AGP Executive Report

Cost of Living: Finance Minister Makis Keravnos called for more EU spending flexibility as energy costs rise. Diesel averages €2.022 a litre, while petrol averages €1.757. Party Politics: DISY faces growing internal tensions after Giorgos Pamporidis accused a newspaper publisher of pressuring him to quit the party’s presidential nomination race. Cyprus Talks: President Nikos Christodoulides says there is “no alternative” to resolving the Cyprus problem and will urge Turkish Cypriot leader Tufan Erhurman to restart negotiations at their meeting Tuesday. Energy Links: Greek Prime Minister Kyriakos Mitsotakis says the Greece-Cyprus electricity cable can proceed without concessions on Greek sovereign rights. Cyprus also plans an energy cooperation pact with Saudi Arabia. Innovation: The Cyprus Institute of Neurology and Genetics will lead healthcare AI work under PHAROS-CY, which aims to give researchers and businesses access to expertise and supercomputing. Sport: Hungarian freediver Zsófia Törőcsik set a women’s world record at 108 metres in Limassol.

Energy Links: Greek Prime Minister Kyriakos Mitsotakis says the electricity cable linking Cyprus with Greece can proceed without compromising sovereign rights. Cyprus is also set to sign an energy cooperation memorandum with Saudi Arabia on Monday, while talks with Israel over the Aphrodite gas field resume next week. Water Supply: Dam reserves have climbed to 35.6% of capacity, up from 11.9% a year ago, though they remain below levels recorded in 2022 and 2023. Migration: Deputy Minister Nicholas Ioannides says migration flows have fallen by 90%, describing management as a balance between human rights and state interests. Space Investment: Cyprus has committed €13.5 million to European Space Agency programmes through 2028, aiming to grow local research and technology businesses. Market Watch: Eight Cyprus Stock Exchange companies missed the deadline for publishing half-year financial reports; seven remain suspended from trading.

Housing Costs: Renting a two-bedroom flat in Limassol can consume up to 91% of an average salary. Cyprus salaries are about 54% higher than Greece’s, but the figures underline the strain facing local renters. Market Oversight: Seven companies missed the Cyprus Stock Exchange’s half-year reporting deadline; five remain suspended from trading. Separately, Israel’s TASE is targeting the CSE for a possible acquisition. Cyprus Issue: President Nikos Christodoulides briefed three party leaders without seats in parliament on the latest developments. Turkish Defence Minister Yaşar Güler accused the Republic of Cyprus of oppressing Turkish Cypriots and warned Ankara was monitoring its military cooperation with other countries. Turkish Cypriot Politics: Legislative and local elections are set for December 6. Business and Economy: Cyprus’s government surplus rose to €1.59 billion as tax revenues surged, while inflation reached a three-year high. Italy and Cyprus are also seeking new shipping and port investment at a Limassol forum.

Political Stakes: Disy leader Annita Demetriou has quit the race to become the party’s 2028 presidential candidate, leaving Averof Neophytou and George Pamboridis in contention. The European People’s Party says it will back whoever members choose. Cost of Living: Inflation reached 3.7 per cent in September, its highest level in three years, with housing and utility costs up 9.6 per cent and transport up 11.9 per cent year on year. Markets: Tel Aviv Stock Exchange is considering a bid for the Cyprus Stock Exchange as the state-owned bourse prepares for privatisation; a new owner could bring more capital and liquidity. Public Finances: The government surplus rose to €1.59 billion in the first eight months of 2026, or 4.1 per cent of GDP, as tax revenues climbed. Energy: Cyprus’s Kronos gas project is set to send gas through Egypt for processing and export to Europe, while US Secretary of State Marco Rubio says Washington will use diplomacy to advance the Greece-Cyprus electricity link. Business: Seventeen Cypriot companies met Greek counterparts at an Athens forum to explore partnerships; foreign-controlled firms already provide one in ten jobs in Cyprus and generate €4.76 billion in value added.

