Category: Cyprus News Agency

FOR THE PERIOD FROM 0600 07/07/2026 UNTIL 0600 08/07/2026

Atmospheric pressure at the time of issue: 1007hPa (hectopascal)

Seasonal low pressure and unstable weather conditions are affecting the area. The weather will be mainly fine with locally increased low cloud coverage at times, mainly during the night and the morning.

Visibility: Good

Sea surface temperature: 27°C

Warnings: NIL

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West Coast

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Southwest to West 3 to 4, later locally 4

Slight

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Southwest to Northwest 3 to 4, locally 4 to 5

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Night

Southwest to Northwest 3 to 4, locally Northwest to North 3

Slight

South Coast

Morning

Southeast to Southwest 3 to 4, later South to Southwest 4

Smooth to Slight

Afternoon

Southwest to West 5, at times locally 6

Slight, at times locally Slight to Moderate

Night

Southwest to West 4 to 5, gradually 3 to 4

Slight, gradually Smooth to Slight

East Coast

Morning

Southeast to Southwest 3 to 4, later South to Southwest 4

Smooth to Slight

Afternoon

South to Southwest 4 to 5, at times 5 to 6

Smooth to Slight, at times Slight

Night

Southwest to West 3 to 4, locally at first Southwest 4 to 5

Smooth to Slight, locally at first Slight

North Coast

Morning

Southwest to Northwest 3 to 4, gradually locally 4

Smooth to Slight, gradually locally Slight

Afternoon

Southwest to West 4, locally 4 to 5

Slight, locally Smooth to Slight

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Southwest to West 3 to 4, locally near the coast Southeast to Southwest 3

Slight, locally near the coast Smooth to Slight

Time of issue: 0530

Date: 07/07/2026

CNA/ME/EPH/2026

An Outcomes and Insights Report on Cyprus’ agrifood ecosystem provides a roadmap for strengthening innovation and presents the challenges facing the ecosystem. The report was discussed at the inaugural EIT Food Cyprus Stakeholder Activation Event, organised by SocialTech Lab in its role as EIT Food Country Representative Cyprus, member of the EIT Community Hub Cyprus. EIT Food is supported by the European Institute of Innovation and Technology (EIT), a body of the European Union.

The event was held on May 25 at the CYENS Centre of Excellence in Nicosia.

SocialTech Lab said in a press release on Monday that participants took part in facilitated roundtable discussions and collaborative workshops focused on four strategic themes: innovation and digital transformation, access to funding and investment, sustainability and circular economy, and collaboration and ecosystem coordination. The event formed part of SocialTech Lab’s role as EIT Food Country Representative Cyprus, helping strengthen connections between Cyprus’ agrifood ecosystem, as well as EIT Food’s wider European innovation network.

”The discussions have now been brought together in a newly published Outcomes and Insights Report, which captures the ecosystem’s collective perspectives and identifies priority actions for future development. The report provides a practical roadmap for strengthening innovation capacity, supporting entrepreneurship and building a more connected, resilient and sustainable agrifood ecosystem in Cyprus,” the press release noted.

It further added that ”among the key findings, stakeholders identified ecosystem fragmentation, barriers to innovation adoption, limited commercialisation pathways, funding complexity, climate and resource pressures, and an ageing farming population as some of the sector’s most pressing challenges.” At the same time, it said that ”discussions revealed strong confidence in Cyprus’ potential to become a regional hub for agrifood innovation by leveraging its strategic location, research excellence, entrepreneurial talent and growing commitment to sustainability.”

”The report also highlights practical opportunities for future action, including expanding living labs and demonstration farms, accelerating research-to-market collaboration, supporting technology adoption, advancing regenerative agriculture and circular economy solutions, improving access to funding, and strengthening coordination across the ecosystem,” the press release said. ”Across every discussion, one message emerged consistently: Cyprus already possesses many of the ingredients for success, but achieving meaningful impact will require stronger collaboration and coordinated action across sectors,” it added.

