Official Governance Agenda 2025: Key reforms and policies

The President of the Republic, Nikos Christodoulides, has unveiled the Official Governance Agenda 2025, outlining over 80 policies and reforms aimed at modernising Cyprus. The programme is designed to enhance security, economic growth, digital transformation, and governance transparency, while also addressing key societal issues. Below is a summary of the major pillars and initiatives presented.

1. Economic growth and stability

A strong, resilient, and competitive economy is at the heart of Cyprus’s future, ensuring greater investment in healthcare, education, social welfare, culture, and sports.

• Tax reform: The 2025 tax transformation will increase household disposable income and support businesses by reducing tax burdens to boost competitiveness and exports.
• Pension reform: Measures will ensure dignified pensions, including the modernisation of the Social Insurance Fund’s investment policy and the strengthening of occupational pensions.
• Labour market enhancements: Policies include an improved minimum wage, expanded collective agreements, and incentives for Cypriots abroad to return.
• Housing initiatives: The government has allocated €75 million for housing policies, including subsidised land plots and financial aid for young homebuyers.
• Agriculture and primary sector development: The introduction of a financial tool for farmers will facilitate access to funding using state subsidies as collateral.

2. Digital transformation

To reduce bureaucracy and improve public services, Cyprus is undergoing a comprehensive digital transformation.

• 60 new digital services, including student grants, refugee ID renewals, and third-country employment applications.
• Expanded Digital Citizen platform, with additional documents such as minor identity cards and sports ID.
• Faster permitting: Building permits for up to two houses to be issued within 40 days, with further expansion to medium-scale developments.
• Quicker Social Insurance payments, ensuring that all benefits will be disbursed within 30 days.

3. Institutional reforms and governance modernisation

Reforming government operations is a key priority to restore trust between institutions and citizens.

• Public sector efficiency: Upgrading state institutions such as the Legal and Audit Services and modernising the governance of semi-government organisations.
• Judicial system modernisation: The establishment of a new Administrative Court of Appeal and the enhancement of arbitration mechanisms.
• Anti-corruption efforts: Legislative measures inspired by the FBI’s best practices and the establishment of a National Sanctions Unit.

4. Security and defence strengthening

Ensuring security for Cypriots is a fundamental goal across multiple sectors:

• Military & defence: Plans to upgrade air and naval bases, voluntary enlistment of women, and enhancement of reserve forces.
• Emergency response: The 112 response system will be upgraded to improve crisis management capabilities.
• Combating hooliganism: Legislation against fan violence will be reinforced to curb football-related incidents.
• Climate adaptation: Introduction of a Climate Law to reduce carbon footprint and address environmental challenges.
• Wildfire prevention: Deployment of 11 aerial firefighting units and automated fire detection systems across 12 industrial zones.

5. Expanding national influence and resolving the Cyprus Issue

The President reaffirmed efforts towards the resolution of the Cyprus problem and broader geopolitical engagement:

• Cyprus as an energy hub: Expansion of natural gas exploration, with key agreements expected in 2025.
• Strengthened diplomatic presence: The opening of new embassies and enhanced strategic partnerships with non-EU nations.
• EU Presidency 2026: Cyprus will assume the EU Council Presidency, promoting European integration.

Looking ahead: Vision for a transformed Cyprus

President Christodoulides emphasised that security, economic prosperity, and social well-being form the foundation of the 2025 governance plan. Cyprus is promised to enter a new era of progress, ensuring a stronger, fairer, and more inclusive future for all citizens.

Also read: DiCarlo to meet with Christodoulides and Tatar on February 10