AGP Executive Report

EU Transport & Maritime Agenda: Cyprus’ EU Presidency pushed forward shipping and ports conclusions in Luxembourg, with ministers also debating cleaner mobility, supply-chain resilience and decarbonisation beyond 2030. Ukraine Funding: The EU is set to release a first €9.1bn tranche under the Ukraine package, with €5.9bn for defence and €3.2bn for budget support, while Kaja Kallas said the defence money will be used for drones. Payments & Compliance Tech: Cyprus-based FXBO integrated IDWise to strengthen identity verification, fraud prevention and AML for brokers across complex markets. Finance Leadership: Cyprus Finance Minister Makis Keravnos heads to Luxembourg for Eurogroup and chairs Ecofin, with discussions spanning euro-area macro-fiscal developments and EU technological autonomy. Energy Diplomacy: Energy Minister Michalis Damianos highlighted Cyprus’ role in Eastern Mediterranean energy cooperation and backed an “Eastern Mediterranean energy centre” after talks in Washington. Maritime Connectivity Deal: Eutelsat and Tototheo Global signed a partnership to distribute low-Earth-orbit connectivity for maritime and government users, targeting Greece and Cyprus. Local Business Moves: Demetra Holdings bought back 16,310 own shares at €1.65 each as part of capital management. Water Crisis Protest: Mazotos residents are challenging an €85m desalination plant approval, calling it an environmental disaster and seeking a court suspension. Travel & Trade Links: Air Astana launched seasonal flights to Larnaca from Astana and Almaty, while a Lebanon–Cyprus ferry return was delayed again to mid-June.

Eastern Mediterranean Energy: Egypt urged the Eastern Mediterranean Gas Forum to restart talks on developing Palestinian offshore gas, framing it as a route to economic recovery for Palestinians, while Cyprus’ energy minister also pushed for deeper regional cooperation on gas plus hydrogen, power interconnections and renewables. EU Finance Leadership: Cyprus’ finance minister Makis Keravnos will chair the Ecofin Council in Luxembourg, with ministers set to discuss euro-area fiscal and macro developments, IMF assessments, EU energy security and technological autonomy. Maritime Business: Columbia Group said its fleet under local management for Greek clients is nearing 100 vessels as it expands via its Athens unit, with Cyprus shipping officials attending Posidonia-linked events. Banking & Markets: Eurobank confirmed its €258.67m 2025 dividend details; Demetra Holdings bought 16,310 own shares in a new buyback tranche. Corporate & Governance: Cyta held a forum on responsible governance, focusing on turning board oversight and values into practical accountability. Local Economy & Data: Cyprus’ trade deficit widened to €3.05bn in Jan–Apr 2026 as imports rose and exports fell, while electrified vehicles kept gaining share in new car registrations. Real Estate Investment: Easternmed completed a €100m Brussels office deal for The Muse, set to be leased to the European Defence Agency. Consumer & Regulation: Health Services warned delivery platforms over dirty or damaged food boxes and improper storage of personal items with orders.

EU Ukraine Support: EU officials say the €90bn Ukraine loan is ready to roll out, with the first €5.9bn tranche this month aimed at drones, while Kaja Kallas flags more than 80 proposed sanctions listings targeting Russia’s war economy. Cyprus Borrowers Under Pressure: Markets are pricing further ECB rate hikes, raising the odds of higher repayments for Cypriot households on variable-rate loans. EU Funding for Cyprus: Cyprus is set to receive about €800m from 2028-2034 for migration, security and border management, with 2021-2027 funding already approved at €304m. Housing & Construction Costs: Building a home is getting pricier as construction materials jump—steel, iron and aluminium up sharply—pushing developers to raise new-build prices. Tourism Pricing: Cyprus short-term rental rates are climbing into summer demand, with July-August prices up about 32% year-on-year. Trade & Investment: Cyprus signs a tax deal with Kyrgyzstan to cut double taxation and improve certainty for cross-border business. Food Safety: Authorities say food safety checks are working after the Limassol wedding poisoning concerns, with non-compliance rates falling in 2025. Business Cooperation: Nine bi-communal partnerships win €500,000 at the Stelios awards in Nicosia, spotlighting trust-building between entrepreneurs.