Regional Diplomacy: Cyprus, Greece and France discussed the Great Sea Interconnector and Cyprus’s Schengen bid at the MED9 summit. The €2 billion cable, intended to link Cyprus with Greece via Crete, could move closer to renewed seabed surveys. Cyprus Issue: President Nikos Christodoulides thanked MED9 leaders for reaffirming support for efforts to resolve the Cyprus problem, and said the island’s location and limited links to European energy and transport networks should be recognised in EU planning. Energy: Cyprus’s first offshore gas exports could reach Greece in 2028, with gas from the Kronos field set to be liquefied in Egypt before shipment to Europe. Economy: Property sales rose 14 per cent year-on-year in the first nine months, reaching 14,969 contracts. Finance Minister Makis Keravnos is also seeking fiscal flexibility and relief from energy costs at EU meetings in Luxembourg. Justice: Christodoulides says reforms must speed up court cases while protecting fair trials and judicial independence. Migration: Police arrested 42 people found to be living illegally in Cyprus; authorities say 7,239 people have been deported or repatriated this year.

Energy Costs: Finance Minister Makis Keravnos will press EU counterparts in Luxembourg for more flexibility to help households and businesses, including a tax break on heating oil. Cyprus is also seeking closer energy cooperation with Greece and Egypt to connect Eastern Mediterranean resources to European markets. Regional Security: A tanker linked to Cypriot shipowner Andreas Hadjiyiannis caught fire off Sochi after a drone-boat attack; all 23 crew were rescued and no pollution was reported. Higher Education: Marina Neophytou has become the University of Cyprus’s first female rector, winning Wednesday’s election with 214 votes. Public Health: Cancer has overtaken cardiovascular disease as Cyprus’s leading cause of death for the first time in 30 years. Experts urged stronger prevention, noting that Cyprus spends about 2% of its health budget on prevention, compared with a 4% EU average. Policing: The new organised-crime directorate is due to begin work on October 12, but police say the absence of legislation allowing phone interception remains a gap in investigations. Water Security: More than €200 million is planned for water infrastructure by 2030, including desalination, irrigation and reducing network losses.

EU Defence Innovation: Four of six Cypriot MEPs backed a €115m EU “Agile” programme to fast-track grants for emerging and disruptive defence technologies, while Akel’s Giorgos Georgiou voted no and Fidias Panayiotou abstained. Varosha Diplomacy: Government officials neither confirmed nor denied a report that President Christodoulides proposed opening Varosha under UN administration in return for EU-supervised operation of Famagusta port. DISY Presidential Race: DISY is set for a three-way contest for the 2028 nomination, with Averof Neophytou expected to join Annita Demetriou and Giorgos Pamboridis. Cyprus–Armenia Ties: President Vahagn Khachaturyan met Cyprus’ ambassador to Armenia, Michael Mavros, highlighting historic friendship and discussing cooperation across political, economic and educational areas. Smart Cities Research: Primetel joined the Metacities Excellence Hub project linking Cyprus, Greece and Bulgaria on digital technologies for smart cities, including digital twins and AI. Business & Tech Events: Invest Cyprus urged closer Cyprus–Greece innovation links at the BiG Innovation Forum, while an AI-in-practice event is set for 19 October at European University Cyprus.

Fuel Prices Watch: Cyprus retail fuel costs are “at reasonable levels”, with officials saying increases track global and EU trends rather than running out of control. Education Staffing Crisis: Unions warn that unless a decade-old hiring law is rewritten, schools could open in 2027 without enough teachers. Children’s Rights: The Children’s Rights Commissioner says children must not be used in political campaigns, after videos involving an MEP drew criticism. Local Governance & Identity: Acting Paphos mayor defends renaming Kemal Ataturk Street to “Memory and Hope Street”, framing it as reconciliation. Court Tragedy: A British father accused after a toddler fell from a hotel window pleads for no prison sentence at mitigation. Diplomacy: Cyprus’ foreign ties feature in talks from Slovakia’s support for UN-based solutions to new ambassador credentials received by Qatar’s Amir. Economy & Markets: CISCO tops CSE trading rankings in September; unemployment rises in September, driven by public administration and other sectors. Research & Innovation: Cyprus’ RIF joins a Japan forum on AI-era research funding and governance.

