Energy challenges and renewable goals
President of the Republic, Nikos Christodoulides, addressed energy costs and the utilisation of natural gas during a roundtable discussion with business leaders at the 16th Nicosia Economic Congress on Holy Wednesday. He highlighted that talks with ENI and TOTAL aim to secure an agreement for Cyprus gas exploitation by 2027.
On the energy sector, Christodoulides noted: “We are not satisfied with current results. We are working on a plan to increase renewable energy storage, aiming to raise the share of renewables in our energy mix.” Currently, renewables account for 24% of the country’s energy, up from 19% at the start of his term, but still below potential in a nation with 320 days of sun annually.
Natural gas exploitation
Regarding natural gas, the President stressed that despite the first discovery in Cyprus’ Exclusive Economic Zone in 2011, exploitation has not yet begun. “We will engage with ENI and TOTAL to ensure an agreement before the end of April for the first utilisation of Cypriot gas within 2027,” he said.
International investment outreach
Christodoulides outlined the government’s plan for targeted international engagement, emphasising India, the United States, and Kazakhstan. Scheduled visits include Mumbai and New Delhi from 20–23 May, Kazakhstan from 2–4 June, and a US mission to further position Cyprus as an investment and technology hub.
He stressed that Cyprus will not present itself as a “supermarket” for investment in all sectors, a mistake of the past, but will focus on strategic areas.
Economic growth and fiscal stability
The President highlighted Cyprus’ strong economic performance, with one of Europe’s highest growth rates, an A-rating from international agencies for the first time since 2011, and unemployment below 5% for the first time since 2008. Public debt stands at 55% of GDP and is declining.
This fiscal strength allows the government to implement support measures, such as the recent €200 million package responding to global developments. Christodoulides stressed that a strong economy is essential for effective social and defence policies and noted ongoing diversification beyond tourism and services, highlighting technology, higher education, and shipping.
Social investment and strategic planning
The President outlined increased social spending, including €150 million for public hospitals, €300 million for housing policy, and expansion of full-day schools. He emphasised aligning education with labour market needs, particularly through technical high schools.
He also noted Cyprus’ need for stability and predictability in an unpredictable international environment, citing ongoing crises from Ukraine to the Middle East, and underlined that the government has effectively managed these challenges since taking office on 1 March 2023.
Christodoulides concluded with optimism about Cyprus’ economic future: “We have solid foundations, a clear plan, and I am confident that the days ahead will be even better.”
Business perspectives
Business leaders echoed the need for strong investor support and modernisation of the banking sector. Key executives from Alpha Bank Cyprus, ECOMMBX, KPMG, Laiko Cosmos Trading, and Mastercard discussed the resilience of services, challenges in retail, and the importance of fintech and digital payments.
Also read: Seven in ten Cypriot households face financial difficulties in 2026
For more videos and updates, check out our YouTube channel