EU Defence Talks in Nicosia: Cyprus says aircraft carrying EU defence ministers from Greece, France and the Netherlands faced radio interference and were shadowed by Turkish F-16s as they flew in for an informal EU Defence Council meeting; Turkey denies harassment and says its jets operated within TRNC airspace. EU Sanctions & Naval Enforcement: EU foreign policy chief Kaja Kallas says the bloc has expanded IRINI to inspect Russia’s “shadow fleet” vessels under updated rules, while also using a new freedom-of-navigation sanctions regime to target Iran-linked disruption in the Strait of Hormuz. Ukraine Funding Push: The EU plans to disburse a first €9.1bn tranche from its €90bn Ukraine package, with €5.9bn earmarked for drones, as ministers meet in Cyprus. Cyprus Banking Pressure: The Central Bank of Cyprus warns deposit-rate transmission from ECB moves remains weak, with Cyprus deposit rates still the lowest in the eurozone—raising pressure on savers and borrowers ahead of an expected ECB rate hike. Corporate Tax Reform Guidance: C. Savva & Associates outlines how Cyprus’s 2026 corporate tax changes (12.5% to 15%) and dividend-related adjustments affect cross-border investors. Nicosia City Centre Plan: Etek unveils a roadmap to revitalise Nicosia’s centre, calling for a delivery office and faster, more measurable implementation. Business & Community: Nine bi-communal business partnerships share €500,000 at the Stelios awards, highlighting cooperation between Greek and Turkish Cypriot entrepreneurs. Trade Signals: Cyprus beer deliveries fell 2.4% in May, driven by a 31.3% drop in exports. Fintech Spotlight: Nicosia-based Mercuryo claims 60th place in Sifted’s Southern Europe fastest-growing startups ranking, citing rapid payments growth.

Retail Watch: Cyprus retail trade volume fell 1% in April 2026 after small gains in February and March, with food sales up but non-food and automotive fuel down, according to Eurostat. Coastal Policy Debate: A new report questions Cyprus’ growing reliance on breakwaters to fight erosion, warning that protecting one beach can shift the problem down the coast. Business & Culture: The High Commissioner of Cyprus used the Cypriot Wine Festival & Business Expo 2026 to frame wine as both heritage and an economic driver, highlighting modern wineries and Commandaria’s global reputation. Trade Links: Cyprus and Uzbekistan held talks in Tashkent focused on expanding trade and investment, plus transport and logistics links and business-to-business contacts. Security Cooperation: Greek authorities arrested a 37-year-old Palestinian in Crete over an alleged Hamas-linked plot, with investigators citing links to suspects detained in Cyprus and seized electronics and materials. Public Health: Cyprus’ state lab confirmed salmonella from chicken à la crème (plus other bacteria in rice) behind a Limassol wedding food-poisoning incident that sickened 70-plus people.

Hamas-linked security crackdown: Greek police arrested a 37-year-old Palestinian man in Crete over an alleged plot to attack an Israeli cruise ship, with Greek investigators citing links to four suspects detained in Cyprus and training allegedly received in Malaysia. Public health: Cyprus state lab confirmed salmonella in a chicken à la crème batch tied to a Limassol wedding mass food poisoning case that sickened 70+ people and hospitalised 21. Trade & investment ties: Cyprus and Uzbekistan held talks in Tashkent focused on expanding trade, investment, and transport/logistics links, with both sides also discussing business-to-business cooperation. Finance & markets: ECB chief Christodoulos Patsalides argued for joint European debt to create a common safe asset, while Cyprus’ central bank chief framed the case as timely amid geopolitical and economic pressures. Energy costs: A fuel-price update shows Cyprus among the higher-cost EU markets for both gasoline and diesel, underlining how Middle East shipping risks are feeding into household budgets. Crypto policy watch: Greece is moving toward a 15% flat tax on crypto capital gains, positioning itself as more predictable than before. Business & tech: Cyprus-based Tototheo and Eutelsat signed a partnership for maritime, enterprise and government connectivity, adding to the island’s push in digital services. Culture & tourism: Chinese Film Week returns to Cyprus with screenings in Nicosia and Limassol, marking diplomatic milestones and featuring a premiere by Cypriot artist Marios Joannou Elia.