It also pointed out that ”as the first structured consultation of Cyprus’ agrifood ecosystem since SocialTech Lab’s appointment as EIT Food Country Representative Cyprus, the report establishes an important baseline for future ecosystem development.” ”The outcomes are already informing the next phase of ecosystem-building, with SocialTech Lab currently delivering the Empowering Women in Agrifood (EWA) Grow programme and preparing its Ground2Scale (G2S) flagship event re-convening agrifood stakeholders while supporting agrifood startups through training and mentoring,” it noted.

Finally, SocialTech Lab said that it invites relevant stakeholders to explore the findings and contribute to the ongoing dialogue as Cyprus continues to strengthen its role within Europe’s agrifood innovation landscape.

EU deploys wildfire support to face multiple fires across Portugal and France

As Europe is fighting wildfires in several Member States, the Commission is swiftly mobilising assistance via the European Civil Protection Mechanism (UCPM). Over the weekend, Portugal and France have activated the UCPM due to devastating wildfires, with several of them active simultaneously and burning thousands of hectares.

France activated the UCPM on 5 July. The European Commission has mobilised four rescEU airplanes from Sweden and Cyprus, expected to arrive to the affected areas today. Portugal activated the Mechanism on 3 July. 118 firefighters and 45 vehicles from Spain arrived on site a few hours after the activation and three rescEU firefighting aircrafts from Italy and Spain were deployed.

This year, the Commission has deployed a record number of firefighters to combat wildfires. 777 firefighters from 14 European countries are already or soon will be strategically pre-positioned in high-risk areas across Cyprus, Greece, Italy, France, Spain, and Portugal. In parallel, 22 firefighting airplanes and five helicopters from the EU fleet are ready to support countries under pressure.

Commissioner for equality, preparedness and crisis management, Hadja Lahbib said: ‘As Portugal and France face an extreme wildfire threat during this severe heatwave, every minute matters. I am proud to see the EU Civil Protection Mechanism once again delivering swift support when it is needed most. Firefighting aircraft, ground teams and vehicles from Sweden, Cyprus, Italy and Spain are already helping emergency crews on the ground. In the face of these devastating fires, Europe stands together. We are united in our determination to protect lives, communities, livelihoods and our natural environment.”

Through the EU Civil Protection Mechanism, countries affected by wildfires can request operational assistance. The EU has also established rescEU, a strategic reserve of emergency capacities designed to provide additional support during large-scale crises. Recognising the rising risks of wildfires with climate change, the Commission presented a new integrated approach to wildfire risk management in March 2026, which provides guidance on how to better prevent, prepare for, respond and recover from wildfires.

(Eva Hrncirova – Tel.: +32 2 298 84 33; Anna Gray – Tel.: +32 2 298 08 73)

Commission report highlights achievements of EU rules on animal health

Ten years after its adoption, the European Commission has published an evaluation of the EU Animal Health Law. The evaluation and accompanying report highlight the positive impact that the legislation has had in tackling animal diseases, while also presenting areas for improvement. Animal diseases can have devastating consequences for farmers and rural communities, and impact public health, economies and trade. The Animal Health Law has helped to reduce these impacts and control diseases while providing a strong framework for preventative, risk-based animal health measures across the EU. Maintaining high standards of animal health is one of the reasons why the EU is the biggest exporter of agricultural goods in the world.

At the same time, the Commission has identified certain areas where further work is needed to harness the full benefits of the law. These include more even application of the rules across Member States, a better adaptable disease categorisation system in the face of new and emerging threats, and potentially greater use of vaccination as a preventative tool.

The current animal health framework is based on the latest scientific knowledge and is continuously updated when needed. The evaluation has been published ahead of a high-level conference to mark 10 years of the Animal Health Law, which will take place in Brussels on 8 July and will be opened by Olivér Várhelyi, Commissioner for Health and Animal Welfare. This event will be an opportunity to discuss its implementation, achievements of the framework, and future challenges. The conference can be followed online.

