People in Cyprus are expected to spend 39.5 years in the workforce, around two years longer than the European Union average of 37.5 years, according to the latest Eurostat data for 2025.

The figure places Cyprus among the EU countries with the longest expected working lives.

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Cyprus Ranks Above EU Average

Only a handful of member states recorded higher figures than Cyprus. The Netherlands topped the ranking at 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years, and Estonia at 41.5 years.

At the other end of the ranking were Romania with 32.7 years, Italy with 33.0 years, Bulgaria with 34.6 years and Greece with 35.3 years.

Gender Gap Remains Wider Than EU Average

Men in Cyprus are expected to remain in work for 42.1 years, compared with 36.7 years for women. The gap of 5.4 years exceeds the EU average gender gap of 4.1 years.

Across the bloc, Lithuania, Latvia and Estonia were the only countries where women were expected to spend longer in employment than men. Finland recorded the smallest positive gender gap at 0.7 years.

Italy posted the widest gap at 8.9 years, followed by Romania at 6.9 years, Greece at 6.7 years and Malta at 6.3 years.

Working Lives Continue To Lengthen

Between 2016 and 2025, expected working life in Cyprus increased by 3.5 years, placing the country among the strongest performers in the EU over the period. Men’s expected working life rose by 3.3 years, while women’s increased by 3.6 years.

Across the EU, every member state recorded an increase. Malta posted the largest gain at 4.9 years, followed by Hungary and Ireland at 4.2 years each, and the Netherlands at 4.1 years.

Malta’s increase was driven largely by women, whose expected working life rose by 7.8 years, the biggest increase recorded across the bloc.

By comparison, Romania, Spain, Italy, Germany and Austria recorded gains of two years or less over the same period.

Women’s Working Lives Increase Faster Across Europe

Women’s expected working life increased faster than men’s in most EU countries. Denmark, Romania, Sweden and Greece were the main exceptions.

In Cyprus, gains for men and women were broadly similar, alongside Bulgaria, Belgium and Slovenia.

New Agreement Eases Pressure On Local Authorities

After months of consultations, Cyprus’ Ministries of Interior and Finance have agreed on a new funding formula for municipalities, changing how state support for local authorities will be calculated in the coming years.

According to Phileleftheros, the revised proposal consolidates several state funding streams into a single annual grant while increasing overall support, addressing one of the municipalities’ key requests.

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Unified Annual Grant Rises To €144 Million

Under the new framework, the €117 million annual grant introduced in 2022 will be combined with other forms of state support. As a result, municipalities will receive approximately €144 million a year.

Included in the package are €15 million for the maintenance of primary roads and €12 million to offset revenue losses from licensing fees. Although government estimates for road maintenance differed from those of local authorities, the administration ultimately agreed to adopt the municipalities’ figures.

Three-Year Review Mechanism Introduced

Municipal funding will now be reviewed every three years based on state expenditure levels, with the first review scheduled for 2027. The change is intended to give local authorities greater certainty when planning future budgets.

Future allocations will be adjusted using 50% of the growth in the government’s net primary expenditure, as defined under the Medium-Term Fiscal Structural Plan.

What The Reform Means For Municipal Budgets

Overall, the revised formula lifts the consolidated annual subsidy to €147.888 million, providing municipalities with a more predictable funding base for long-term planning and investment.

Beyond the direct grant, the government will continue financing a significant share of municipal planning and urban development projects, maintaining its role in supporting local infrastructure.

Future Funding Linked To Public Spending

The agreement follows months of negotiations between the government and municipalities over the level of state support. It also establishes a clearer framework for future funding increases by linking municipal grants to growth in public spending.

BMW is counting on its long-delayed Neue Klasse electric vehicles to revive its business in China after two consecutive years of declining sales. By the time the new models arrive, however, analysts question whether the world’s largest EV market has already moved ahead.

The pressure increased last month after BMW, under new CEO Milan Nedeljkovic, issued a surprise profit warning that partly cited China. It was the company’s third profit warning in less than three years. On Friday, BMW reported a 30% drop in second-quarter sales in the country, highlighting the pressure in one of its most important markets.