EU Capital Markets Oversight: ESMA chief Verena Ross and CySEC chair George Theocharides push for stronger, more consistent EU supervision as markets get more cross-border and tech-driven, with Cyprus positioned as a key player in the new capital-markets architecture. Labour Mobility & Enforcement: European Labour Authority executive Cosmin Boiangiu warns that fairness must keep up with AI, shortages and undeclared work, with Cyprus on the radar for coordinated action. Travel & Tourism Risk: The US has downgraded Cyprus from “Reconsider Travel” to Level 1, while keeping an “armed conflict” note and warning of possible flight disruptions—good news for summer visitors. Pay Transparency Deadline: Cyprus is among EU states missing the pay transparency directive deadline, with implementation delayed to 2027. Student Housing Funding: MyStudentFlat raised €200,000 in two weeks via Crowdbase to scale student accommodation in Cyprus and Greece. Security & Terrorism Cases: Cyprus police continue a classified investigation into arrests of Palestinian suspects linked to alleged plots against Israeli targets, with remand extensions expected. Social Enterprise: True Heart Café in Nicosia opens as Cyprus’s first social enterprise employing people with autism, aiming to turn inclusion into a sustainable business.

Public Opinion on Cyprus Problem: A new study finds “more overlap than expected” between Greek Cypriots and Turkish Cypriots on what the other side should do to ease daily life under non-settlement conditions, with focus groups in several towns and follow-up bicommunal sessions. Pay Transparency Deadline: Cyprus is among the EU states missing the 7 June deadline to transpose the pay transparency directive, according to ETUC research, raising pressure on employers and policymakers. Student Housing Funding: MyStudentFlat has raised €200,000 in its first two weeks via Crowdbase, targeting up to €500,000 to expand organised student accommodation in Cyprus and Greece. Construction Watch: The new Cyprus Archaeological Museum faces about a 13-month delay, with delivery now pointing to late 2027. Cost Pressures: Cyprus construction costs climbed 10% in two months, driven by higher energy prices, geopolitics, and emissions allowance costs. Business & Tech: Eutelsat and Cyprus-based Tototheo Global signed a partnership to expand OneWeb LEO connectivity for maritime, enterprise and government needs. Banking/Finance: Cyprus-based brokerage boosts its financial safety under regulator pressure. Security: Police continue a classified investigation into arrests of four Palestinian nationals suspected of plotting attacks in Cyprus, with court hearings expected on remand extensions.

Construction & Costs: Cyprus construction materials prices jumped 10% in two months, with a five-year rise of 35%, driven by energy prices, geopolitical pressures and higher emissions allowance costs hitting iron, aluminium and steel. Maritime & Shipping: Greek shipowners are increasingly registering vessels under the Cyprus flag, citing faster processing, stability and a tax framework based on ship size. Energy Tech: NVIDIA executives say AI can help Cyprus tackle traffic, water and climate resilience, while BaroMar’s underwater compressed air storage pilot in Cyprus targets major electricity savings and greater renewable use. Energy Policy: Former energy regulator Andreas Poullikkas revived debate on small modular reactors, arguing SMRs could support power, desalination and hydrogen production. Finance & Regulation: Freedom Finance Europe updated capital and liquidity disclosures to CySEC after an internal audit, aiming to strengthen buffers under stricter EU rules. Business & Diplomacy: Cyprus President Nikos Christodoulides’ Kazakhstan visit highlighted new flights, a fresh embassy opening and growing investment links, with Freedom24’s Evgenii Tiapkin pointing to digitalisation and financial-sector cooperation. Security & Courts: Six defendants in the Limassol businessman murder case pleaded not guilty; the next court stage is set for September. Connectivity: Cyprus-based Tototheo Global signed with Eutelsat to deliver LEO connectivity for maritime and enterprise/government needs across Greece and Cyprus. Energy Infrastructure: ViaTunisia’s subsea segment reached ready-for-service status, boosting resilient digital connectivity between Southern Europe and North Africa. Brand & Aviation: Cyprus Airways named Andrea Pirlo as brand ambassador, aligning with its Dubai and Italy routes. Energy & Environment: Green Agenda discussions put Akamas under the spotlight, focusing on biodiversity value and local governance of development and access.

