned an external study conducted by a consortium of independent experts. The final report of the external study has also been published today.

Main findings of the evaluation

The evidence gathered in the evaluation has shown the following:

The Guarantee Notice has a clear added value, as it provides a framework within which the Commission can approve guarantee methodologies developed by Member States. The Guarantee Notice has therefore increased predictability and legal certainty and ensured a level playing field between Member States.

The Guarantee Notice remains relevant as it describes the conditions for ensuring that a State guarantee is awarded on market terms and hence is free of aid. The continued relevance of the Guarantee Notice is also clear from the increasing number of Member States’ (pre-)notifications of guarantee methodologies.

The evaluation also shows that the Guarantee Notice could be improved in the following specific areas:

Due to developments in the financial markets, the evolution of interest rates, and the changes in capital requirements applicable to lenders since 2008, the implementation of the Guarantee Notice may result in an underestimation of the aid amount (i.e. the premium charged for a State guarantee may be too low). However, for the simplified approach that can be applied for State guarantees to smaller companies (the so-called ‘safe harbour option’), there may be an overestimation of the aid amount (i.e. the premium charged may be too high), especially for State guarantees targeting riskier SMEs.

It may be the case that lenders do not fully pass through to borrowers the risk-reduction benefits they obtain through the State’s guarantees, although this effect is insufficient for lenders to achieve any statistically significant aggregate gains.

Compliance with the provisions of the Guarantee Notice can be complex and costly, especially for smaller measures and smaller Member States. In addition, there is insufficient availability of reliable data on approved guarantee measures, which demonstrates that the reporting framework of the Guarantee Notice is not functioning as intended. This could be due to the costs involved.

The Guarantee Notice contains elements that are incoherent with the broader State aid framework. Most notably, there are some inconsistencies over the use of market benchmarks and the mechanisms for ruling out aid to lenders, which are both established under the Commission Notice on the notion of State aid as referred to in Article 107(1) TFEU (‘Notice on the Notion of Aid’).

Next steps

The Commission intends to launch a review of the Guarantee Notice in the first quarter of 2026 with the aim to address the issues identified in the evaluation. Stakeholders will have the possibility to comment on the call for evidence which will be published for feedback. The revision is currently estimated to be finalised by June 2027.

Background

To ensure that a State guarantee involves no aid, the guarantee premium paid to the State should be in line with what a market operator would expect to receive as remuneration for that guarantee under normal market conditions. The Commission’s market conformity assessments therefore focus on whether the transaction’s compliance with market conditions can be directly established through transaction-specific market data or, in cases where such data is unavailable, whether other methods could be used.

The most direct way to rule out aid is for the State to set the guarantee premiums equivalent to those charged by private operators. If there is no equivalent transaction, market conformity may instead be established using market benchmarks from comparable market transactions on that company or on a sample of comparable companies. In practical terms, most of the Commission’s assessments of guarantee measures focus on a situation where the State acts alone, and where no reliable or consistent market benchmarks exist. In those cases, the Member States may develop their own methodologies to calculate market proxies for the guarantee premium. The Guarantee Notice sets out conditions for ruling out aid. The Guarantee Notice also helps Member States set up measures involving an aid element, by providing conditions on how to accurately calculate the aid amount in the State guarantee. Under the Guarantee Notice, Member States can, subject to the Commission’s approval, set up methodologies that achieve market conformity by taking into account the specific risk and cost elements that are typically considered by market operators. Simplified options, including a safe-harbour option, are also provided to for small and medium-sized enterprises (SMEs).

For More Information

More information on the Guarantee Notice and its evaluation is available on the Commission’s competition website and on the dedicated Guarantee Notice evaluation webpage.

Quote(s)

Our evaluation shows that the Guarantee Notice remains a useful tool to help Member States provide guarantees in line with EU competition rules. At the same time, financial markets have evolved and we identified several areas where it should be updated to reflect market developments and simplified to reduce complexity. We will now work to address these issues to ensure the rules remain clear, consistent, and fit for today’s economy.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition

Joint press release: 23rd EU Week of Regions and Cities showcases cohesion policy’s impact

Today, the Executive Vice-President for Cohesion and Reforms, Raffaele Fitto, and the President of the Committee of the Regions, Kata Ttto, launched the 23rd European Week of Regions and Cities.