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China’s EV Market Has Changed

Analysts say BMW has taken too long to bring Neue Klasse, or “new class,” electric vehicles to market. Chinese automakers now develop increasingly advanced models in as little as 18 months, roughly half the development time of many traditional manufacturers, while consumer expectations have shifted just as quickly.

“If this had launched two years ago, it could have been a game-changer,” said Yale Zhang, managing director of Shanghai-based research firm Automotive Foresight. “In today’s Chinese auto market … it is hard to stand out.”

Premium branding alone is no longer enough. Chinese buyers increasingly expect advanced software, seamless digital services and distinctive in-car technology from domestic brands such as Nio, which demonstrated its flagship ET9 sedan’s suspension system by driving over speed bumps with a tower of champagne glasses on the bonnet without spilling a drop.

Traditional Strengths Lose Their Edge

BMW’s engineering heritage and reputation for combustion-engine performance have long supported strong margins in Europe and the U.S. In China, those strengths carry less weight as more buyers turn to domestic brands such as Nio, Geely’s Zeekr and Xiaomi.

“Chinese consumers no longer buy into that,” said Wang Xianbin, vice president of the Gasgoo Research Institute.

Those brands are now competing directly for customers who once would have defaulted to BMW, Audi, Porsche or Mercedes-Benz. The sales figures reflect that shift. Fully electric vehicles account for only about 5% of BMW’s sales in China, according to Global Mobility, while EVs represent 46% of total vehicle sales in the country. BMW’s China sales declined in both 2024 and 2025. Mercedes-Benz reported a 28% drop in first-half sales this year, while Audi sales fell 19%.

Discounts Are No Longer Enough

Hendrik Schmidt of DWS, one of BMW’s top-10 investors, said the company appears to have underestimated the pace of change in China. He also said direct experience in the market among senior executives and board members remains limited.

“From our perspective, the dynamics here have been considerably underestimated,” he said.

A BMW spokesperson disagreed, saying senior management has extensive experience in China and that the company’s strategy focuses on “highly integrated digital services, advanced connectivity features, and rear-seat comfort.”

According to Shanghai consultancy LandRoads, BMW’s average transaction price in China in 2025 was 341,000 yuan, or about $50,200. That was below local brands including Nio, Aito and Denza. Among German premium brands, only Audi’s average transaction price was lower, at 287,000 yuan.

BMW said it reduced some list prices during the first quarter in coordination with local authorities and noted that independent dealers remain free to determine discounts and final sales prices. Analysts, however, say price cuts alone are no longer enough.

“Chinese consumers today don’t just pick a car based solely on deep discounts,” Wang said.

Zhang added that local competitors are “armed to the teeth with cutting-edge features.”

Neue Klasse Faces Its Biggest Test

Neue Klasse sits at the center of BMW’s electric vehicle strategy. The platform is expected to underpin 40 new models by next year and has already generated encouraging early demand in Europe. Its China rollout, however, was delayed after BMW replaced its in-house assisted-driving technology with systems developed by Chinese partner Momenta, a capability many local buyers now consider essential rather than optional.

BMW said it takes a different approach to so-called China speed, emphasizing extensive testing throughout development to ensure safety. Some analysts argue the market has already moved beyond BMW’s original vision. Wang said he first heard about Neue Klasse four years ago and believes the company’s focus on range anxiety no longer reflects what Chinese buyers care about.

“That was a concern from two or three years ago,” said Chang Yan, founder of the EV-focused Weibo blog Supercharged.

He said the qualities traditionally associated with BMW in Europe, including driving dynamics and performance, matter less in China, where domestic manufacturers have become “far more aggressive in design and features.”

BMW is now trying to regain ground in a market where software, technology and locally developed features increasingly matter more than traditional premium branding.

“Overall, it’s clear that BMW is one step behind,” Wang said.