EU Cohesion & Mobility: Cyprus’ EU presidency chair Makis Keravnos says ministers backed a “right to stay” approach, aiming to let EU citizens live and work in their home regions through cohesion policy and targeted investment. Cyprus Economy: Eurostat estimates show Cyprus GDP grew 0.2% quarter-on-quarter in Q1 2026 and 3% year-on-year, outpacing both the euro area and EU despite a slowdown. Tourism & Investment: Limassol Greens officially inaugurated its integrated golf resort and residential development, pushing a year-round premium tourism and lifestyle model. Aviation & Travel Demand: Wizz Air will add 57,500 extra seats from its Larnaca base in Aug–Sep, accelerating route capacity on high-demand links. Banking & Finance: Alpha Bank Cyprus hosted a Famagusta-focused business event highlighting the district’s tourism and investment potential, while Eurobank reiterated its green transition strategy at its Green Agenda Summit. Digital Connectivity: Cyprus-based Tototheo Global partnered with Eutelsat to expand OneWeb LEO connectivity for maritime, enterprise and government needs across Greece and Cyprus. Food Safety: A Limassol wedding poisoning probe points to salmonella in chicken à la crème, with lab confirmation pending as dozens were affected. Corporate Moves: Demetra Holdings reported ongoing share buyback activity and set dates for its next quarterly results. Energy/Tech: ViaTunisia’s subsea cable segment reached ready-for-service status, boosting resilient high-capacity connectivity between Southern Europe and North Africa.

EU Cohesion: EU cohesion ministers met in Nicosia under Cyprus’ 2026 presidency, with discussions on how Cohesion Policy can boost growth and jobs, and a focus on island regions ahead of an EU Strategy for Islands due June 26. Public Safety Tech: Cyprus Civil Defence has commissioned GCC and Intersec to run a new national Public Warning System using Cell Broadcast, deployed across all four mobile operators to improve emergency alerts. Energy Policy: Former energy minister Giorgos Papanastasiou sparked debate at Green Agenda 2026 by arguing political interference has delayed key energy projects, including gas and the electricity interconnector to Europe. EU Legal Pressure: The European Commission escalated infringement action against Cyprus over renewable energy permit delays, issuing an additional reasoned opinion after gaps in implementing the revised Renewable Energy Directive. Economy & Jobs: Cyprus’ unemployment rose to 7.6% in May, while inflation and growth figures continue to shape the policy backdrop. ICT & Business: CITEA highlighted Cyprus’ strong ICT education base, while easyCourier announced expansion in Cyprus delivery services. EU Enlargement: Cyprus’ presidency is preparing for the formal opening of accession talks with Moldova and Ukraine, with preparations for the first cluster of chapters.

Cyprus–Kazakhstan Business Push: President Nikos Christodoulides’ first official visit to Kazakhstan is already translating into deals, with Cyprus and Kazakhstan signing cooperation agreements across education, research, culture, ICT, cybersecurity and e-government, plus a business forum drawing 70+ companies and Freedom Holding as strategic partner. Middle Corridor Logistics: Kazakhstan is inviting Cyprus into the Trans-Caspian International Transport Route (“Middle Corridor”), pitching faster China–Europe cargo links and leveraging Cyprus’s maritime hub role. EU Accession Talks Move Forward: Cyprus, chairing the EU Council, says Hungary and Ukraine/Moldova reached a minority-rights deal, enabling preparation to open the first accession negotiation cluster for Ukraine and Moldova. Tech & Research Capacity: Cyprus’s upgraded national supercomputer is set to go live this month at the Cyprus Institute, with NVIDIA support aimed at expanding AI, big data and simulation capacity for researchers, universities, public bodies and businesses. Local Economy & Finance: Cyprus unemployment rose to 7.6% in May, while inflation dipped but fuel costs stayed high; Cyprus also discussed future investment priorities with the EIB in Nicosia. Energy & Markets: Cyprus fuel prices fell as crude eased, but Middle East risk kept pressure on markets. Digital Services Growth: easyCourier is expanding in Cyprus after rebranding from Svelta Courier, betting on tech-led delivery and distribution. Legal & Governance: The Supreme Court reserved its decision on a challenge to a search warrant tied to the “Sandy” investigation, as Cyprus Police said allegations were false and fabricated. EU Drugs Policy: The EU Council backed a new framework to implement the EU drugs strategy, targeting trafficking and reducing drug-related harm.

