AGP Executive Report

Cyprus Settlement Talks: President Nikos Christodoulides says “important developments” could follow UN-led Cyprus problem talks during the UN General Assembly week, with a pivotal meeting with UN Secretary-General António Guterres on the agenda. Inflation Watch: Cyprus posted the EU’s third-highest inflation rate, with harmonised inflation jumping from 4.4% to 5.2% in August as price pressures spread across sectors. Energy & Infrastructure: Diko leader Nicholas Papadopoulos calls for Finance Minister Makis Keravnos to resign over objections to the Great Sea Interconnector, arguing the project boosts geostrategic power and energy adequacy. Business & Labour Support: The Cyprus Chamber of Commerce and Industry (Keve) will host a Nicosia round-table on support for workers with care duties, including a new care services subsidy scheme. Public Safety: Cyprus police warn of a surge in phishing texts impersonating the police, urging residents not to click links or enter personal or banking details. EU Digital Rules: The EU’s proposed age-verification approach for children on social media is set to involve Cyprus among pilot countries. Maritime/Industry: Halliburton won an integrated contract for Eni’s Cronos ultra-deepwater development offshore Cyprus in Block 6 of the Cyprus EEZ. Food Security: Cyprus food safety is being tested by drought, foot-and-mouth disease and import pressures, raising questions about resilience.

Inflation Watch: Cyprus posted the EU’s third-highest inflation rate as harmonised prices jumped from 4.4% to 5.2% in August, with monthly prices up 1.5%, squeezing household budgets and hitting SMEs. Cost of Living & Energy: Fuel prices are expected to rise further, with gas station owners and consumers calling for targeted support, especially for heating oil. Public Finance: Finance Minister Makis Keravnos presented the 2027 budget of €11.1bn, projecting growth at 2.9% and a falling debt ratio, while warning uncertainty remains. Cyprus Talks at the UN: Government spokesman Konstantinos Letymbiotis said efforts aim to “transform Cyprus into a normal, modern, European state,” with President Christodoulides set for key UN meetings in New York. Cybercrime Alert: Police warned of a surge in phishing texts impersonating the force, pushing links to pay fake fines and steal banking details. Bicommunal Solidarity: Volunteers joined a World Cleanup Day effort in Nicosia’s old town, backing a message of cooperation across the Green Line. International Focus: Research Deputy Minister Nicodemos Damianou said Cyprus is emerging in the European space ecosystem after a France space declaration and new incubation initiatives. EU Rules on Kids Online: The EU’s proposed age-verification approach for children under 13 is rolling out via member states, with Cyprus named among pilot countries.

Fuel Costs & Farming Support: Cyprus approved €1.5m in EU-funded emergency schemes to help farmers hit by higher diesel and fertiliser prices linked to the Middle East crisis, with applications opening in November. Budget & Credit Outlook: Finance Minister Makis Keravnos presented the 2027 budget (€11.1bn) while S&P upgraded Cyprus’ sovereign rating to A with a positive outlook, citing resilience and services exports. Energy Prices Pressure: Gas station owners and consumers’ groups warn fuel prices could rise further, pushing calls for targeted state measures and tighter support for vulnerable households. Politics & Advertising Rules: A Direct Democracy MP tabled an amendment to ban outdoor billboards tied to foreign election campaigns after controversial Israeli election ads appeared in Cyprus. Cyprus–Israel Defence Ties: The Israeli embassy says Cyprus is an increasingly important defence partner and points to scope for joint projects and technology cooperation. EU Digital ID Rollout: Cyprus is bidding to upgrade its public service app to prepare for EUDI Wallet integration as EU deadlines collide with uneven readiness across member states. Community Building: A bicommunal football match in Nicosia brought Turkish Cypriot and Greek Cypriot amateur clubs together under an EU confidence-building initiative.

Sovereign Credit Boost: S&P upgraded Cyprus’ long-term rating to A (from A-), keeping a positive outlook, citing resilient growth, fiscal surpluses and falling debt. EU Budget Fight: Nicosia drew “red lines” over proposed EU “New Own Resources”, rejecting parts tied to ETS revenue and a flat-rate contribution from large EU firms. Farm Relief Package: Cabinet approved €1.5m in EU-funded emergency aid for farmers hit by higher fuel and fertiliser costs, with applications opening in November. Justice & Prisons: The new Central Prison will be built in Agios Sozomenos (not Mathiatis), chosen for lower costs and faster timelines. Bicommunal Step: A bicommunal football match in Nicosia brought Greek Cypriot and Turkish Cypriot amateur teams together under an EU confidence-building initiative. Border Tech Friction: EU countries including Greece and Cyprus-linked travel corridors face uneven EES rollout, with some states pausing biometric checks at busy crossings. Weather Watch: Cyprus braces for scattered storms mainly over mountains and inland, with temperatures up to 33C inland.

