Eurobarometer Survey Reveals Stark Economic Outlook

A comprehensive Eurobarometer survey conducted between March 12 and April 1, 2026, has revealed significant economic and institutional challenges in Cyprus ahead of Europe Day. The study, which included 506 interviews in Cyprus as part of a pan-European sample of 26,415 citizens, underscores a pronounced economic pessimism and declining trust in national and European institutions.

Economic Sentiment And Future Projections

More than half of Cypriots, or 53%, described the country’s economic situation negatively, while 46% expressed a positive assessment. Across the European Union, by comparison, 60% of respondents viewed their national economies positively and 38% negatively.

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Economic pessimism also increased sharply compared with autumn 2025. Around 51% of Cypriots said they expect the economy to deteriorate further over the next year, marking a 23 percentage point increase from the previous survey period. Only 11% anticipated economic improvement.

Despite broader concerns about the economy, perceptions of personal financial conditions remained relatively stable. Around 75% of respondents described their household financial situation positively, while 60% said they expect employment conditions to remain stable over the coming year.

Main Challenges And Priorities For Action

The cost of living remained the leading concern among Cypriot respondents at 36%, followed by developments in the Middle East at 30%, the national economy at 24%, migration at 23% and housing at 21%. Across the EU more broadly, respondents prioritised instability in the Middle East, Russia’s invasion of Ukraine and migration.

Regarding policy priorities, Cypriots said EU spending should focus primarily on employment, social policy and healthcare, alongside education, youth initiatives, housing and security.

Institutional Distrust And European Identity

Trust in national institutions remained low throughout the survey. Only 31% of respondents said they trust the government, while confidence in parliament stood at 22%. At the same time, 74% expressed distrust toward parliament.

Views toward the European Union also remained divided. Around 39% of Cypriots said they trust the EU, compared with 54% who said they do not, although this represented a slight improvement from autumn 2025.

The survey additionally pointed to a stronger sense of local and national identity than European identity. While 92% said they feel connected to their local communities and 95% to Cyprus itself, only 52% reported feeling attached to the EU and 45% identified with Europe more broadly.

Digital Security And Divergent Foreign Policy Views

Concerns about digital safety also remained elevated, with 53% of respondents saying major online platforms are not doing enough to remove illegal or harmful content. Another 45% said existing user protection measures remain insufficient.

The survey also revealed notable differences between Cypriot and wider EU attitudes toward the war in Ukraine. Although 77% supported accepting refugees and 70% backed humanitarian and economic assistance, support for sanctions against Russia stood at only 30%, significantly below the EU average.

Support for military assistance to Kyiv remained particularly low at 18%, while only 41% of respondents supported Ukraine’s future EU membership compared with 56% across the bloc.

Conclusion

The findings reflect growing economic anxiety and continued institutional scepticism in Cyprus amid broader geopolitical uncertainty across Europe and the Middle East. At the same time, the survey showed that Cypriots remain highly focused on domestic economic stability, social policy and cost-of-living pressures as key priorities for the years ahead.

EU Cybersecurity Partnership Advances

OpenAI announced plans to expand access to its GPT-5.5-Cyber model to cybersecurity teams across European businesses, governments and EU institutions. The initiative forms part of the company’s broader effort to strengthen cooperation with European stakeholders on cybersecurity and digital resilience.

Regulatory Confidence And Ongoing Dialogue

European Commission Spokesperson Thomas Regnier affirmed the move at a press briefing, stating that the EU is closely monitoring the deployment of OpenAI’s enhanced model. “We welcome OpenAI’s transparency and intent to give commission access to the new model,” Regnier noted, adding that further discussions are scheduled to ensure robust security protocols.

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Comparative Strategies In Cyber Defense

OpenAI’s expansion follows the release of the Mythos cybersecurity model by Anthropic earlier this year. According to Regnier, discussions with Anthropic have also taken place, although engagement with OpenAI is currently progressing more rapidly. The different approaches reflect growing competition among AI companies seeking partnerships with governments and institutional cybersecurity teams.

A Collective Approach To Cyber Resilience

George Osborne, OpenAI’s Head of OpenAI for Countries, emphasized the importance of involving trusted partners in safeguarding digital infrastructure. “AI labs like ours shouldn’t be the sole arbiters of cyber safety as resilience depends on trusted partners working together,” Osborne stated. He further explained that the OpenAI EU Cyber Action Plan is designed to democratize access to state-of-the-art defensive tools, aligning with European public safety priorities.