CySEC Investor Alert: Cyprus’ financial watchdog warned investors about six unauthorised websites offering investment or crypto-asset services, urging people to check the regulator’s register before dealing with any firm. Airport Privacy Debate: A European coalition is pushing for rules that keep biometric travel voluntary and privacy-safe, as Cyprus already uses facial recognition at Larnaca and Paphos airports. Construction Momentum: Famagusta’s licensing body says building approvals surged—646 permits processed in nine months, with September a record month for licensing directorate activity. Housing & Permits Data: Cystat reports June 2026 building permits up sharply year-on-year, with more homes planned and a big rise in total permit value. Energy & Prices: Eurostat data show Cyprus industrial producer prices rising as European energy costs climb, while industrial turnover growth continues. Weather: Cloud with local showers and isolated thunderstorms is expected today, with temperatures around 28C. Foreign Affairs: President Christodoulides said Cyprus-U.S. relations have “no limits,” highlighting Washington as a key partner on trade, defence and security.

Schengen Progress: Cyprus and the British bases have reportedly agreed to upgrade border checks at two crossing points to EU standards, while talks continue on Green Line movement. Energy Cable Tension: Greece says it will proceed with seabed surveys for the Cyprus-Crete Great Sea Interconnector despite Turkey demanding coordination and warning it could block activity. Banking Fallout: The state will reopen the 2013 bail-in reimbursement platform for eligible depositors/bondholders, with a new 2027 scheme planned. Markets Watch: CySEC suspended trading in four CSE-listed companies for failing to publish required financial reports. Household Pressure: Central Bank data shows low deposit returns and higher mortgage rates, while Cyprus’ current account deficit nearly doubled to €1.31bn in Q2. EU Funding Push: President Christodoulides says Cyprus expects €3.5bn in EU funds for 2028-2034 and highlights improved absorption. Business Exodus: Gunvor rebranded as Centalion and plans to move its corporate headquarters from Cyprus to Singapore. Foreign Policy: Cyprus’ FM Constantinos Kombos will visit the Philippines on Oct. 7, with sports cooperation and seafarer certificate recognition on the agenda.

Power Cable Row: Greece and Turkey are clashing over how to handle maritime surveys for the Great Sea Interconnector linking Cyprus to Europe, with Athens rejecting Turkish authorization while a technical compromise could still spark later diplomatic trouble. EU Economy: Eurostat data shows services drive more than half of the EU business economy value added, with Cyprus tracking the wider shift. Schengen Progress: Cyprus is close to meeting one Schengen hurdle, with talks pointing to upgraded checks at British base crossings, while a second issue on Green Line movement in EU law remains. RRF Cashflow: Cyprus is set to end its Recovery and Resilience Facility milestone submissions on a high note, having already received about 70% of its €1.02bn grants and expecting further payments in December. Finance & Markets: The Central Bank says sustainable debt is growing in Cyprus, though the market is still concentrated. Future Skills & AI: A Nicosia forum on Oct. 8 will focus on how AI and emerging tech are reshaping labour-market skills. Local Safety: Civil Defence updated evacuation coordination after the 2025 Limassol wildfire, including new radio links and revised community procedures.

RRF Payments: Cyprus is on track to receive €992m from the Recovery and Resilience Facility, with €120m paid after meeting recent milestones and an expected near-complete grant drawdown by December 2026. Schengen Progress: Consultations with the British bases point to tightened crossing checks for Schengen compliance, with a reported sharp drop in irregular crossings cited as part of the case. US-Cyprus Defence: US Ambassador John Breslow says the 2024-2029 defence roadmap is “going great”, citing upgrades at Paphos airport and the Cyclops cyber/border security training programme. Civil Defence Reform: After the 2025 Limassol wildfire, evacuation protocols were updated, including new radio communications and revised community coordination for 2026. Banking & Economy: Bank of Cyprus has been ranked among top performing banks in a Forbes/Statista list, while commentary warns that Cyprus’ focus on large fiscal surpluses could curb growth. Social Policy: New support for breast cancer patients includes a monthly allowance and free transfers to oncology centres, alongside calls for more targeted measures to tackle inequality. Business/Markets: Cypriot banks’ share prices have surged over two years, reflecting major valuation shifts in the sector.