Under the motto ‘Shaping tomorrow, together,’ this three-day event brings together 6,500 participants from all over the EU, including policymakers, practitioners, project promoters, civil society, and researchers. ‘Cohesion and Growth for the Future,’ ‘Right to Stay: Unlocking the Potential of Every Territory,’ and ‘Cities Building Tomorrow’ are the three focal topics of the week’s over 200 sessions.

Executive Vice-President for Cohesion and Reform Raffaele Fitto said: ‘The European Week of Regions and Cities offers a great opportunity for dialogue on the most important issues for our citizens. Representatives from all over the European Union give us the possibility to work on tailor-made solutions and ensure a place-based approach. Cooperation and partnership are key for the success of cohesion policy. We are committed to improve the lives of our citizens, reducing disparities and promoting territorial development in all regions.’

President of the Committee of the Regions, Kata Ttto said: ‘The European Week of Regions and Cities provides a unique platform for all those who work every day to make Europe stronger on the inside, thanks to EU’s cohesion policy. Facing multiple crises, regions and cities invest cohesion funds to stabilise and innovate regional economies, counter industrial decline, fight poverty and increase our communities’ preparedness and resilience. The European Commission is our crucial partner in this endeavor and we must preserve this strategic, daily cooperation in the future, as regional and local leadership can make a difference for the EU to achieve its objectives, including on new priorities as internal safety and international competitiveness.’

Cohesion policy: A proven catalyst for progress

Discussions will be framed by three evaluation reports published today by the Commission on the 2014-2020 cohesion programming, the 2021-2027 mid-term review and the Covid crisis repair and recovery fund REACT-EU. These evaluations offer concrete evidence of the policy’s achievements and impacts despite the numerous challenges of the past years:

In 2014-2020, cohesion policy supported over 2.5 million SMEs, the creation of 370,000 jobs and childcare facilities for 24 million children.

Over pound 66 billion were invested in climate-related projects, while the EU’s capacity for renewable energy production increased by more than 6,000 Megawatts, and 8 million households got access to broadband.

Cohesion policy contributed to boosting the EUs GDP by 0.6%, as well as job growth and mitigation of regional disparities.

The evaluations show that to maximize effectiveness, the policy must be supported by robust governance, strong administrative capability, and a conducive economic and business environment.

Advancing towards a modern and adaptive cohesion policy

Cohesion policy’s recently approved mid-term review increased flexibility and simplicity by allowing Member States and regions to reallocate funds towards strategic priorities such as competitiveness, defence, affordable housing, water resilience, and energy transition. It also aligned with the objectives of the ‘Strategic Technologies for Europe Platform’, which has already supported investments over pound 12.2 billion in critical technologies, including clean tech, deep tech, and biotech.

Unlocking every territory’s unique potential

Addressing regional and social disparities remains central to the EU’s agenda to ensure that, irrespective of location, citizens have the right to remain and grow within their communities. Through 2021-2027, cohesion policy has and will continue to provide substantial support to that end, including pound 7.2 billion for healthcare and long-term care, pound 5.6 billion for education and training, pound 7.5 billion for housing, and pound 40.5 billion for enhanced connectivity and access to efficient transport systems.

A new EU Agenda for Cities

The Commission has also released the ‘EU Social Progress in Cities and Urban Areas’ study, highlighting both opportunities and challenges in areas such as affordable housing and sustainable mobility. To address these challenges, a new EU Agenda for Cities is set for adoption later this year.

Background

The European Week of Regions and Cities, co-organised by the European Commission and the European Committee of the Regions, is the biggest Brussels-based event dedicated to cohesion Policy.

The programme highlights include the REGIOSTARS Awards celebrating the excellence in EU-funded projects in EU regions and the Megalizzi-Niedzelski prize for aspiring journalists showing a strong attachment to EU values.

More information

European Week of Regions and Cities website

Quote(s)

The European Week of Regions and Cities offers a great opportunity for dialogue on the most important issues for our citizens. Representatives from all over the European Union give us the possibility to work on tailor-made solutions and ensure a place-based approach. Cooperation and partnership are key for the success of Cohesion policy. We are committed to improve the lives of our citizens, reducing disparities and promoting territorial development in all regions.

