AGP Executive Report

EU Funding & Reunification: The European Commission approved a €34m 2026 aid programme for the Turkish Cypriot community, backing projects in energy, school infrastructure, wastewater and waste treatment, and support for SMEs, innovation and Green Line trade, including alignment with EU food safety and animal health standards. Agriculture Recovery: Cyprus unveiled a €610.9m, 12-year plan to rebuild the livestock sector after foot-and-mouth disease, with compensation already reported at €17.29m and major funding for sheep/goats, cattle productivity, and biosecurity measures. Energy & Costs: Cyprus extended a fuel tax cut until Nov. 30, but economists warn ECB rate hikes could continue if Middle East tensions worsen and oil-driven inflation persists, raising borrowing costs for households and businesses. Shipping & Ports: MedCruise marks 30 years as the Mediterranean cruise port association, now representing 170+ ports across 22 countries and pushing sustainable cruise tourism through cooperation and research. Local Governance: Nicosia mayor called for stronger public participation in consultations on the city’s local plan, urging more youth involvement and wider use of digital tools. Business Climate: Keve urged a formal, regular government dialogue on competitiveness to prevent companies leaving and to better capture opportunities from geopolitical uncertainty. Politics & Israel Ties: Disy and Akel traded accusations over the Israeli president’s visit, as protests argued Cyprus should be a bridge for peace, not a base for war.

Competitiveness Push: Keve is urging a formal, regular government dialogue on competitiveness and foreign direct investment, warning Cyprus must act early when firms consider leaving. Livestock Recovery Plan: Cyprus unveiled a €610.9m, 12-year rebuild programme for the livestock sector after foot-and-mouth disease, including compensation already paid and funding for breeding, biosecurity and fencing. Energy & Cost Pressure: The fuel tax cut was extended to end-November, but oil price spikes tied to Hormuz and Red Sea risks could still erase savings; meanwhile ECB rate hikes are set to hit variable-rate borrowers. Finance & Innovation: Bank of Cyprus launched details for BoC Fintech Hackathon 7.0 (Nov 27-29) with €16,000 in prizes, open banking support and themes from cybersecurity to smart cities. Energy Tech Partnerships: Oev is linking Cyprus energy-storage and electric-mobility firms with German companies via free B2B meetings in October. Maritime Security Training: Cyprus and Egypt completed a joint CYCLOPS port and maritime security drill focused on VBSS/CBRN operations. Regulation Watch: Lawmakers raised alarm over soaring e-scooter and e-bike complaints and rising injuries, pushing for faster infrastructure and enforcement. Shipping Decarbonisation: Greek and Cypriot shipping voices warn the IMO net-zero rules must fit real fuel supply and investment realities ahead of key December talks.

Cyprus Competitiveness & Modernisation: Commerce Minister Michael Damianos said Cyprus is betting on the green and digital transition, with over €500m secured in the 2021-2027 period to back entrepreneurship, industrial development, energy upgrading, the circular economy and business digital transformation. Energy & Defence Links: President Isaac Herzog met Nikos Christodoulides in Nicosia, pushing for expanded Mediterranean diplomacy and signalling Israeli defence and economic cooperation; Cyprus is also exploring SAFE financing opportunities for defence investment. EU Procurement Push: The European Commission proposed a Public Procurement Act that would let public buyers exclude bids from suppliers in countries not covered by EU procurement agreements, with reports framing it as aimed at China—raising concerns of protectionism. Maritime Governance: Cyprus’ planned coast guard will start under the justice ministry and later move to the deputy shipping ministry, with duties including offshore platforms and fibre optic cable protection. Housing & Land Access: A new scheme will offer eligible families state plots at 25% of market value, with eligibility rules expected mid-September and additional costs for land preparation and building plans. Agriculture Prices: Eurostat data showed EU agricultural output prices down 5.8% in Q2 2026; Cyprus was among the few with an increase (+3.5%), while input costs rose across the bloc. Productivity Focus: A University of Cyprus report found productivity gains over 1996-2025 were concentrated in a few sectors, led by ICT, while agriculture and some services saw declines. Local Business & Skills: Cabinet approved new board appointments including CySEC leadership and the first governing board for the National Cancer Institute, alongside youth and other public bodies.