Lebanon Support Talks: Lebanese President Joseph Aoun met French and Jordanian leaders in Paris to line up international backing for the cash-strapped Lebanese army as UNIFIL’s mandate nears expiry, with Cyprus among the participating states. SME State Aid Speed-Up: Cyprus’ State Aid Control office and the Research and Innovation Foundation agreed a tighter cooperation framework, pushing earlier checks and wider use of GBER to speed up compatible support for SMEs. Energy Storage Focus: Cyprus Institute president Stavros Malas told officials that diesel and natural gas can’t be the long-term answer, urging investment in sustainable energy storage alongside renewables via the PROTEAS research facility. Cyprus Talks Deadlock: UN chief Antonio Guterres said conditions for an expanded 5+1 Cyprus conference are not met, after a Christodoulides–Erhürman meeting that produced “good” engagement but no breakthrough. Foreign Election Billboards: A Direct Democracy MP tabled a bill to ban outdoor ads used for campaigns in foreign elections, sparked by Israeli candidate Gadi Eisenkot billboards targeting Israeli visitors in Cyprus. Groundwater Under Pressure: Investigative reporting says the state can’t accurately track how much groundwater is pumped, with monitoring gaps and poor aquifer conditions linked to nitrate pollution and seawater intrusion. EU Kids Act: The European Commission proposed restricting social media access for children under 13, using a free EU age-verification app—Cyprus is among pilot participants. Fisheries Push: Parliament’s speaker urged stronger EU support for Cypriot fishermen ahead of an EU policy review, citing falling fish stocks and the need for targeted measures.

EU Fisheries Support: House speaker Annita Demetriou urged stronger EU backing for Cypriot fishermen after meeting Fisheries Commissioner Costas Kadis, calling for a more targeted review as fish stocks face mounting pressure. Social Media Rules: The European Commission proposed the “Kids Act”, banning children under 13 from social media and using a Cyprus-involved age-verification app to enforce it. Nicosia Housing: Nicosia’s historic Faneromeni area is set to gain 200 new student rooms, with the municipality aiming for about 1,000 student beds by 2029. Tourism & Security: Cyprus is among participants in Greece-led Medusa 15 drills in Crete, where tourists watched drone and special-forces operations from nearby beaches. Tech & Skills: The Paphos Chamber of Commerce leads an Erasmus+ project to train youth in blockchain, AI and Web3, with further events planned in Cyprus and Spain. Transport & Fuel Costs: The finance ministry said it is monitoring rising fuel prices, while Cyprus’ lottery surplus fell to €7.2m in 2025 and a €1.23m modernisation tender is underway.

Cyprus Economy Watch: The University of Cyprus’ Composite Leading Economic Index shows a return to marginal growth in August, with domestic indicators like property sales, credit card spending, retail volumes and temperature-adjusted electricity production helping offset weaker external conditions. Tourism & Policy: August tourist arrivals fell 3.3% year-on-year to 581,880, while Cyprus’ property market stays strong but faces structural weaknesses and rising costs, prompting calls to revise planning frameworks. EU & Cyprus Politics: Six Cypriot MEPs criticised European Commission President Ursula von der Leyen’s State of the Union for not mentioning Cyprus, arguing the EU must show it can defend security and borders. Diplomacy: President Nikos Christodoulides said new ideas and confidence-building measures discussed with Turkish Cypriot leader Tufan Erhürman could lead to positive developments, possibly as soon as next week. Education Support: The University of Cyprus renewed a €20,000 scholarship agreement with the Sievert Larsson Scholarship Foundation for students facing financial difficulties. Banking Reminder: Cyprus banks will close on Thursday, October 1, 2026 for Independence Day, with digital services expected to remain available.

Aviation Safety: Cyprus MPs heard that the Nicosia Flight Information Region is running about 50 air traffic control positions short of the authorised 140, with 15 roles being filled and upgrades planned by 2030. Church Fees: Strovolos church parking is ending free access, with drivers set to pay €2 a day from September 21 at the Church of Saint Barnabas and Saint Makarios. Social Media Rules: Cyprus plans to submit a bill in December to set a minimum age of 15 for social media accounts, with enforcement handled by platforms using an EU age-check tool via the Digital Citizen app. EU Politics: EU leaders are reacting to a Canada “associate membership” proposal, with officials and parliament welcoming the idea of closer ties. Cyprus Economy & Finance: The Central Bank says Cyprus banks’ non-performing loan ratio held at 1.6% at end-June, while provisions coverage rose to 64.9%. Tech & Business: CITEA and Oev met to push faster AI adoption and digital transformation across Cyprus’ economy. Energy: Halliburton won a well construction and completion contract for Eni’s Cronos deepwater gas project offshore Cyprus.