(For more information: Eva Hrncirova – Tel.: +32 2 298 84 33; Anna Gray – Tel.: +32 2 298 08 73)

EU agricultural markets remain robust despite uncertainties and rising input costs

EU agricultural markets are expected to remain robust in 2026, according to the summer 2026 edition of the short-term outlook report for EU agricultural markets, published today by the European Commission. To note, this report does not take into account the ongoing heatwaves which are severely affecting famers all across Europe, as the data used were collected prior to the ongoing heatwaves.

The sector continues to face significant uncertainty linked to the repercussions of the conflict in the Middle East, weather-related risks, animal diseases and persistent trade tensions. Rising input costs are putting pressure on producer margins. Real GDP growth is forecasted at 1.1%, inflation is expected to rise to 3.1% driven by energy costs, and food prices are set to increase. At the same time, the outlook points to favourable crop conditions in the EU, with winter crop yields expected above the historical average. However, spring and summer crops may suffer from heat and water shortages, particularly in drought-prone regions.

For arable and specialised crops, EU cereal production in 2026/27 is estimated to return to average at 273.7 million tonnes, after exceptionally high yields in the past season. Oilseeds production is expected to rise by 3.1%. Production of protein crops is forecasted to slightly decline but to remain above average, while EU sugar production may decline due to lower area under sugar beet production. Olive oil production is expected to decline from previous production recovery in 2024/25 but to remain above average in 2025/26.

In the case of animal products, EU milk supply is forecast to grow in 2026, driven by higher yields. Increased raw milk availability may boost butter, cheese, whey, and skimmed milk powder production, while exports stay resilient despite weaker Middle East demand and trade disruptions. Poultry production is set to grow, driven by strong demand and high prices. By contrast, beef production is forecasted to decline in 2026 and 2027 due to a declining cow herd.

EU balance sheets are available in the aqri-food data portal. More details are available online.

(For more information: Louise Bogey – Tel.: +32 2 296 97 76; Katerina Horáková – Tel.: +32 2 299 93 10)

Commission clears acquisition of Schroders by Nuveen

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of Schroders plc of the UK by Nuveen, LLC of the US.

The transaction relates primarily to asset management.

The Commission concluded that the notified transaction would not raise competition concerns, given the companies’ limited combined market position resulting from the proposed transaction. The notified transaction was examined under the simplified merger review procedure.

More information is available on the Commission’s competition website, in the public case register under the case number M.12392.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission proposes five joint defence projects to strengthen Europe’s industrial capabilities

Today, the European Commission proposed five new large-scale projects, known as the European Defence Projects of Common Interest (EDPCIs), to help EU countries strengthen their defence capabilities by developing key military systems together.

The industrial projects focus on five priority areas: drones and counter-drone systems; maritime and seabed defence; space; air and missile defence; as well as strengthening security along the EU’s Eastern Flank. They come in response to a Commission call for expression of interest to Member States to submit project proposals for possible EDPCIs.

Under the pound 1.5 billion European Defence Industry Programme (EDIP), the Commission has allocated pound 325 million to support the establishment and deployment of the EDPCIs, as set out in the work programme published on 30 March 2026.

The new projects provide a framework for EU countries to work together on major defence initiatives that are too large or too complex for individual countries to develop on their own. By supporting long-term cooperation, they aim to strengthen Europe’s defence industry and improve the EU’s ability to respond to shared security challenges, in line with NATO capability priorities.

On average, 18 Member States participate in each project and Ukraine participates in four of the five projects. The Commission is expected to take part in the EDPCIs, provide financial support and continue supporting Member States coordinate their implementation. It will also monitor progress against agreed milestones to support the timely delivery of the EDPCIs projects.

Next steps

The Council will now discuss on the formal establishment of the EDPCIs, identifying their objectives and characteristics, the participating countries, and the estimated investment expected to be generated by the EDPCI.

After the Council adopts of the list of identified EDPCIs, those will become eligible to receive EU funding through the European Defence Industry Programme (EDIP) in accordance with a dedicated procedure. Their funding will enable the projects’ initial deployment and lay the foundation for possible further funding via the upcoming European Competitiveness Fund.