Maritime Governance: Cyprus’ planned coast guard will start under the justice ministry, then move to the deputy shipping ministry, taking over maritime law enforcement and also protecting offshore platforms and fibre optic cables, with a Mari base at Evangelos Florakis and staff/assets to be integrated from existing services. Energy Interconnectors: DIKO’s Nicholas Papadopoulos says a navtex warning for Great Sea Interconnector seabed surveys will be issued within days, citing EU and investor backing despite Turkey-related geostrategic risk. Israel Ties: Israeli President Isaac Herzog begins talks in Cyprus with President Christodoulides, with cooperation expected to cover security, defence, energy, tourism and emergency planning. Tourism Push: Cabinet approved five tourism incentive schemes to move beyond coastal resorts, including a €1.5m grant for Kato Pyrgos Tyllirias and multi-year support for conferences, sports teams, rural experiences and Christmas villages. Agriculture Prices: Cyprus recorded a 3.5% year-on-year rise in agricultural output prices in Q2 2026, among the highest in the EU as bloc prices fell. Shipping Industry: Cyprus, Greece, Malta and Italy signed a joint declaration to strengthen their stance on EU shipping competitiveness and decarbonisation. Fuel Costs: Cyprus extended reduced petrol and diesel excise duty until end of November to cushion households and businesses from volatile energy markets. Education & Tech: “The League” launches as a free year-round AI and skills ecosystem for 16+ teens, with applications open for an eight-week agentic AI basecamp.

CAP Reform Watch: Cyprus-linked CAP talks in the EU are moving toward a partial general approach for 2028-2034, with Cyprus among member states that previously backed ending entitlement-based direct payments after 2027. Flood-Resilient Infrastructure: Garden City has started a multi-phase streetscape plan to cut flooding, improve drainage, and move power lines underground. Energy Links & Pricing Doubts: Cyprus says the Great Sea Interconnector (GSI) is “closer than ever” after Meridiam’s entry, but Finance Minister Keravnos warns costs could rise and price drops aren’t guaranteed. Desalination Fight in Mazotos: Residents demand cancellation of a desalination plant decision, citing lack of consultation and missing studies. Fuel Cost Pressure: Cyprus Consumers Association reports households paid an extra €23m for fuel over six months, with Nicosia flagged for deeper investigation. Maritime/Engineering: McDermott has won a major engineering contract tied to Eni’s Cronos gas project, while Egypt-Greece-Cyprus renewed support for exporting Cypriot gas to Europe via Egyptian facilities. Aviation Disruption: A UK ATC glitch grounded and canceled hundreds of flights, with passengers “unlikely” to receive compensation. School Supply Strain: Primary schools start the year with missing maths textbooks across five grades due to printing and delivery delays. Crypto & Finance: FP Markets secured a UAE CMA Category 5 licence, expanding its regulated presence in the Gulf.

Shipping & Decarbonisation: Cyprus, Greece, Malta and Italy signed a joint declaration in Limassol to push a stronger common front in Brussels and the IMO on competitiveness and shipping decarbonisation. Energy & Industry: McDermott won its first subsea project award from Eni Cyprus for the Cronos gas field (Block 6), supporting engineering, procurement and installation. Capital Markets: CySEC is set for a leadership change as George Karatzias returns as chairman, replacing George Theocharides. Trade & Costs: Cyprus’ trade deficit widened to €5.62bn in Jan–Jul 2026 as imports jumped 11.4% while exports rose 2.8%, and drivers face more fuel price pressure from refinery costs. Business & Jobs: Keve urged a review of Cyprus competitiveness after BrainRocket reportedly closed its Limassol offices and offered relocation packages. Finance & Regulation: Cyprus FX dealer candidates are being told to prove practical desk knowledge in interviews, not just theory. Agriculture & Health: Foot-and-mouth disease compensation reached €17.5m, while Near East University reported carbapenem-resistant, hypervirulent Klebsiella pneumoniae traits in Cyprus. Research & Tech: Cyprus and Australia discussed AI and research links ahead of Australia’s Horizon Europe participation.