Cyprus Budget Watch: The government has approved the €11.1bn State Budget for 2027 and the Medium-Term Fiscal Framework 2027-2029, aiming to keep a surplus, cut public debt, and push the green transition and digital transformation. Cyprus Diplomacy: Nicos Tornaritis has been appointed Special Political Envoy for the Cyprus issue in Asia and Africa, tasked with targeted contacts across the region. Energy & Regional Politics: A Cyprus–Lebanon undersea electricity cable is being discussed, but Turkish Cypriot energy officials say it’s “not possible” without Turkey’s permission, citing sovereignty and maritime notice rules. Tech & Skills: Oev and TechIsland will sign a cooperation deal on technology, innovation, entrepreneurship and skills development, building on TechIsland’s wildfire-focused initiative. EU Security: Von der Leyen outlined a new EU security architecture, including a proposed European Security Council and emergency protocol ideas. Court Case: A British father charged after his three-year-old son died in a fall from a Paphos hotel window is due back in court as defence seeks a suspension of prosecution. Europa League: Omonia Nicosia opened their Europa League campaign with a 1-0 win over Celta Vigo, while Cyprus fans also watched other league-phase matches.

Environment & Land Use: About 30% of Cyprus is now in the Natura 2000 network, with 72 protected areas designated, as the Agriculture Ministry outlined priorities including resilient forests, circular green growth and €25.5m for modern forest protection. Education & Public Services: MPs and parent groups demanded a strict timetable to ensure school air conditioners are installed and actually switched on, after some units were left idle. Food Safety & Cross-border Crime: Authorities in the north seized around six tonnes of meat allegedly smuggled from government-controlled areas, including carcasses with alleged fake inspection stamps; investigations continue. Labour & Cost of Living: The Finance Ministry put hourly-paid workers’ demands at about €50m over three years as a strike is set for Thursday, with the biggest dispute an 8% pay rise for hourly-paid government staff. Health & Regulation: The Cyprus Medical Association said it will audit doctors in unlicensed plasmapheresis centres and launch an awareness push against “charlatan” clinics. EU Politics: Cypriot MEPs pressed the Commission to clarify whether any Turkish aggression against Cyprus would trigger immediate EU defence action. Diplomacy: President Christodoulides appointed Nikos Tornaritis as special envoy for the Cyprus problem across Asia and Africa. Sports: Omonia kick off their Europa League campaign at GSP Stadium against Celta Vigo.

Circular Economy Act: EU environment and climate ministers back a Circular Economy Act expected to become law in 2026, aiming to cut waste, remove barriers for circular business models and boost competitiveness. Weather Watch: Cyprus heads into a shift from summer as Wednesday stays hot but Thursday brings more cloud, showers and possible thunderstorms. Energy Links: Cyprus and Lebanon hold their first technical meeting on a feasibility study for a subsea electricity interconnection, with the World Bank financing in two phases. Finance & Banking: Cyprus’ new credit scoring system hits two months, with 986 users accessing data since July 15; youth employment remains high but independence is delayed. Cyprus Politics/Rule of Law: The Independent Authority Against Corruption expands its “black van” probe, including scrutiny of the Assistant Attorney General. EU Diplomacy: EU envoy Raffaele Fitto is set to travel to Athens and Ankara for Cyprus talks, while UN envoy Maria Angela Holguin prepares for New York. Business/Markets: FXBO partners with Overchain to let forex brokers accept stablecoin deposits and convert via existing banking rails. Corporate: Vassiliko Cement board meets Sept. 24 to discuss an interim dividend. Regional Humanitarian: House refugee committee hears unaccompanied child evacuees to Greece may have exceeded 5,000.

Energy & Infrastructure: MPs demanded a clear timetable for the stalled LNG import project at Vasiliko after touring the site, as Defa/ETyfa extended by one month the deadline for binding offers on remaining works. Energy Costs & Regional Projects: President Nikos Christodoulides said Cyprus will pay €25m for the Great Sea Interconnector once a Navtex is issued for seismic surveys, insisting there is “absolutely no friction” with Athens. Public Safety: Hourly-paid government workers will strike on Thursday, leaving beaches across Cyprus without lifeguards; the interior ministry urged extra caution. Justice & Accountability: A former minister failed to declare about €2.4m in assets in required statements, with Parliament’s institutions committee now examining whether it was false or misleading. Cyprus Problem Diplomacy: An EU lawmaker urged the International Criminal Court to intervene over alleged war crimes and crimes against humanity tied to Turkey’s actions on the island. Local Governance & Community: Laou Laou returns car-free to Ayioi Omologites in Nicosia on Sunday, with street games, music, markets and family activities as part of European Mobility Week. Business & Markets: The CSE will remove the special “S” marking from Meditrina shares from September 16 after publication of its 2025 annual report.