Background

The EDIP Regulation was adopted on 16 December 2025. This instrument aims to strengthen and modernise Europe’s defence industry, secure the availability of cutting-edge technology, ramp-up production capacity, support common procurement and also resilience via that steady supply of military equipment to the armed forces of the Member States and the reinforcement of the supply chains.

The Regulation introduces the establishment of EDPCIs as future ambitious collaborative industrial projects aimed to benefit a broader part of the EU and open also to Norway and Ukraine.

For more information

Proposal for a Council Implementing Decision on the establishment of European Projects of Common Interest

Factsheet on Drone and Counter Drone European Resolve

Factsheet on Integrated Maritime and Seabed Defence

Factsheet on Space

Factsheet on EU Federated Integrated Air and Missile Defence including Early Warning

Factsheet on Eastern Flank Watch

European Defence Industry Programme (EDIP)

Factsheet: European Defence – Protect What Matters

Quote(s)

Through these flagship joint defence projects, we are strengthening Europe’s security and defence capabilities. These initiatives reinforce our capacity to safeguard our sovereignty under all circumstances and deepen European defence cooperation. We need to move faster, produce more together and invest in our security and that is exactly what we are doing. We are also supporting Ukraine. The EDPCIS will help us deliver more effectively, reinforce our industrial base, and show that Europe stands ready to match its words with action.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy

These new, ambitious, and long-term defence projects will act as key initiatives to strengthen EU defence readiness and bolster our strategic autonomy. The EDPCIs we are proposing today will make a direct contribution to the development of a European Air, Maritime and Space Shield, enhanced Drone and Counter-Drone Capabilities, and securing the Eastern Flank Watch. With a combined funding ambition of around pound 190 billion by 2036, they will play a key role in strengthening the Member States’ capabilities and keep Europe and Europeans safe.

The United Nations Secretary-General in his latest report on his mission of good offices in Cyprus calls on the leaders of the two communities to use the ‘current window of opportunity for making progress,’ stressing that it ‘should not be taken for granted”. Antonio Guterres says that the ‘intensification of dialogue’ between the Greek Cypriot and Turkish Cypriot leaders ‘remains positive,’ but warns that several agreed trust-building initiatives remain unimplemented and that, without progress, ‘a lasting solution may continue to be elusive”.

In his observations, the Secretary-General says the increased dialogue between Greek Cypriot leader Nikos Christodoulides and Turkish Cypriot leader Tufan Erhrman ‘demonstrates their commitment to building a relationship based on trust and to finding a path forward on the Cyprus issue.’ He adds that he is ‘encouraged’ by the agreement on a framework for establishing ‘a consultative body to engage with civil society on the peace process,’ calling it ‘an important step’ toward ‘a more inclusive peace process, where the public remains aware and engaged”.

At the same time, he notes that ‘several trust building initiatives that were agreed in March and July 2025 remain unimplemented,’ including ‘the opening of additional crossing points.’ Their implementation, he says, ‘would improve the daily lives of Cypriots’ and show concretely that the sides possess ‘the political will to make progress”.

The Secretary-General urges the leaders to continue their ‘constructive engagement’ with each other and with his Personal Envoy, María Ángela Holguín, ‘with the aim of resuming negotiations that would lead to a lasting and comprehensive settlement.’ He calls on them to use the ‘current window of opportunity for making progress,’ stressing that it ‘should not be taken for granted”.

Both sides, he adds, should engage ‘with determination to construct a future together’ through an agreement that takes into account ‘the interests and rights of all Cypriots.’ He also echoes the Security Council in stressing the need for ‘openness, flexibility and compromise’ and for the parties to show ‘the necessary political will and commitment”.

Guterres further says that he counts on the continued support of the guarantor powers and the broader international community, including the European Union.

The report gives particular emphasis to the women, peace and security agenda and the youth, peace and security agenda. The Secretary-General says the involvement of women and underrepresented groups, including ‘religious minorities, young people and persons with disabilities,’ is ‘critical”.