Tourism confidence boost: Cyprus’ tourism outlook is improving after the US and UK revised travel advisories, with Deputy Tourism Minister Costas Koumis calling it a step toward “normalisation” and industry still watching how fast bookings recover. Tourism hit from Israel market: New data shows March tourism revenue fell to €85.6m (-33.8%), driven largely by a sharp drop in Israeli arrivals to 1,537 (from 28,353 a year earlier). Kazakhstan ties go business-first: President Nikos Christodoulides’ first official visit to Kazakhstan in Astana focused on trade, energy, tourism and investment, with agreements covering digitalisation, culture, education, sports and cybersecurity, plus new direct flights to Larnaca. EU defence finance: Cyprus secured a €1.18bn SAFE programme loan deal, with funding expected to start flowing to armed forces and defence industry. Markets & regulation: CySEC fined Limassol forex firms over missing risk warnings in CFD trading ads, while Cyprus’ EU tobacco-tax directive file was withdrawn from the next Ecofin meeting after no consensus. Energy pipeline talk: Egypt is pushing to accelerate the Aphrodite gas project by finalising commercial and technical agreements for transporting gas to Egypt for processing and re-export.

Tourism Boost: The UK and US have eased travel advisories for Cyprus, restoring confidence after earlier Middle East-linked warnings. Tourism Revenue Watch: New data show March tourism income fell to €85.6m (-33.8% y/y), with a sharp drop in Israeli arrivals a key driver. EU Defence Finance: Cyprus has completed SAFE programme paperwork for €1.18bn in EU defence loans, with initial funding of about €177.2m expected to start flowing soon. Trade & Investment Links: President Nikos Christodoulides pushes closer Cyprus-Kazakhstan ties in Astana, pitching cooperation in business, energy, tourism and investment. Regulatory & Finance: CySEC fines Limassol forex firms over missing risk warnings in CFD ads, while the Tax Department orders rent payments to move fully online from July 1. Business Climate: Cyprus’ economy is forecast to stay resilient despite risks, with the European Commission citing growth and stable public finances. People & Rights: A visually impaired student challenges the University of Cyprus over practicum assessment, while the Videogate criminal probe heads to the attorney-general’s office. Energy & Costs: Fuel prices in Cyprus are easing, but volatility remains tied to Middle East uncertainty. Local Economy Support: The energy ministry announces €1.7m in schemes to help Cypriot firms take part in exhibitions and trade events.

UNGA Leadership Shake-up: Bangladesh’s Foreign Minister Dr Khalilur Rahman was elected President of the UN General Assembly’s 81st session, beating Cyprus’ UN envoy Andreas Kakouris 99-91, with Rahman pledging to act as a “bridge-builder” amid strained global trust. EU Disaster Readiness: The European Commission is pre-positioning a record firefighting force—777 firefighters plus aircraft and helicopters—across high-risk areas including Cyprus, as wildfire seasons grow longer and more destructive. Cyprus Economy & Tourism Signals: Cyprus’ GDP growth is reported at about 3% and retail sales rose in April, but tourism revenue is still down sharply, pointing to uneven recovery pressures. Cyber & Consumer Safety: Police warn of a surge in scam calls using automated prompts to “confirm” payments, urging residents to verify via official channels. Energy/Shipping Links: Safe Bulkers has started trading on Euronext Athens, highlighting Cyprus’ role in Greek-linked shipping capital markets. Aviation Connectivity: Kazakhstan’s direct flights to Cyprus are set to expand business and tourism ties, with President Christodoulides visiting Kazakhstan to mark the new connectivity.

Cyprus Economy: Cyprus’ GDP grew 3% year-on-year in Q1 2026, with activity led by wholesale/retail trade, transport, accommodation and food services, plus a 5.4% jump in information and communication. Retail Momentum: Retail turnover rose in April, with the value index up 5.8% and volume up 2.9% year-on-year, led by automotive fuel (+16.5% in value) and household equipment. Tourism Boost: The US downgraded its travel advisory for Cyprus to Level 1 (“normal precautions”), a shift that should help holiday planning after months of heightened regional concern. Water Saving Drive: Authorities began distributing free water-saving kits (aerators and shower reducers) starting in Paphos, aiming to cut household water use by up to 30%. Road Rules Update: From now on, drivers involved in minor crashes may be required to move vehicles to reduce congestion, with non-compliance punishable by fines. UNGA Race: Cyprus’ multilateral envoy Andreas Kakouris lost the UN General Assembly presidency bid to Bangladesh’s Khalilur Rahman (99 vs 91 votes), with the session starting in September. Shipping Finance: Castor Maritime reported Q1 net income of $69.2m, reversing a prior-year loss, alongside higher revenues. Business & Compliance: Cyprus’ dashcam rules take effect from July 23, with strict personal-data limits and guidance to be issued by the data protection commissioner.