Looking Ahead: Strengthening Europe’s Digital Defense

The rollout of GPT-5.5-Cyber highlights a wider industry trend toward closer coordination between AI companies, regulators and cybersecurity organisations across Europe. As governments and institutions continue evaluating the risks and opportunities associated with advanced AI systems, cybersecurity cooperation is becoming a growing focus within the European technology and regulatory landscape.

In a display of resilient financial performance, Bank of Cyprus reported profit after tax of €121 million for the quarter ended March 31, 2026. The results were supported by accelerating lending growth, stable asset quality and continued capital generation, reinforcing the bank’s broader growth strategy amid ongoing geopolitical and economic uncertainty.

Financial Performance And Growth Metrics

Return on tangible equity reached 18%, while basic earnings per share stood at €0.28. New lending increased to €829 million during the quarter, representing a 9% rise compared with the previous period. Growth in lending activity contributed to an expansion of the bank’s gross performing loan portfolio, which reached €11.1 billion. Customer deposits remained stable at €22.3 billion, reflecting continued liquidity strength and deposit stability.

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Operational Efficiency And Asset Quality

Operational efficiency remained a central focus during the quarter, with the cost-to-income ratio standing at 37%. Asset quality indicators also continued improving, as the non-performing exposure ratio declined to 1.1%, while the cost of risk benefited from a net release of 17 basis points. Panicos Nicolaou said the results were supported by stabilising net interest income alongside disciplined cost management across the group.

Strategic Acquisitions And Expanding Digital Horizons

Bank of Cyprus also continued pursuing expansion through targeted acquisitions and digital investment initiatives. The bank reached an agreement to acquire the performing loan and deposit portfolio of Cyprus Development Bank Public Company Limited in a transaction involving approximately €150 million in loans and €500 million in deposits. In parallel, Bank of Cyprus acquired a 26% stake in Wealthyhood as part of efforts to strengthen its digital investment and wealth management services focused on stocks and exchange-traded funds.

Market Outlook And Future Targets

Despite continued geopolitical uncertainty, the bank said the Cypriot economy remains resilient, with GDP growth forecasts for 2026 ranging between 2.7% and 2.9%, above the broader eurozone average. Bank of Cyprus maintained its medium-term targets for 2026–2028, including a mid-teens annual return on tangible equity. Management also reiterated plans to maintain a significant shareholder distribution policy, targeting payouts of up to 90% of 2026 earnings and potentially 100% for 2027 and 2028.

Conclusion

Bank of Cyprus said its strong capital position, stable balance sheet and continued lending growth support its ability to navigate ongoing economic and geopolitical uncertainty. According to Nicolaou, the bank remains focused on supporting customers and the broader Cyprus economy while continuing to deliver sustainable returns for shareholders.

Strong Financial Performance In Q1 2026

Eurobank published its interim consolidated financial statements for the first quarter of 2026, reporting adjusted net profit of €351 million for the period ending in March. Management said performance remained resilient despite geopolitical volatility and broader uncertainty affecting international markets.

International Operations Drive Growth

International operations accounted for 47% of adjusted net profit during the quarter, continuing to play a central role in Eurobank’s growth strategy. Diversification across regional markets helped support organic growth and operational stability throughout the period.

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Cypriot Market: A Pillar Of Stability

The Cypriot market remains central to Eurobank’s strategy, generating adjusted net profit of €103 million during the period. Although the figure represents a 14.7% decline compared with the same period last year, Cyprus continued to lead earnings contribution within the group’s non-Greek portfolio.

Asset Quality And Liquidity Strength

Eurobank’s Cypriot subsidiary held total assets of €28.7 billion as of March 31, 2026, while customer deposits reached €23.8 billion. A gross loan portfolio of €9 billion continued reflecting the bank’s lending activity toward local businesses and households. Asset quality indicators also remained strong, with the non-performing exposure ratio standing at 2.6% and the coverage ratio for impaired exposures reaching 94.1%.

Credit Expansion And Operational Efficiency

Fokion Karavias said credit expansion remained strong across the group’s core markets during the first quarter. Organic loan growth reached €1.1 billion, while the overall loan portfolio increased 10% year-on-year. Net interest income rose 4% to €664 million, although the net interest margin declined slightly to 2.46% following lower deposit facility rates set by the European Central Bank.