He commends the two sides for maintaining gender parity within the technical committees and again calls on the leaders to implement the April 2022 Action Plan on women’s ‘full, equal and meaningful participation’ in the settlement process, so that any future peace agreement ‘equally benefits men and women”.

On the technical committees, the Secretary-General says they have ‘continued to build on their heightened importance,’ underlining the ‘added value of their work’ and their contribution to dialogue and peacebuilding. He welcomes the open day event that highlighted the ‘critical work of the technical committees,’ while calling on the leaders to support progress in ‘education, crisis management and the environment.’ He again stresses the importance of education to instill ‘reconciliation, forgiveness and cooperation’ among school-aged children and notes that sports, although still underexplored, have shown ‘a unique capacity to bring together individuals who might not otherwise interact”.

The report, however, also contains a clear warning on the security situation. The Secretary-General says he remains ‘deeply concerned over unilateral actions by both sides in and around the buffer zone’ and over the ‘lack of progress in taking de-escalatory steps.’ Such actions, he says, ‘undermine the military status quo of the area, the integrity of the buffer zone and the Security Council mandate’ and are ‘not conducive to the broader peace process”.

On Varosha, the Secretary-General reiterates that ‘the position of the United Nations on Varosha remains unchanged,’ including with respect to adherence to Security Council resolutions 550 and 789. He also urges the two leaders to consider ‘ways to move past the impasses’ around opening new crossings and calls on both sides to facilitate ‘the movement of people and goods through existing crossings”.

The report says the full benefits of the enlargement of the Agios Dometios/Metehan crossing point will depend on both sides ensuring adequate staffing for document checks and services, as agreed by the leaders on 11 December 2025. The Secretary-General also urges ‘the full implementation of the Green Line Regulation’ to help increase ‘intra-island trade and cooperation between the two communities”.

The Secretary-General welcomes the leaders’ agreement of 8 May to work on ‘an initial plan for the conduct of religious services.’ Religious leaders, he says, have in the past been ‘a powerful joint voice towards peace’ and in support of the dialogue between the two community leaders and the United Nations.

In the section on significant developments, the report says the Secretary-General continued his engagements toward ‘a peaceful resolution of the Cyprus issue,’ meeting separately with Mr. Christodoulides and Mr. Erhrman. It also says Ms. Holguín ‘intensified her efforts’ to support Cypriots ‘to find a way forward and reach a negotiated solution for the Cyprus issue.’ She visited Cyprus in January and June 2026, met separately with the two leaders and hosted a joint meeting on 28 January, strongly encouraging them to adopt measures that would ‘build trust and alleviate the daily lives of Cypriots”.

The Personal Envoy also held meetings with the Foreign Ministers of Turkey and Greece, senior officials of the United Kingdom, officials of the European Union and senior officials of the United States Department of State. In her engagement with the EU, including with High Representative/Vice-President Kaja Kallas, she underlined ‘the need to involve young Cypriots in the dynamics and realities of the island’ and the importance of EU support to the Secretary-General’s efforts.

The report notes that the two leaders met bilaterally under UN auspices three additional times during the reporting period, continuing the ‘significantly higher meeting frequency’ that began after Mr. Erhrman took office. In addition, ’26 meetings of the representatives of the two leaders took place”.

Of the ten trust-building initiatives agreed in broader-format meetings in March and July 2025, the sides moved forward on a consultative body for civil society engagement, the rehabilitation of cemeteries and the establishment of a Technical Committee on Youth. However, there were ‘no significant developments’ on the opening of new crossing points, demining, the establishment of a solar plant in the buffer zone, the exchange of art and artifacts, or environmental initiatives.

The report also notes that the ‘precarious situation in the Middle East’ drew public attention, including because of the deployment of ‘significant foreign military assets in and around Cyprus,’ causing ‘some tension between the sides.’ It says the situation in the buffer zone remained fragile, ‘notably in the Pyla/Pile plateau,’ while the foot and mouth disease outbreak among livestock became ‘a major issue affecting both communities and bicommunal relations”.