Energy & Security Diplomacy: Cyprus, Greece and Egypt reaffirmed a strategic partnership in El Alamein, backing electricity interconnection (including GREGY), natural gas links, and faster delivery of projects, with Kronos’ Cyprus FID highlighted as a step toward exporting gas via Egyptian infrastructure. Maritime Cooperation: Bahrain and Cyprus moved to deepen maritime ties, including a Bahrain–Cyprus MoU on cooperation in maritime affairs and port visits aimed at sharing expertise. Pharma Safety: Cyprus pharmacists warn consumers against unapproved or illegally sold medicines online, urging purchases only from licensed pharmacies and cautioning against “miracle” claims. Agriculture & Biosecurity: Cyprus’ foot-and-mouth disease “reboot” depends on farmers completing mandated disinfection; authorities say some are delaying restart by not disinfecting properly, risking re-infection. Aviation Disruption: UK air traffic control system failures hit Cyprus flights, with multiple cancellations and widespread delays across Britain. Business/Brand Expansion: TGI Fridays signed a development deal with Devolli Group for its first expansion into Kosovo, Albania and North Macedonia (10 restaurants). Regional Industry Watch: A La Habra, California chemical leak triggered shelter-in-place/evacuations after orange smoke from an industrial chemical facility; authorities later lifted advisories after mitigation.

Energy & Industry Deal: Eni has awarded Houston-based McDermott a major subsea contract (Cronos gas development offshore Cyprus), pushing the project into execution with first gas targeted for 2028. Regional Diplomacy for Business: President Christodoulides heads to El Alamein for the Cyprus-Greece-Egypt trilateral summit, with energy and defence cooperation high on the agenda. EU Policy Pressure: Brussels is weighing new EU budget funding sources tied to pollution and poorly collected electronics—raising the stakes for Cyprus, which collects the lowest e-waste per person in the EU. Hospitality Expansion: TGI Fridays™ signs with Devolli Group for its first Balkans expansion into Kosovo, Albania and North Macedonia. Primary Sector Support: Christodoulides announces €1.5m for two agricultural projects to offset higher costs of oil and fertilisers. Tech & Jobs: BrainRocket closes its Limassol offices and offers relocation abroad, effectively ending its Cyprus presence. Trade Links: Cyprus and Bahrain move to deepen maritime cooperation after port-level talks at Khalifa Bin Salman Port. Tourism Access: Paphos starts mapping accessibility gaps across tourism infrastructure, aiming for an integrated plan by mid-2027. Tax & Investment Risk: AmCham Cyprus warns Pillar Two minimum tax rules could affect US investment decisions and jobs. Property Market: Cyprus property sales keep growing in August, with Limassol and Paphos driving most of the increase.

Maritime Cooperation: Cyprus and Bahrain discussed stronger bilateral maritime ties during a delegation visit to Khalifa Bin Salman Port, focusing on logistics frameworks, port management modernisation and digital service integrations. UK-EU Angle: UK Prime Minister Andy Burnham told President Nikos Christodoulides the UK intends to “get closer” to the EU, while also flagging de-escalation efforts around the Strait of Hormuz. Energy Grid Stakes: Cyprus Energy Minister Michalis Damianos insisted the Great Sea Interconnector will pass through Cyprus, after reports raised fears of alternative routing that could leave the island out. Shipping Safety & Recovery: Turkey said nine ships and 11 aircraft are involved in the search for missing people after the Kyrenia ferry disaster, with an investigation underway and crew detained. Agriculture Policy: The EU confirmed no CAP payments go to farmers in areas not controlled by the Republic of Cyprus, citing foot-and-mouth measures and administration via the island’s CAP Strategic Plan. Household Costs: Cyprus borrowers may face another mortgage hit as markets expect an ECB rate rise, with variable-rate loans most exposed. Business & Finance: Theon International published its H1 2026 report, reporting 35.4% revenue growth and an €325m syndicated financing facility coordinated by Alpha Bank.

Fuel Costs Watch: Cyprus consumer protection warns fuel prices could rise again, citing recent increases in petrol, diesel and heating oil, with government discussions on measures expected by Sept. 17. Jobs & Growth Signals: Cystat reports Cyprus employment up 1.7% year-on-year in Q2 2026, with the biggest gains in wholesale/retail trade and construction. Electricity Market Scrutiny: A call for an independent audit of Cyprus’ electricity value chain argues solar returns can’t be judged in isolation and urges a wider look at who benefits across the grid. Shipping Rules in Limbo: IMO talks in London ended without a new net-zero shipping text, pushing key MARPOL Annex VI details to further negotiations in November—keeping uncertainty high for Cyprus shipping. Maritime Cooperation: Cyprus and Bahrain sign an MoU to expand maritime safety, training, search-and-rescue and innovation, with joint working groups planned. Energy Investment Angle: Cyprus’ role as a strategic iGaming hub and local energy developments also feature, alongside coverage of Cyprus’ solar power economics. Regional Diplomacy: Herzog’s Sept. 10 visit to Cyprus highlights deepening Israel-Cyprus ties amid wider Eastern Mediterranean tensions. Finance & Banking Mood: UBS flags strong potential in Greek banks, relevant to Cyprus via Eurobank and Alpha Bank operations.