Diversified Revenue Streams And Cost Efficiency

Net fee and commission income increased 19.9% to €203 million, supported by wealth management activity and additional insurance income following the acquisition of ERB insurance subsidiaries in Cyprus during 2025. Operating expenses increased moderately to €330 million, while the cost-to-core income ratio remained at 38.1%.

Capital Adequacy And Strategic Outlook

Eurobank reported a fully loaded Common Equity Tier 1 ratio of 15.4% and a total capital adequacy ratio of 20.4%, maintaining significant capital buffers against potential market shocks. Total assets across the group reached €108 billion, reinforcing Eurobank’s position within the South-eastern European banking sector. Liquidity coverage stood at 165.3%, while the loan-to-deposit ratio reached 67.6%.

Looking Ahead

Amid ongoing global economic pressures and geopolitical uncertainty, Eurobank said it expects its core markets to continue outperforming broader eurozone growth rates. The bank noted that Greece and Cyprus are entering the current period of volatility from a relatively strong fiscal position, providing an important buffer for households, businesses and the wider economy. In Bulgaria, another key international market for the group, adjusted net profit increased 2.2% to €56 million during the quarter, further supporting Eurobank’s regional growth strategy. Liquidity indicators also remained strong, with the liquidity coverage ratio reaching 165.3% and the loan-to-deposit ratio standing at 67.6%.

Overall, the first quarter reinforced Eurobank’s ability to maintain organic growth, operational performance and financial resilience despite a more volatile international environment.

Visa is setting the pace for financial innovation by selecting seven pioneering fintech startups from Greece, Cyprus, and Malta for the 2026 cycle of its esteemed Visa Innovation Programme Europe. With applications from these markets surging by roughly 50% year-over-year, the initiative underscores the robust growth of regional fintech ecosystems.

Strengthening Digital Payment Infrastructure

Now in its eighth cycle, the programme is strategically recalibrated to empower fintech growth, enhance digital payment solutions, and accelerate innovation across financial services. This year’s focus on artificial intelligence, agentic commerce, B2B solutions, money movement, open finance, and data is intended to unearth scalable solutions capable of transforming the payment landscape.

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Showcasing Diverse Innovation

Following the selection process, startups AgriNow, Better, Cloudigo, Paytic, GYST, Outfindo and Peanuds were chosen to participate in the programme. The selected companies operate across a range of sectors, including AI-powered workforce management, payment infrastructure, consumer finance technology and back-office automation for financial services.

Leveraging Strategic Partnerships

The programme is executed in collaboration with Eleven Ventures and Endeavor Greece, providing selected companies with unparalleled access to Visa’s extensive network of partners, mentors, investors, and clients. This ecosystem enables startups to rigorously test, validate, and accelerate their solutions under real market conditions while integrating emerging technologies within Visa’s global framework.

Insights From Industry Leaders

Sevi Vassileva, General Manager for Visa in Greece, Cyprus, Malta, and Israel, highlighted innovation as the cornerstone of evolving payment systems, stating, “In the eighth cycle of the Visa Innovation Program Europe, we are welcoming for the first time seven dynamic fintechs that bring fresh solutions capable of transforming the financial sector.” Daniel Tomov, founding partner at Eleven Ventures, and Panagiotis Karampinis, Regional Managing Director at Endeavor Europe, also emphasized the increasing sophistication of the regional fintech landscape and the importance of strategic networking in driving industry transformation.

Programme Impact And Future Outlook

Since launching in 2019, the Visa Innovation Programme Europe has expanded across 15 countries and reviewed more than 1,900 startup applications. Nearly 250 fintech companies have reached final evaluation stages, while the programme has facilitated more than 1,500 mentorship hours and over 750 introductions to Visa partners and investors.

The 2026 cycle will run through November before concluding with the Visa Innovation Program Europe Summit, where participating startups will present their progress to industry executives, investors and technology leaders.

Recent data from the Cyprus Statistical Service reveals that tourism revenues rose by 7.4% during January and February 2026 compared to the same period in 2025. This upward trend in earnings comes ahead of the onset of the US-Israel conflict targeting Iran, highlighting the sustained recovery in the tourism sector.