During the reporting period, the Secretary-General’s mission of good offices promoted ‘intra-island contacts, cooperation and trust-building’ and held 128 meetings with representatives of the leaders, political parties, religious leaders, civil society organizations, women and youth, the European Union, the World Bank, the diplomatic community and visiting officials.

The technical committees were also active. The report says ‘174 meetings’ were convened across all 13 technical committees, with the most active being those on crossings, cultural heritage, culture, economic and commercial matters, health and youth.

The Technical Committee on Crossings marked the completion of the ‘long-awaited expansion’ of the Agios Dometios/Metehan crossing point, which added lanes, booths, a pedestrian path and space for solar-powered lighting and greenery.

The Technical Committee on Cultural Heritage advanced restoration and conservation activities for approximately 70 cemeteries, either completed, ongoing or under preparation. Its Digital Heritage initiative uses ‘3D reconstruction and virtual reality technologies’ to enhance access to cultural heritage and encourage youth participation and intergenerational learning.

The Technical Committee on Culture organized the exhibition ‘Through Ordinary Eyes,’ showing photographs of everyday life on both sides of the divide in Nicosia. The Technical Committee on Economic and Commercial Matters oversaw a pilot exchange of worn-out euro banknotes held in the north for new ones, totaling 2 million euros, and hosted the event ‘Connecting Businesswomen: Empowering Women, Creating Opportunities”.

The Technical Committee on Gender Equality resumed work in January 2026 after a pause in 2025. For International Women’s Day, it issued a joint statement and videos emphasizing that ‘women’s full and equal participation in public life and decision-making is vital for trust, strong institutions, and lasting peace”.

The Technical Committee on Health addressed patient cases and, through its Subcommittee on Veterinary Affairs, monitored the foot and mouth disease outbreak and helped ensure that EU-sourced livestock vaccines were available across the island.

The report also highlights the youth dimension. The Secretary-General notes that the increased visibility of the youth, peace and security agenda was ‘notable,’ making the current dialogue process ‘more inclusive and responsive to youth perspectives.’ The Technical Committee on Youth held an event on mental health and the challenges young people face across the island, visited EU institutions in Brussels, and raised ‘sport for peace’ in its discussions.

The Secretary-General closes by saying he remains committed to contact and dialogue with the sides and the guarantor powers, guided by the relevant Security Council resolutions.

‘I call upon them to continue to engage constructively in the ongoing efforts, fully recognizing the important role that they play in the Cyprus peace process’ he says.

While he is encouraged that some trust-building initiatives are being implemented, he stresses that they ‘cannot replace negotiations aimed at a comprehensive settlement.’ A lasting solution, he says, has the potential ‘to strengthen security, prosperity and development,’ allowing both communities to live together in ‘tolerance, solidarity and respect”.

‘My Personal Envoy and I will remain at the disposal of the parties’ he assures.

New lending in Cyprus increased significantly in May 2026, driven by strong growth in housing loans, while the average interest rate on new mortgages rose to 4.06%, according to the latest interest rate and lending statistics released by the Central Bank of Cyprus.

Pure new loans increased to pound 361.9 million in May, compared with pound 331.3 million in April. The strongest increase was recorded in housing loans, which rose to pound 145.5 million from pound 106.0 million a month earlier. Consumer loans also increased to pound 23.9 million from pound 21.8 million, while new loans to non-financial corporations of up to pound 1 million climbed to pound 63.4 million from pound 39.4 million. By contrast, new business loans exceeding pound 1 million declined to pound 121.5 million from pound 156.8 million.

As regards interest rates on new lending, the average rate on housing loans increased to 4.06% from 3.73% in April, while the rate on consumer credit fell to 6.95% from 7.19%. The interest rate on loans to non-financial corporations of up to pound 1 million edged up to 4.27% from 4.20%, whereas the rate on loans above pound 1 million declined to 3.85% from 4.08%.

