EU Supervisors Highlight Risks From Geopolitics And Private Markets

Geopolitical Tensions Reshape The EU Financial Landscape

The European Banking Authority, European Securities and Markets Authority, and European Insurance and Occupational Pensions Authority reported rising risks to the EU financial system in a joint update. The spring report was presented to the Financial Stability Table of the Economic and Financial Committee on March 19–20, 2026. Findings point to geopolitical tensions, including developments in the Middle East, as a factor affecting the economic outlook.

Market Dynamics And Emerging Financial Risks

Rising energy prices, inflation, and slower economic growth are contributing to market pressure. High equity valuations and narrow bond spreads increase the risk of sudden repricing and potential liquidity constraints. Higher interest rates and funding costs may also affect asset quality across sectors.

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Complex Exposure And The Impact Of Private Finance

Disruptions in trade routes, including the Strait of Hormuz, and airspace restrictions, add to the risk environment. While insurers may limit direct losses through policy exclusions, broader risks include cyber threats and potential disruption to infrastructure such as payment systems and financial services. Private equity and private credit markets in the EU have expanded significantly over the past 15 years. Assets under management reached about €0.8 trillion in private equity and €0.1 trillion in private credit as of March 2025. Increased links between private markets and traditional financial institutions may introduce additional risk, particularly given lower transparency and lighter regulatory oversight.

Regulatory Challenges And Proactive Risk Management

Supervisory authorities said the EU financial system remains stable, supported by capital and liquidity levels across banking, insurance, and pensions. At the same time, institutions are advised to incorporate geopolitical risks into decision-making, manage sovereign exposures, and prepare for regulatory developments, including the Solvency II review in 2027. Differences in regulatory approaches between major economies may also affect capital requirements and cross-border operations.

Conclusion: Resilience Amid Uncertainty

The report indicates that the EU financial system remains stable despite current risks. Supervisors highlighted the need for ongoing monitoring of private markets and continued risk assessment as economic conditions evolve.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

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