Raffaele Fitto, Executive Vice-President for Cohesion and Reforms

The European Week of Regions and Cities provides a unique platform for all those who work every day to make Europe stronger on the inside, thanks to EU’s cohesion policy. Facing multiple crises, regions and cities invest cohesion funds to stabilise and innovate regional economies, counter industrial decline, fight poverty and increase our communities’ preparedness and resilience. The European Commission is our crucial partner in this endeavor and we must preserve this strategic, daily cooperation in the future, as regional and local leadership can make a difference for the EU to achieve its objectives, including on new priorities as internal safety and international competitiveness.

Kata Ttto, President of the Committee of the Regions

Statement by President von der Leyen on the release of hostages and on the agreement ending the war in Gaza

The return of the Israeli hostages is a moment of pure joy for those families.

And a moment of relief for the entire world.

It means that a page can be turned. A new chapter can begin.

Europe fully supports the peace plan brokered by the United States, Qatar, Egypt, and Trkiye.

The finalisation of the agreement ending the war today in Sharm el-Sheikh will be a historical milestone.

We stand ready to contribute to its success with all tools at our disposal.

In particular, by providing support on governance and for the reform of the Palestinian Authority.

We will be an active force within the Palestinian Donors Group. And we will provide EU funding for the reconstruction of Gaza.

Statement by President von der Leyen at the joint press conference with Albanian Prime Minister Rama

Dear Edi,

What a pleasure to be back in Albania and begin my traditional annual tour of the Western Balkans in Tirana.

My first message is very clear: Albania is on the right track towards the European Union. You have come a long way, you have made progress. And I want to emphasise that there has been a stunning and outstanding record speed acceleration in the last three to four years. Five of six negotiating clusters are already open. We plan to open the last one this autumn. I know the personal effort you, Prime Minister, and your team, have invested in this journey. Your goal is to close negotiations by 2027. This is ambitious but we like ambition. And let me assure you: we will be with you every step of the way.

Because the geopolitical momentum is now. Russia’s aggression against Ukraine has reshaped our continent. Every European nation must choose its place. Albania has made its choice, very clearly. You are fully aligned with the European Union’s foreign and security policy. Together we are acting as one.

My third message is that getting closer is not only about geopolitics. It is also smart business. We will discuss this at the investment conference later today. Two years ago, we launched the Growth Plan for the Western Balkans. The principle is very straightforward. Your economy gains access to our Single Market and new EU investments. In exchange, you deliver on key reforms. This is how you get a level playing field with the EU. The door of areas of our Single Market is open to your companies and our companies gain a bigger common market. Everybody wins.

The Growth Plan has the potential to double the economy of the Western Balkans in this decade. And it is already delivering. Let me give you three precise examples. First, you have made strong progress in key reforms. Thanks to this, I am glad to announce the disbursement of nearly EUR 100 million. Now it is about implementation and you I know you are well on track. This is how you can get all the money from your Growth Plan. We are talking about almost one billion. Second, the Single Euro Payments Area, SEPA. Two years ago, we first spoke about Albania joining the SEPA. At that time, this looked as an extremely ambitious and challenging project. But you have made it happen in record time. Since last week, transfers of money between Albania and the EU are safer and especially much, much cheaper. A big advantage for the citizens and the companies. My third example is roaming. In 2023 here in Tirana, we achieved a landmark agreement with operators. You remember that. Next year, we will abolish roaming charges between Albania and the EU. This is good for business, good for tourism, and especially good for bringing our people together.

Dear Edi,

My final message is this. Perhaps the strongest case for enlargement is not economic or geopolitical. It is the will of the people. Albanians want Europe. A recent poll shows that if a referendum were held today, 92% of Albanians would vote for EU membership. And across our continent, young Europeans are with us and with you. Two-thirds of those aged 15 to 40 support enlargement. This is the clearest signal of all. Our young generations want to live in a stronger, safer, united European Union.

So dear Edi, I wish you every success as you continue on your EU path. You can count on me to support you every step of the way.

Cyprus President Nikos Christodoulides presented on Monday Nicosia’s initiative relating to security, the reconstruction of Gaza and the humanitarian sector during his contacts at the Gaza Summit held in Sharm el-Sheikh.

In his statements after the Peace Summit in Sharm el-Sheikh, President Christodoulides said that the proposal was currently in progress and is to be formulated, ‘with the sole aim of doing everything we can, as far as the Republic of Cyprus is concerned, to ensure the implementation of the first phase of the agreement’.