Regional Security & Energy: Cyprus, Greece and Egypt are set for a trilateral summit in El Alamein on Sept 8, with defence, energy cooperation and Turkey’s “revisionist” posture on the agenda. Electricity Interconnector Watch: Energy Minister Michalis Damianos says the Great Sea Interconnector is “progressing as planned” and will pass through Cyprus, while officials discuss costs and how to limit the impact on Cypriot consumers. Fuel Price Relief: Government talks are underway on extending measures to keep fuel costs down, with decisions due by Sept 17 and tax reductions expected to continue after Sept 18. Labour & Pay Policy: A minimum wage bill is headed to parliament by year-end, alongside plans for salary transparency and stronger collective bargaining. Worker Protection: Labour ministry moves to crack down on illegal employment. Agriculture Under Pressure: Farmers in the Chrysochous valley plan a road protest over irrigation interruptions, warning of irreversible damage to crops and the environment. Schengen Push: Cyprus’ Schengen bid is back on the EU agenda after President Christodoulides’ meeting with Antonio Costa, aiming for a political decision “as soon as possible.” Maritime Tragedy: The Kyrenia ferry disaster toll rises, with a 14th body recovered and 14 still unaccounted for as search-and-rescue continues.

Minimum Wage Push: Cyprus’ Labour Minister Marinos Mousiouttas says a minimum wages bill will go to Parliament by year-end, after legal review to align with EU rules, with salary transparency and stronger collective bargaining steps also planned. Energy Grid Tension: Nicosia is facing mounting pressure over its energy plans, with reports that the Great Sea Interconnector is losing support and opposition demanding official answers. Schengen Momentum: President Christodoulides’ push for a political decision on Cyprus’ Schengen bid is back on the EU agenda, with potential knock-on benefits for tourism, investment and business mobility. Ferry Disaster Fallout: After the Kyrenia-area FiloJet capsizing, the death toll has risen to 13 and 15 remain missing, as families demand answers over safety and regulatory gaps. Agriculture Under Strain: Farmers in the Chrysochous valley plan public action over irrigation disruption, warning the lack of water could hit crops and the local environment. Pensions Critique: A new pension reform assessment argues Cyprus’ social security changes are too low and unsustainable, with limited room to lift vulnerable people out of poverty. US-Cyprus Diplomacy: US ambassador-designate John Breslow has arrived in Cyprus to begin credentials with President Christodoulides, bringing a business-and-politics background to the role.

Energy & Grid Reform: A new debate is heating up around Cyprus’ electricity prices, with calls to “open the entire electricity bill” and commission an independent audit across the whole value chain—generation, fuel, renewables, networks, balancing, suppliers, regulated charges and investor returns—after disputes over solar park pricing. Offshore Gas Strategy: Cyprus’ “energy paradox” remains central: promising offshore gas sits alongside an isolated grid and rising limits on absorbing solar power, raising the question of how Nicosia can turn resources and export links into durable regional influence. Renewables & Regulation: Separate coverage highlights Cyprus’ growing renewables push and the need to clarify who produces, sells and sets prices in the RES market as the system struggles to keep costs down. Tech & AI Policy: Cyprus’ Computer Society submitted recommendations to strengthen the National AI Strategy 2032, urging clearer, measurable delivery rather than broad ambitions. Innovation & Property Tech: VC firm 33East backs Piney, a Cyprus-founded property operations startup expanding from Europe into the US, using Cyprus as a “proving ground.” Shipping & Safety: The ferry disaster off Kyrenia continues to unfold, with the death toll rising to 13 and 15 still missing as rescue teams locate the wreck. Diplomacy & Business Links: US ambassador-designate John Breslow has arrived in Cyprus to begin credentials talks, bringing an industrial-gases business background into the role.