Steady Growth In Tourism Revenues

In February 2026 alone, tourism revenues reached €85.3 million, marking a 7% increase from €79.7 million in February 2025. Over the combined period of January and February 2026, total earnings from tourism climbed to €159.9 million from €148.9 million recorded the previous year.

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Increasing Arrivals And Shifting Spending Trends

The robust growth in revenues has been supported by a notable rise in tourist arrivals. January 2026 saw an 8.5% increase in visitors compared to January 2025, with February recording a 9.5% climb. However, the average expenditure per tourist experienced a modest decline; in February 2026, the per capita spend dropped by 2.3% to €581.85 from €595.71 in the same month last year.

International Market Dynamics

Analysis of the visitor demographics indicates that the United Kingdom remained the largest tourism market for Cyprus in February 2026, representing 19.3% of all arrivals. British tourists spent an average of €72.72 per day. Additionally, Poland accounted for 18.4% of visitors, with Polish tourists spending an average of €75.02 daily. Israel emerged as the third-largest market, with 12.6% of arrivals, and its visitors led in daily spending at €157.15.

The continued growth in tourism revenue, coupled with rising visitor numbers, underscores the resilience of Cyprus’ tourism industry amid a shifting geopolitical landscape. As the island nation capitalizes on its appeal to international travelers, strategic investments and market diversification will be critical to sustaining long-term economic momentum.

Strategic Milestone For Fleet Expansion

Tus Airways added a new Airbus A320 to its fleet following the aircraft’s arrival at Larnaca International Airport. The expansion forms part of the airline’s broader strategy to strengthen operations across Cyprus and the eastern Mediterranean region.

Strategic Resilience In A Complex Region

According to the company, the addition of the Airbus A320 is intended to support operational reliability and improve scheduling flexibility during a period of continued geopolitical and regional uncertainty. Tus Airways said the aircraft will also help increase capacity across key routes while supporting the airline’s longer-term growth plans within the Cypriot aviation market.

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Expanding The Route Network

Fleet expansion comes as the carrier increases frequencies on routes operating from Larnaca and Paphos. The airline is also restoring air connections between Cyprus and Israel while expanding European services, including routes to Barcelona and Prague.

Commitment To Service And Growth

Panos Vogiatzis said the new aircraft strengthens the airline’s ability to support growing tourism and business travel demand. According to Vogiatzis, the additional capacity will also provide greater operational flexibility as the company continues expanding its regional network.

Focus On Regional Connectivity

Tus Airways said fleet growth remains central to its long-term strategy of strengthening regional connectivity and expanding its presence within the eastern Mediterranean aviation market. The airline continues positioning itself for further network development as travel demand across the region recovers.

Resilient Performance In A Challenging Environment

Eurobank reported adjusted net profit of €351 million for the first quarter of 2026, supported by stronger lending activity, operational efficiency and continued growth across its core markets. Reported net profit reached €331 million, while earnings per share stood at €0.09 and return on tangible book value reached 15.1%. The bank said performance remained resilient despite geopolitical tensions affecting global markets and the broader economic outlook.

Strong Lending And Organic Growth

According to CEO Fokion Karavias, the bank’s credit expansion was pronounced in all its key markets.  Organic loan growth reached €1.1 billion, representing an increase of nearly 10% year-on-year, while the overall loan portfolio also expanded by 10%. Managed funds increased by €0.3 billion and rose 25.9% compared with the same period last year, reflecting continued growth in wealth management activities.

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International Operations Continue Supporting Growth

International operations accounted for 47% of adjusted net profit, with Cyprus and Bulgaria among the strongest-performing markets. In Greece, growth in corporate lending was supported by higher investment activity, while the mortgage market continued showing gradual improvement.

Strategic Navigation Through Geopolitical Uncertainty

Karavias said global and regional growth forecasts have weakened amid developments in the Gulf region, although Eurobank still expects its core markets to outperform broader eurozone growth levels. He added that Greece and Cyprus entered the current period of uncertainty with relatively strong fiscal positions, helping support households and businesses against external pressures.

Impressive Financial Metrics And Future Outlook

Eurobank’s first-quarter results also reflected continued operational efficiency across its core banking activities. Net interest income increased 4% year-on-year to €664 million, despite a decline in the net interest margin to 2.46%, mainly linked to lower interest rates set by the European Central Bank. At the same time, net fee and commission income rose nearly 20% to €203 million, supported by stronger lending activity, growth in wealth management services and contributions from the acquisition of ERB Insurance subsidiaries in Cyprus.