Cyprus is preparing tighter rules for self-service accommodation after an Audit Office report exposed widespread licensing failures across the short-term rental sector, prompting renewed calls for stricter enforcement from the hotel industry.

The report examined licensing practices across self-service accommodation and the wider tourism sector, highlighting compliance gaps and raising fresh questions over the effectiveness of the current regulatory framework.

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Licensing Under Scrutiny

The findings gained additional attention following the collapse of a building in Germasogeia on April 11, 2026, where three self-catering apartments were operating, intensifying concerns over oversight and safety.

In a statement issued yesterday, the Cyprus Association of Tourist Enterprises (STEK) said the report confirmed long-standing concerns that accommodation continues to operate without the required licences, effective inspections or sufficient coordination between public authorities. According to the association, these shortcomings have weakened the state’s ability to properly supervise the sector.

STEK argued that inadequate regulation extends beyond unfair competition for licensed hotels. It said weak enforcement also adds pressure to the housing market, makes it more difficult for permanent residents to find affordable homes, affects neighbourhood quality of life and may pose risks to visitor safety.

Seven Proposals

As the Deputy Ministry of Tourism prepares new legislation, STEK has proposed seven measures for inclusion in the draft bill:

• Effective and systematic inspections to detect illegal accommodation.
• Stronger enforcement, including administrative and financial penalties.
• Mandatory display of registration numbers on digital platforms and cooperation with authorities to remove illegal listings.
• Limits on the number of days properties can be rented on a short-term basis, in line with practices adopted in several European countries.
• Powers for local authorities to restrict or prohibit short-term rentals in areas facing housing pressure or significant disruption.
• A mandatory overnight stay levy.
• Common safety, health and insurance standards across all hospitality providers.

Audit Finds Widespread Non-Compliance

As of May 6, 2026, Cyprus had 8,464 licensed self-service accommodations registered in the Self-Catering Accommodation Register. However, the Audit Office found that many properties advertised on online booking platforms were either missing from the register or displayed incorrect registration details, making effective supervision difficult.

Of the 20 properties that could be identified, only six (30%) were properly registered and held valid licences. Ten (50%) displayed no registration number and did not appear in the official register, while four (20%) used registration numbers that were either no longer valid or belonged to different properties.

Deputy Ministry Points To EU Rules

Responding to the findings, the Deputy Ministry of Tourism acknowledged that some properties advertised on digital platforms are either unregistered or fail to display a registration number. It said the issue will be addressed through the implementation of Regulation (EU) 2024/1028, whose provisions became applicable on May 20, 2026, strengthening the registration and verification framework for short-term rental platforms.

Hotel Sector Also Faces Licensing Problems

The Audit Office found that compliance issues extend beyond self-service accommodation. As of April 27, 2026, only 168 of Cyprus’ 728 hotels and tourist accommodations (23%) held a full operating licence, while another 158 establishments (22%) were operating under temporary permits.

The remaining 402 establishments, representing 55% of the total, were operating without either an operating licence or a temporary arrangement. The report concluded that the facilitation measures and transitional arrangements introduced in recent years have not achieved the intended level of compliance across the sector.

People in Cyprus can expect to spend 39.5 years in the labour market over the course of their lives, according to Eurostat data for 2025. The figure measures the number of years a person is expected to remain economically active, including periods spent working or actively seeking employment. It places Cyprus two years above the European Union average of 37.5 years.

Cyprus Above EU Average

Across the EU, expected working life increased from 37.2 years in 2024 to 37.5 years in 2025, continuing a gradual upward trend. In Cyprus, men are expected to spend 42.1 years in the labour market, compared with 36.7 years for women. Across the bloc, the figures stand at 39.5 years and 35.4 years, respectively.

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Longest And Shortest Working Lives

The EU average has risen by 2.3 years since 2016, from 35.2 years to 37.5 years. Seven member states now record expected working lives of at least 40 years, led by the Netherlands with 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years and Estonia at 41.5 years.

At the other end of the ranking, Romania recorded the shortest expected working life at 32.7 years, ahead of Italy at 33 years and Bulgaria at 34.6 years.