At the same time, deposit rates increased, with the interest rate on household time deposits with an agreed maturity of up to one year rising to 1.25% from 1.20%, while the corresponding rate for non-financial corporations increased to 1.31% from 1.23%.

The Central Bank’s analysis shows that interest rates on new loans in Cyprus remain broadly in line with the euro area median. More specifically, interest rates on new housing loans are 0.2 percentage points below the euro area median, while new business lending rates are 0.2 percentage points above it.

By contrast, deposit rates continue to rank among the lowest in the euro area, a development which the Central Bank attributes mainly to the high level of liquidity in the Cypriot banking system.

Regarding the pass-through of the European Central Bank’s monetary policy decisions, the Central Bank’s analysis indicates that Cyprus is broadly aligned with the rest of the euro area in the transmission of interest rate changes to outstanding loans. For new housing loans, the pass-through of both interest rate increases and decreases is also broadly comparable with the euro area average.

However, the pass-through to new corporate loans appears weaker during both periods of ECB monetary tightening and monetary easing. At the same time, the pass-through of changes in ECB rates to new deposit rates remains weaker in Cyprus than in most euro area countries, a trend reflected in the relatively low deposit rates offered by Cypriot banks.

The report also highlights a notable shift in the composition of new mortgage lending, with the share of loans carrying a floating interest rate, or an initial fixed-rate period of up to one year, declining sharply in recent years.

In May 2026, the share stood at 17.8%, down from almost 100% at the beginning of 2022, indicating a growing preference among borrowers for loans with fixed interest rates during the initial years of repayment.

Cyprus has joined the European response to the severe wildfires affecting France by deploying two rescEU firefighting aircraft, as the European Commission stepped up assistance through the EU Civil Protection Mechanism (UCPM), the European Commission has announced.

According to the Commission, France activated the Mechanism on 5 July following multiple large wildfires burning simultaneously across the country. In response, the Commission mobilised four rescEU firefighting aircraft from Sweden and Cyprus, which are expected to arrive in the affected areas today.

Portugal activated the Mechanism on 3 July after devastating wildfires broke out across the country. Within hours of the request, 118 firefighters and 45 vehicles from Spain arrived on the ground, while three rescEU firefighting aircraft from Italy and Spain were also deployed.

The Commission noted that this year’s wildfire season has seen a record deployment of European firefighting resources. A total of 777 firefighters from 14 European countries are already, or will soon be, strategically pre-positioned in high-risk areas across Cyprus, Greece, Italy, France, Spain and Portugal. In parallel, the EU’s rescEU fleet has 22 firefighting aircraft and five helicopters on standby to assist Member States facing major wildfire emergencies.

Commissioner for Equality, Preparedness and Crisis Management Hadja Lahbib said that as Portugal and France face an extreme wildfire threat during the ongoing heatwave, “every minute matters.”

She said the EU Civil Protection Mechanism had once again delivered rapid assistance where it was most needed, with aircraft, ground teams and vehicles from Sweden, Cyprus, Italy and Spain already supporting emergency crews. She stressed that Europe stands united in protecting lives, communities, livelihoods and the natural environment.

The Cyprus Composite Leading Economic Index (CCLEI) remained in negative territory in June 2026, recording a year-on-year decline of 0.65%, reflecting continued external pressures and subdued economic activity amid heightened geopolitical uncertainty, according to the Economics Research Centre (CypERC) of the University of Cyprus.

The Centre said the latest annual decline follows similar contractions recorded in previous months, indicating that the short-term outlook for the Cypriot economy continues to be weighed down by an uncertain international environment.

The negative performance of the CCLEI was driven primarily by the weighted Economic Sentiment Indicator (ESI), which combines economic sentiment in Cyprus and the euro area. The indicator remained below its June 2025 level, mainly reflecting weaker business and consumer confidence in Cyprus.

Additional downward pressure came from higher year-on-year Brent crude oil prices, while the temperature-adjusted volume of electricity production and tourist arrivals also posted annual declines.