Defence Debate: Cyprus’ defence minister Vasilis Palmas warned that rearmament and military equipment “should not” be used for pre-election politics, after the Independence Day parade showcased upgraded forces and new systems including drones and air defence. Presidential Campaign Watch: Government figures say it’s “too early” to discuss the 2028 presidential race, after Averof Neophytou and Annita Demetriou announced candidacies. Maritime Cooperation: India and Cyprus held the first India-Cyprus Joint Maritime Committee meeting in Limassol, covering education, investment and cooperation under the 2017 merchant shipping agreement. EU Budget Fight: Christodoulides signed a joint letter with 16 states urging the Irish EU presidency to protect Cohesion Policy and the CAP in the 2028-2034 budget talks. Social Inclusion: A new autism day centre in Strovolos is planned, with services for adults over 22 and support for families. Banking Procurement: The Central Bank of Cyprus launched a tender for insurance contracts starting with an initial three-year term. Economy & Business: Cyprus’ persistent price pressures and inflation remain in focus, alongside ongoing business updates including fintech and shipping.

EU Budget Push: Seventeen EU leaders, including Cyprus’ Greek Cypriot administrations, urged the Irish EU presidency to protect farm and regional funding, warning cuts to Cohesion Policy and the CAP would “weaken” the bloc. Cyprus EU Presidency: President Christodoulides signed a joint letter backing the MFF 2028–2034 negotiating box, stressing that cohesion and agriculture funding are key for balanced development. Central Bank of Cyprus: The CBC launched a three-year tender seeking insurance providers, with quality weighted at 70% in the selection. Autism Support in Strovolos: A new day centre for adults with autism (up to 30 people) is planned on state-owned land, with practical programmes aimed at families and social inclusion. Education & Internationalisation: University of Nicosia highlighted new English-taught programmes and global partnerships, while the University of Patras launched an English Medical Program attracting international students. Connectivity & Travel: Wizz Air announced a new year-round Larnaca–Madrid route, boosting Cyprus–Spain links. Heritage Conservation: EU-funded conservation works were completed on a Limassol mosque and churches in Kyrenia.

DISY Leadership: Cyprus’ main opposition DISY set the timetable for choosing its 2028 presidential candidate, with candidacies due Oct. 26 and an internal vote on Nov. 28, urging contenders to respect the party base’s verdict. Tourism Push: Nicosia’s tourism board promoted the capital in Athens under “Nicosia: Greece, we are waiting for you,” pitching culture, business links and transport connections to boost visitor flows. Health & Community: Europa Donna Cyprus held plans for its 22nd Pink Silhouette March in Nicosia, with Stella Kyriakides calling for prevention and treatment despite receiving care for gynecological cancer. Public Health Alert: A second bird at Nicosia’s Athalassa Park was reported with H5N1 after a goose case, but an expert said the risk to the public remains very limited. EU Budget Fight: Seventeen EU countries including Cyprus backed protecting agriculture and cohesion funding, pushing back against proposed large cuts. Economy Watch: Cyprus’ fiscal council warned against broad tax cuts to fight inflation, as persistent price pressures continue.

EU Budget Standoff: Seventeen “cohesion-friendly” countries, including Cyprus, Italy and Greece, urged EU leaders to protect agriculture and cohesion funding ahead of the 2028-2034 budget talks, warning cuts would weaken the bloc. Children’s Rights Clash: Turkish Cypriot leader Tufan Erhürman and President Erhürman both rejected linking children’s citizenship and mixed-marriage issues to politics, saying visa and discrimination barriers can permanently cost scholarships and opportunities. EU Court Pressure on Waste: Nicosia’s EOA accused the state of delays after Cyprus was referred to the EU’s Court of Justice over waste management failures, citing landfill waste and insufficient facilities. Economy Watch: Cyprus retail sales growth eased to 7.0% year-on-year in August, while the current account deficit widened to €1.3bn in Q2 2026. Energy & Tensions: Turkey issued a NAVTEX for the Oruç Reis survey for a gas pipeline linking Turkey to northern Cyprus, while Greece says no permission is needed for the Greece-Cyprus-Israel electricity cable. Finance & Business: CySEC launches a nationwide investor protection campaign for World Investor Week, and Eurobank unveiled a €2m autism day centre design for Strovolos.