Energy & Industry Policy: Cyprus President Nikos Christodoulides says the government is in talks with energy giants over new natural gas drilling blocks in the EEZ, aiming to complete the Vasiliko LNG terminal and build an alternative energy corridor with Egypt and Israel. Electricity Costs Debate: A local initiative to cut electricity prices by 20% has triggered a push to “open the entire electricity bill” and conduct an independent audit across the whole value chain. AI Strategy & Tech Sector: The Cyprus Computer Society submitted 33 recommendations to strengthen the National AI Strategy 2032, urging measurable, practical delivery. Renewables & Investment Signals: Cyprus-based VC 33East backs Piney, a property operations startup expanding from Europe into the US (Miami launch), highlighting Cyprus as a “proving ground.” Maritime Focus: SMM 2026 in Hamburg put maritime security and resilience front and centre, with emphasis on unmanned systems, sensors, cybersecurity and faster procurement. Cyber & Payments Risk: FTC action targets Nuvei over merchant screening failures tied to tech support scams, with Cyprus-linked acquiring bank registration mentioned.

Energy & Gas: President Nikos Christodoulides said Cyprus is in talks with energy giants to secure rights for new natural gas drilling blocks in its EEZ, aiming to build an alternative eastern Mediterranean energy corridor for Europe and push forward Vasiliko LNG plans. Infrastructure & Flood Resilience: Nicosia’s district authority (EOA) is set to start a €2.26m stormwater culvert repair under Digeni Akrita Avenue, reinforcing a 50-year-old structure to reduce flooding risk and protect road safety. Industrial Performance: Cystat reported Cyprus’ industrial turnover index rose 3.5% in June 2026, with manufacturing up 3.6% and strong gains in wood products and textiles. Construction Workforce: Employers’ federation Oseok says Cyprus is looking to Egypt and India to replenish construction labour as workers leave under the Syrian repatriation scheme. Payments & Fintech Compliance: FTC action against Nuvei highlights fraud risks in merchant processing, with the case noting Cyprus-linked acquiring bank involvement. Maritime Security & Tech: SMM 2026 in Hamburg put maritime security and resilient supply chains front and centre, spotlighting unmanned systems, sensors and cybersecurity. Innovation Ecosystem: Plug and Play Cyprus will host its first innovation expo in Limassol on Nov 11, showcasing startups from its inaugural cohort. EU/Policy for Business: EU leaders discussed new “own resources” and taxes for the next budget, a backdrop for competitiveness and migration talks that also featured Cyprus’ Schengen bid.

Immigration & Compliance: Economy and Labour Minister Jason Hayward says Cyprus lacks a clear framework to define and investigate “sham marriages” tied to immigration or other legal benefits, and proposes giving the registrar a referral route to immigration for assessment and possible investigation, with false unions risking refusal or revocation of benefits. EU Politics & Cyprus Problem: President Nikos Christodoulides met EU Council President Antonio Costa as Schengen and the Cyprus issue topped talks, with Costa stressing reunification as an EU priority and readiness to support UN-led efforts. Tax & Business Climate: Finance Minister Makis Keravnos rejects claims of a corporate exodus under the OECD Pillar Two 15% minimum tax, saying it targets only very large groups (over €750m revenue) and not every company. Energy & Inflation: An economist says Cyprus’ latest inflation rise is driven mainly by imported energy costs, with petroleum products and electricity leading the jump. Agri Pressure: Farmers at Strovolos market complained about water distribution and subsidy delays, urging the agriculture ministry to secure supplies and support. Automotive Imports: Geely will enter Cyprus in 2026 via KKS Mobility, launching three electrified models (E5, E2, and Starray EM-i). Payments & Fintech: SPAYZ.io will bring its Africa-focused payment localisation push to Forex Expo Dubai 2026, expanding local routes across multiple countries. Shipping Safety: Reports from the Kyrenia ferry disaster claim the crew “locked the doors” to the passenger cabin as water entered, while the captain and first mate reportedly jumped off early. Industrial Prices: Eurostat data shows Cyprus industrial producer prices rose 2.3% month-on-month in July, among the highest EU increases, largely energy-led. Tech & AI Governance: The Cyprus Computer Society calls for measurable delivery in the National AI Strategy 2032, pushing clearer accountability and practical implementation.