Additional financial indicators, including core income and pre-provision income, also recorded solid growth during the quarter. Eurobank maintained a capital adequacy ratio of 20.4% and a CET1 ratio of 15.4%, reinforcing the bank’s balance sheet strength amid continued geopolitical and market uncertainty. The bank said it remains on track to meet its 2026 targets while continuing to focus on organic growth opportunities across its core markets.

Conclusion

Eurobank’s first-quarter performance highlighted the bank’s ability to maintain profitability and growth despite a more volatile external environment. Continued lending expansion, stronger international operations and stable capital levels remain central to the group’s strategy as it navigates shifting economic and geopolitical conditions.

New Leadership At Cyta

Cyta, the prominent telecommunications provider, has taken a definitive step forward by appointing George Metzakis as its new Chief Executive Officer, effective immediately. This strategic decision marks a pivotal moment in the company’s evolution toward enhanced growth and digital innovation.

Seamless Transition And Proven Expertise

George Metzakis, who officially assumed the role on May 8, 2026, brings his longstanding experience from a previous tenure as Chief Commercial Officer at Cyta since 2023. He was instrumental as co-acting Deputy CEO starting September 2025, ensuring operational continuity and propelling strategic initiatives in competitive market environments.

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Driving Strategic Initiatives Across The Board

Throughout his career, Metzakis has held key leadership roles in marketing, sales, revenue growth, and customer experience management within the telecommunications sector, both in Cyprus and internationally. His tenure at Cyta was marked by the successful implementation of customer-focused strategies that substantially strengthened the provider’s mobile and broadband services.

A Vision For Continued Growth

Under his commercial leadership, Cyta advanced digital projects designed to enhance customer experiences while solidifying the organization’s public engagement. Metzakis’ appointment is a testament to Cyta’s confidence in a leader who combines clear strategic vision, deep market knowledge, and an exemplary record of execution.

Looking To The Future

As Cyta moves forward with its operational plan, the focus remains on service development and creating tangible value for the Cypriot society and broader economy. With Metzakis at the helm, the organization is poised to navigate the challenges of a rapidly evolving digital landscape, ensuring continued growth and competitive excellence.

Fourth-Quarter Performance Exceeds Expectations

Sony reported fourth-quarter revenue of 3.036 trillion yen ($19.4 billion), exceeding analyst expectations of 2.896 trillion yen. Operating profit, however, fell short of forecasts, reaching 164 billion yen compared with expectations of 278 billion yen.

While hardware sales declined from 183 billion yen to 110 billion yen year-on-year, stronger performance in Sony’s image sensor and music divisions helped support overall revenue growth. Sales of the PlayStation 5 also weakened during the quarter, with unit sales falling to 1.5 million from 2.8 million a year earlier.

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Despite softer hardware performance, Sony forecast a 13% increase in net profit for the financial year ending March 2027, projecting earnings of 1.16 trillion yen compared with 1.03 trillion yen in the previous year. The company also announced plans to repurchase up to 500 billion yen in shares over the next year.

Memory Price Surge Pressures Strategic Pricing

Sony said rising memory prices continue placing pressure on PlayStation 5 production costs as suppliers increasingly prioritise components for AI data centres and related infrastructure. The tighter supply environment has contributed to higher costs across the gaming hardware sector, prompting Sony to adjust pricing strategies, including PlayStation 5 price increases announced earlier this year.

According to the company, the financial impact of higher memory costs is expected to reach approximately 30 billion yen during 2026. At the same time, stronger demand in Sony’s mobile image sensor business helped offset some of the pressure, particularly through shipments to major smartphone manufacturers.

Forward-Looking Financial Strategy

Fourth-quarter operating profit was also affected by impairments linked to a discontinued EV project involving Honda and the company’s 2022 acquisition of Bungie. Looking ahead, Sony expects revenue to decline slightly to 12.3 trillion yen in the upcoming financial year compared with 12.5 trillion yen previously.

The company said continued focus on cost management, pricing adjustments and growth in higher-performing divisions will remain central to its financial strategy amid ongoing supply chain and component market volatility.