Cyprus Talks: President Nikos Christodoulides says Nicosia is stepping up preparations ahead of the UN General Assembly, after a call between UN chief António Guterres and his Cyprus envoy Maria Angela Holguín, with the aim of paving the way for a resumption of negotiations. Digital Economy: Lebanon signed the Digital Cooperation Organisation (DCO) Charter, opening the door to full membership and boosting new digital ties with Cyprus and other DCO states. Finance & Credit: Cyprus’ new credit scoring system has been live for two months, with 986 borrowers and legal entities accessing their data, as Artemis Credit Bureau reports progress on the scoring infrastructure. Regulation & Cyber Resilience: CySEC reminds financial entities to submit their DORA ICT fee self-categorisation form by Sept. 15, warning late submissions could breach requirements. Business Fraud: A Limassol firm lost €105,000 after scammers hijacked a supplier email and redirected a bank transfer, with police urging businesses to verify unexpected payment requests by phone. Digital Innovation: DiGiNN says it has supported hundreds of organisations and 1,500 professionals to accelerate Cyprus’ digital transformation, including testing services and digital maturity roadmaps. Crime Update: An Irish man linked to a Cyprus murder-for-hire plot remains in custody while most co-accused suspects have been released and deported.

Limassol Wildfire Fallout: Nearly 40% of compensation applications for damage from last year’s devastating Limassol wildfire have been rejected, with 536 approved and 327 denied; €15.3m has already been paid and an objections process has led to 27 approvals and 35 denials. US Ties: Foreign Minister Constantinos Kombos met new US ambassador John Breslow in Nicosia to push forward Cyprus–US cooperation across security, defence, energy, law enforcement and regional stability. Workplace Safety: Etek is calling for an urgent safety review after a fatal Peyia labour accident, stressing that health and safety must be built into projects from the start, not treated as paperwork. Public Spending Scrutiny: The cost of new premises for the attorney-general’s office has jumped to €68m under a new tender, up from €45m in 2023, with critics pointing to similar specifications but a €23m price increase. Golden Passport Trial Delayed: Cyprus’ golden passport case was set to start Monday, but prosecutors added 25 charges and hearings were pushed back. Water Security Plan: Cyprus is pressing ahead with four desalination plants for a combined 180,000 cubic metres a day, alongside extra irrigation releases this year. Labour Action: More than 11,000 hourly-paid public workers are set to strike Thursday over pay and conditions. EU Travel Rules: The European Commission is mulling revisions to Schengen short-stay visa rules, including possible fast-track facilitation for trusted business travellers. Regional Search Effort: A Turkish research vessel has begun deep-sea operations off Kyrenia to search for 14 missing passengers after a ferry disaster. Tech & Property: A new Cyprus-Greece property development software platform, Tektor, has launched to connect build, sell and post-handover management in one system. Cybercrime Warning: Police say online fraudsters are targeting people with a new Cyprus co-op bank share scheme.

Court Case: A British father accused of “recklessly” causing the death of his two-year-old son after a 33ft fall from a Paphos hotel window has been ordered to return to Cyprus by Sept. 14 or face arrest, with a possible four-year jail term. Housing & Planning: Interior Minister Constantinos Ioannou says more than 4,100 homes are expected to enter the market in three years via incentive plans and “built to rent,” including 1,142 affordable units and progress on state-land affordable schemes. Energy: Energy Minister Michalis Damianos backs the Great Sea Interconnector but warns it could raise electricity prices, saying extra EU or other funding may be needed if costs climb. Migration: Cyprus reports irregular arrivals down 92% from 2022 peaks as it shifts toward labour needs, with faster asylum processing and more returns. Business & Trade: Bahrain and Cyprus chambers discuss boosting economic and trade ties. Justice: A woman was remanded over a Nicosia car arson case from May, after police said the fire was deliberate. EU Law: The CJEU rules that public access to shareholder personal data must be limited under GDPR, rejecting unrestricted disclosure without conditions.

Israeli election campaign in Cyprus: Hebrew-language billboards urging Israelis to vote in October 27 have sparked anger in Larnaca and wider Cypriot media, with calls for rules banning political advertising by parties campaigning abroad. Court and public safety: A 25-year-old woman was remanded for four days over a Nicosia car arson case from May, while police also arrested 39 people in a nationwide sweep against illegal residents. Energy and costs: Energy Minister Michalis Damianos says Cyprus backs the Great Sea Interconnector (GSI) but is pressing for proof it won’t unduly raise electricity prices for consumers, with an EIB study expected by year-end. Local economy and agriculture: Emergency aid is being rolled out for winegrowers hit by downy mildew, with damage declarations open until September 21. Migration shift: Cyprus says irregular arrivals have fallen 92% from the 2022 peak as it pivots from crisis management to meeting labour needs. Business ties: The Bahrain-Cyprus Chamber of Commerce meeting focused on boosting trade and investment links between the two business communities.