However, several components of the index continued to provide support to economic activity, limiting the overall negative impact. Positive contributions came from the value of transactions with Cypriot credit cards, the retail sales volume index, and property sales contracts.

Overall, CypERC said the June reading suggests that the Cypriot economy continues to face short-term challenges stemming mainly from the uncertain international economic and geopolitical environment. At the same time, the resilience shown by domestic consumption and the property market indicates that some sectors continue to underpin economic activity.

The CCLEI is designed to provide early warning signals of turning points in Cyprus’ business cycle. It is compiled using a range of leading indicators that tend to precede changes in overall economic activity, including the Economic Sentiment Indicator, Brent crude oil prices, tourist arrivals, Cypriot credit card transactions, retail sales, property sales contracts, and temperature-adjusted electricity production.

According to CypERC, the June 2026 estimate is based on available weekly data for Brent crude oil prices and electricity production, monthly data on the Economic Sentiment Indicator for Cyprus and the euro area, as well as preliminary data on property sales contracts, tourist arrivals, and retail trade.

European Commission officials paid Cyprus a visit 2 and 3 of July in the context of the Annual Performance Review Meeting of the Cohesion Policy Programme “THALIA2021-2027”, focusing on the progress of the Programme’s implementation and the impact of Cohesion Policy investments in Cyprus.

According to a press release by the Directorate General Growth of the Ministry of Finance, representatives of the DGs for Regional and Urban Policy (DG REGIO) and Employment, Social Affairs and Inclusion (DG EMPL) of the European Commission participated in the deliberations of the Annual Performance Review Meeting, organised by the DG Growth as the Managing Authority of the Programme, with the participation of representatives of competent Ministries and other involved bodies.

During the meeting, they were presented with the progress of the implementation of the ‘THALIA2021-2027’ Programme and they reviewed the progress towards fulfilling the necessary conditions for its implementation and discussed the priorities of its mid-term review.

The representatives of the European Commission also carried out on-site visits to projects co-financed by the ‘THALIA2021-2027’ Programme, covering areas related to the green transition, research and innovation, environmental protection, sustainable urban development and social cohesion.

The Cohesion Policy Programme “THALIA2021-2027” is the largest public investment development programme implemented in Cyprus, with a total budget of pound 1.8 billion, of which pound 969 million comes from the European Union and pound 842 million from national resources.

The Programme finances investments that promote the green and digital transition, strengthen the competitiveness of the economy, create quality jobs and improve the quality of life of citizens throughout Cyprus.

Cyprus’ construction sector recorded modest growth in activity during the first quarter of 2026, while construction prices continued to rise at a faster pace, according to data released on Monday by the Statistical Service of Cyprus.

The Index of Production in Construction reached 120.74 points (2021=100) in the January-March period, marking a 0.7% increase compared with the first quarter of 2025.

The figures indicate that construction activity continued to expand, albeit at a significantly slower pace than the 5.2% annual growth recorded for 2025 as a whole.

At the same time, cost pressures in the sector remained elevated. The Output Prices Index in Construction rose to 129.46 points during the first quarter, up 4.7% from the corresponding period of 2025 and 3.0% higher than in the fourth quarter of 2025.

Shipping Deputy Minister to the President, Marina Hadjimanolis, departs on Monday for a working visit to London, where she will attend an event organised by the Deputy Ministry of Shipping at the International Maritime Organization (IMO) to promote Cyprus shipping.

The event takes place within the framework of the IMO Council sessions, in the presence of the Secretary-General of the Organization, Arsenio Dominguez, and representatives of IMO member states, a Deputy Ministry press release said here today.

During her stay in London, Hadjimanolis will hold a bilateral meeting with the Chairman of the General Authority for Transport of Saudi Arabia, Eng. Fawaz Al Sehali, focusing on strengthening cooperation between the two countries in the field of shipping.

She will meet with representatives of shipping companies, aiming to enhance cooperation and promote the Cyprus registry and Cyprus shipping in general, the press release concludes.