Cyprus Government Cooperates Fully With EPPO On Vasilikos LNG Terminal Investigation

The Cypriot government is in full cooperation with the European Public Prosecutor’s Office (EPPO) regarding an investigation into the Vasilikos LNG terminal project. Initiated in March 2024, the investigation focuses on potential procurement fraud, misappropriation of EU funds, and corruption related to the construction of the terminal, which started in 2019 but has yet to be completed.

Background and Investigation Details

The Vasilikos LNG terminal project, a significant infrastructure initiative for Cyprus, aims to integrate the island into the broader European gas market, reducing its reliance on imported fuels and enhancing energy security. However, the project has encountered multiple delays and cost overruns, raising concerns about financial mismanagement and corruption.

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The EPPO, tasked with investigating and prosecuting crimes against the EU’s financial interests, launched the probe following reports from the Audit Office of the Republic of Cyprus and other European agencies. These reports highlighted irregularities in the procurement process, suggesting that funds allocated for the project might have been misused.

Government Response and Cooperation

Deputy Government Spokesperson Yiannis Antoniou has confirmed that Cypriot authorities are fully cooperating with the EPPO to ensure a transparent and thorough investigation. The government’s commitment to assisting the EPPO underscores its dedication to upholding the principles of fairness and transparency, essential for maintaining public trust and financial integrity within the EU.

“The government is determined to support the EPPO’s efforts and ensure that any wrongdoing is addressed appropriately. Transparency and accountability are paramount in projects of this magnitude,” Antoniou stated.

Broader Implications

The Vasilikos LNG terminal is critical not only for Cyprus’s energy strategy but also for its economic stability. Ensuring that the project is completed efficiently and ethically is vital for the country’s reputation and its ability to secure future EU funding.

This investigation by the EPPO serves as a reminder of the importance of stringent oversight in the management of EU-funded projects. It highlights the need for robust mechanisms to prevent and detect fraud, ensuring that public funds are used effectively and responsibly.

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Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

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Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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