Differences Between Men And Women

Among men, the Netherlands recorded the longest expected working life at 45.9 years, followed by Sweden and Denmark, both at 44.5 years. The lowest figures were recorded in Bulgaria, Romania and Croatia.

For women, Sweden ranked first with 42.3 years, while Italy recorded the shortest expected working life at 28.4 years, followed by Romania at 29.1 years and Greece at 31.8 years.

Cyprus’ short-term rental market is heading into a softer tourism season, with occupancy rates and prices both down by 10% to 15% from a year earlier, according to industry representatives.

Occupancy And Prices Decline

Speaking to Alpha TV, Konstantinos Karakontis, president of the Self-Service Tourist Accommodation Association (Stek), said demand has slowed compared with last year’s strong season.

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“Occupancy is lower by 10% to 15% and prices are also reduced by 10% to 15%,” he said.

Licensing Remains A Challenge

Karakontis said the number of short-term rental properties listed on digital platforms has remained broadly stable at between 12,000 and 15,000, but only around 8,500 are licensed by the Deputy Tourism Ministry.

He said the sector’s main challenge is the absence of a direct link between the official licensing register and platforms such as Airbnb and Booking.com, allowing some unlicensed properties to remain listed.

According to Karakontis, proposed legislative changes would enable platforms to verify registration numbers in real time and remove listings operating without valid licences.

Calls For Better Coordination

Karakontis also questioned coordination between public authorities following the collapse of an apartment building in Yermasoyia, where one of the units had reportedly been used for short-term accommodation.

He argued that authorities should share information on buildings deemed unsuitable for use rather than introduce additional administrative requirements for operators.

Housing Debate

Responding to criticism that short-term rentals are driving up housing costs, Karakontis said most growth in the sector has been concentrated in tourist areas, including Famagusta and Paphos. He added that stronger enforcement against illegal rentals should remain the industry’s priority.

Cyprus is accelerating the rollout of electricity storage as the Transmission System Operator (TSO) advances new infrastructure alongside private-sector projects aimed at strengthening grid stability and supporting the island’s energy transition.

Storage Capacity Expands

According to the Cyprus News Agency, the TSO has issued preliminary connection terms for stand-alone battery storage projects with a combined capacity of more than 200 MW and around 500 MWh of storage.

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Connection terms have also been granted for hybrid solar-and-battery projects totalling 29 MW and approximately 100 MWh of storage capacity.

As an isolated electricity system, Cyprus increasingly relies on storage to balance supply and demand, particularly as renewable generation expands. Battery systems can absorb excess solar power during peak production and feed it back into the grid when demand rises.

Public Storage Projects Advance

Separately, the TSO has awarded a tender for the supply and installation of three grid-scale battery storage systems with a combined capacity of 120 MW and 400 MWh, following regulatory approval for privately owned storage facilities connected to the transmission network.

The systems are expected to help stabilize the grid, reduce renewable energy curtailment and improve the reliability of electricity supply.

Next Steps

The operating framework for the facilities is still being finalised, with privately owned storage projects expected to receive priority in market participation.

Once Cyprus completes its electricity interconnection with other European Union member states, ownership of the TSO’s storage assets is expected to be transferred through an open tender process, paving the way for broader market participation.

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

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Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

Cyprus’ tourism sector is showing signs of renewed stability, even as June arrivals slipped 1.7% year on year, according to Deputy Minister of Tourism Kostas Koumis, who said the latest figures point to a market that has now returned to a steadier path.

The comments followed the release of new data from the Cyprus Statistical Service (Cystat), which showed that 489,965 tourists visited the island in June 2026, down from 498,527 in the same month last year.

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A Softer First Half, But Not A Break in Momentum

For the January-to-June period, Cyprus recorded 1,656,015 tourist arrivals, representing a 10.1% decline from 1,843,013 in the first half of 2025. Even so, Koumis argued that the underlying picture was more resilient than the headline decline suggests.