According to an announcement by the Presidency, President Christodoulides said in his statements, that, taking into account ‘the excellent relations’ of the Republic of Cyprus with all neighbouring states, and the fact that the country is the EU member state in the region, as well as Cyprus’ upcoming EU Presidency, ‘just as we did in October 2023 in Paris, when we first presented our initiative on a humanitarian corridor, today, during our contacts, we informed and presented three areas in which the Republic of Cyprus can develop specific initiatives, six in number, on the basis of the US President’s plan.’

President Christodoulides said he briefed the President of the European Commission on Sunday on Cyprus’ initiative, noting that ‘the Commission’s contribution is of crucial importance’ as well as state leaders with whom he has communicated within the last 24 hours.

He reiterated that it is an initiative that concerns six specific proposals in three areas: security, reconstruction and the humanitarian sector, ‘always in relation to the plan of the US President’.

The prospects for the implementation of the ceasefire agreement in Gaza, as well as the role that Cyprus and Jordan can play in regional stability and reconstruction, were discussed by President, Nikos Christodoulides, and King of Jordan Abdullah, on the sidelines of the Gaza Summit taking place in Sharm el-Sheikh.

According to a post on X by Government Spokesperson, Konstantinos Letymbiotis, President Christodoulides held a bilateral meeting with the King of Jordan, Abdullah, on the sidelines of the Gaza Summit taking place in Sharm el-Sheikh.

‘During the meeting, they exchanged views on the latest developments in the region, the prospects for the implementation of the ceasefire agreement and the next day in Gaza, as well as on the role that Cyprus and Jordan can play in regional stability and reconstruction,’ he adds.

In earlier post, Letymbiotis refers to Cyprus’ participation in the international summit on Gaza, noting that the country, as an actor of regional stability, ‘continues to confirm its role as a reliable partner’, in the region.

Referring to Cyprus’ “continuous diplomatic presence, national consistency and political credibility”, conditions, he noted, that were “cultivated and established” by President Christodoulides’ Government, Letymbiotis said the country participates in the summit “at an historic juncture for the Middle East, a defining moment for the creation of conditions of security and stability in a region that has been tested by tensions and uncertainty.’

The 2026 surplus budget reinforces the economy’s steady growth trajectory, but further structural reforms are needed to contain the upward trend in inelastic spending, Central Bank of Cyprus (CBC) Governor Christodoulos Patsalides said Monday during the meeting of the House Finance Committee on the 2026 State Budget.

Patsalides also informed MPs that on the basis of a study which was carried out in September 2024, the Bank has submitted recently to the government a comprehensive proposal and draft legislative amendments for the reform of the Central Bank’s governing structure based on the Deutsche Bundesbank model, noting the need for reform in order to enhance its participation in the EU and to more effectively meet future challenges.

In his presentation, Patsalides initially referred to developments in the Eurozone, noting that the Eurozone economy grew by 1.3% in the first half of 2025, while the Eurosystem’s most recent forecasts show growth of 1-1.3% in 2025-2027, supported by consumption, employment, public spending and more favourable financing conditions.

Regarding inflation, he said that, influenced mainly by decreases in energy prices and the appreciation of the euro, it has receded and is moving close to the 2% target, while it is expected to be 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027, with continued pressures from food prices, which burden disposable income, but that are expected to weaken in the medium term.

Regarding the Cypriot economy, the CBC Governor said that it maintains strong momentum and resilience, with Gross Domestic Product growing by 3.3% in the first half of 2025 (compared to 1.3% in the Eurozone), while the CBC’s most recent forecasts show growth of 3.3% for 2025 and around 3% for 2026-2027.

He added that the labour market remains resilient, with unemployment at 4.7%, very close to full employment, while inflation is expected to decline to 1% in 2025 and fluctuate around 2% over the next two years.

The gradual easing of the ECB’s monetary policy contributed to the significant de-escalation of interest rates on loans to businesses and households, Patsalides also said, adding that the average interest rate on new business loans decreased by almost 2 percentage points since 2023, while a higher decrease was recorded as regards housing loans.

In this context, the difference in interest rates between Cyprus and the countries Eurozone median has generally been on a downward trend in the recent period, he noted, with the weighted average interest rate on all loans to households reaching 4% in August 2025, a rate which is fully aligned with the Eurozone median, he said.