He described June as “satisfactory under the circumstances,” saying it confirmed that the tourism sector had moved back onto a stable trajectory after a difficult spring. In particular, he pointed to the weaker performance in March and April, when the conflict in the Middle East weighed on travel demand and disrupted normal seasonal patterns.

“It also confirms that the actions taken by the deputy ministry, together with the entire tourism industry, to manage the extraordinary situation our country’s tourism sector faced from March 1 onwards have clearly produced improved results,” Koumis said.

Reading Beyond The Headline Numbers

The deputy minister also argued that the first-half performance, while down year on year, should be viewed in context. Arrivals in the first six months of 2026 were still 0.2% higher than during the same period in 2024, suggesting that the market has not lost its broader momentum.

“If we take into account the very significant losses recorded during March and April, which heavily influence any analysis, the first-half performance should also be considered satisfactory,” he said. “At the same time, a window of hope is opening for a further reduction in the overall decline for the current year.”

Targeted Support For Key Markets

Koumis said the government is now focusing on a deeper analysis of market trends rather than relying solely on overall arrival figures. That review, he added, has identified several geographic markets that have been affected and still require support to sustain long-term growth.

“As a government, and as the competent deputy ministry, we are certainly not stopping at simply reading the numbers,” he said. “A thorough analysis shows that several geographical markets have been affected and still require careful support to ensure their successful and uninterrupted development in the coming years.”

According to Cystat, the United Kingdom remained Cyprus’ largest source market in June, accounting for 33.0% of arrivals, or 161,913 visitors.

Looking Ahead To Next Year

Koumis said planning is already underway for the years ahead, with next year at the centre of the government’s coordination efforts with the tourism industry.

“We are continuing to work hard on planning for the coming years, with next year naturally at the centre of our efforts, in cooperation with the country’s tourism industry,” he said. “Our ultimate objective remains the continuation of our collective effort to transform Cyprus into a sustainable, digitally smart and accessible destination for everyone.”

The Cyprus Chamber of Commerce and Industry (Keve) has welcomed Parliament’s unanimous approval of legislation establishing the Cyprus Business Development Organisation, describing it as a major step toward improving access to finance for small and medium-sized enterprises, startups and self-employed professionals.

Expanding Access To Finance

The legislation creates a new public body aimed at addressing financing gaps by supporting businesses that struggle to secure funding through traditional channels.

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According to Keve, the initiative could strengthen entrepreneurship, boost competitiveness and support Cyprus’ green and digital transition. The chamber has long argued that SMEs rely too heavily on bank financing, limiting investment, expansion and innovation.

Keve Calls For Swift Implementation

Keve said it helped shape the legislation through the consultation process and called for the organisation to become operational as quickly as possible. It also pledged to continue working with the Finance Ministry and the organisation’s management to support implementation.

How The Organisation Will Operate

Approved by Parliament on Tuesday, the legislation establishes Cyprus’ national business development body under the supervision of the Finance Minister, while the Central Bank of Cyprus will oversee anti-money laundering compliance.

The organisation will design financing programmes, provide loans and conduct studies to identify weaknesses in the financing market.

Cyprus will provide €60 million in initial capital. Over time, the body will also be able to raise funding from European and international institutions and benefit from state guarantees linked to approved strategic priorities.

Recovery Plan Milestone

Creation of the organisation is one of the final milestones under Cyprus’ Recovery and Resilience Plan and is required for the country to receive the plan’s ninth and final payment. Appointment of the board of directors remains the last outstanding step.

Before approving the bill, the Finance Ministry revised the draft following consultations with MPs and stakeholders. The changes removed provisions allowing the organisation to establish companies and narrowed the list of eligible beneficiaries by excluding small mid-cap companies.

Lawmakers also strengthened governance rules by introducing stricter board suitability requirements, conflict-of-interest safeguards, enhanced reporting obligations and borrowing limits. A seven-member board appointed by the Cabinet will oversee the organisation, while a transitional board will serve for two years until it becomes fully operational.