Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

Cyprus could receive until 2036 to comply with higher European Union minimum cigarette taxes under a proposed compromise supported by Nicosia. However, the plan failed to secure unanimous approval on November 9 after Malta opposed the reforms, despite support from the other 26 member states.

EU finance ministers ended negotiations in Brussels without an agreement. For Cyprus, the proposed transition period would allow tobacco duties to increase gradually rather than meet the new EU thresholds by 2032.

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Cyprus Backs A Longer Transition Period

Finance Minister Makis Keravnos supported the latest compromise presented by the Irish presidency, describing it as balanced and flexible enough to reflect national circumstances.

According to the Cyprus Finance Ministry, the proposal builds on negotiations during Cyprus’ presidency of the Council earlier this year.

Under the plan, the EU minimum excise duty on cigarettes would rise from €90 per 1,000 cigarettes currently to €140 in July 2028, €170 in 2030 and €200 in 2032. By 2032, the duty would generally also have to represent at least 60% of the weighted average retail price, subject to exemptions.

These are minimum tax requirements, not automatic retail price increases. The impact on consumers would depend on national tax decisions and how much of the additional cost tobacco companies pass on.

Ten countries, including Cyprus, Greece, Italy, Bulgaria, Spain, Croatia, Luxembourg, Portugal, Romania and Slovenia, could receive an extension until January 1, 2036. The additional time would apply where meeting the proposed thresholds requires average annual excise increases of more than 2.35% compared with 2025 levels. The transition would also cover fine-cut tobacco.

The extension remains subject to negotiations. Until an agreement is reached, there will be no immediate change to cigarette taxation in Cyprus.

New EU Taxes For Alternative Nicotine Products

The reform would also introduce common minimum duties for e-cigarettes, heated tobacco and nicotine pouches.

Under the compromise, e-cigarette liquids, including nicotine-free products, would initially face minimum taxation of either 20% of the retail price or €0.20 per millilitre. Nicotine pouches would be taxed from 2028 at 10% of the retail price or €30 per kilogram.

The Council negotiating document sets out further increases for nicotine pouches: 25% or €40 per kilogram in 2030, rising to 50% or €50 per kilogram in 2032.

The proposed rates initially faced objections from Finland, which considered them too low, and Estonia, which opposed provisions allowing future adjustments without unanimous approval. Both countries eventually backed the revised compromise after the Irish presidency offered to revisit pouch taxation and the inflation adjustment mechanism.

Malta Blocks Agreement

Malta remains the only member state opposing the proposal. Finance Minister Clyde Caruana argues that the minimum rates are too high compared with current Maltese duties and could impose a disproportionate economic cost.

He has also questioned the extent to which EU legislation should restrict national tax policy. Although Malta supports the reform’s broader objectives, it considers the current terms unacceptable.

EU tax legislation requires unanimous approval, meaning one member state can block an agreement. Irish Finance Minister Simon Harris, who chaired Monday’s meeting, said negotiations would continue in December, while welcoming the support secured from 26 countries.

Changes To Cross-Border Tobacco Purchases

The compromise also proposes lowering the indicative quantity of cigarettes for personal consumption carried across EU borders from 800 to 200.

This would not automatically prohibit travellers from carrying more than 200 cigarettes. Customs authorities would continue assessing whether tobacco was intended for personal use or resale, taking individual circumstances into account.

Public Health And Revenue Objectives

The reform aims to update EU tobacco taxation rules that have not undergone a major revision since 2010, despite changes in smoking habits and the emergence of alternative nicotine products.

When the European Commission presented its original proposal in July 2025, it estimated that the changes could generate an additional €15 billion in annual EU tax revenue and reduce healthcare costs by around €6 billion.

Tobacco causes almost 700,000 deaths annually in the EU, where smoking prevalence remains around 24%. The Commission aims to reduce tobacco use to below 5% of the population by 2040.

For Cyprus, the outcome of the negotiations will determine whether higher EU minimum tobacco duties can be introduced over an extended transition period ending in 2036.

Cyprus has no shortage of university graduates, yet employers continue to struggle to fill vacancies, while many qualified workers are employed in roles that do not fully use their skills.

This contradiction is highlighted in CYEmployers, the country’s first national employers’ skills survey, published by the Education Ministry. The findings reveal a persistent mismatch between the skills businesses need, the jobs they offer and the capabilities available in the labour market.

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Among private employers with vacancies, 71% reported difficulty filling certain positions. Meanwhile, 34% of private employers that had recruited recent graduates hired them for roles that did not require a university degree. The figure rose to 58% in the public sector. In addition, 45% of private employers and 69% of public-sector managers said some employees had skills exceeding their job requirements.

Recruitment Challenges Go Beyond A Lack Of Qualifications

Conducted by PwC Cyprus in cooperation with the Department of Higher Education, the survey gathered responses from 1,395 private-sector organisations and 221 senior public-sector officials between May 2024 and January 2025. The findings were published on November 9.

Among private employers struggling to recruit, 68% cited insufficient interest in available positions, 58% a shortage of applicants and 53% a lack of candidates with the right skills.

Public-sector managers reported similar challenges: 50% pointed to insufficient interest, 42% to unattractive employment conditions, including pay, and 39% to difficulties finding suitably skilled applicants.

Recruitment difficulties were most common for professionals, technicians, service and sales workers, and clerical employees. The findings suggest that the problem is not simply a shortage of qualified candidates, but also the ability of employers to attract them.

Employers Need More Than Technical Skills

Higher education qualifications accounted for an average of 48% of private-sector workforces and 71% of public-sector workforces. However, employers identified gaps in both practical and interpersonal skills.

Among private businesses facing recruitment difficulties, 43% said candidates lacked willingness to learn, 35% cited communication skills and 31% time management. Teamwork and analytical or critical thinking were each mentioned by 28%.

Public-sector managers also highlighted communication, teamwork, time management and willingness to learn (37% each), alongside initiative (42%) and complex problem-solving (39%).

Most employers considered graduates from Cypriot higher education institutions at least moderately prepared for work. However, only 33% of private employers rated them as well or very well prepared, compared with 49% of public-sector respondents.

Graduates received stronger assessments for written communication, basic numeracy and digital skills, but weaker ratings for leadership, initiative and complex problem-solving.

Graduates Face A Shortage Of Work Experience Opportunities

Seven in 10 private employers considered previous experience a major recruitment criterion. Yet 76% offered neither internships nor work placements during the period covered by the survey. Only 15% offered internships and 12% provided placements to students or graduates.

Among businesses offering these opportunities, 30% did not pay participants. Nevertheless, 31% later recruited someone who had completed an internship or placement with them.

Private employers also prioritised enthusiasm for the job (63%) and relevant technical skills (59%). In the public sector, formal qualifications were the leading criterion (73%), followed by technical skills (67%) and previous experience (66%).

Vacancies And Skills Gaps Affect Organisational Performance

Recruitment difficulties are putting additional pressure on existing employees. Among organisations reporting an impact from hiring challenges, 80% of private-sector and 85% of public-sector respondents cited heavier workloads.

Overall, 89% of private employers and 95% of public-sector respondents said recruitment difficulties affected organisational performance to some extent, including daily operations and service quality.

Skills gaps also persist among existing employees. Employers estimated that 14% to 23% of private-sector staff and 12% to 33% of public-sector staff, depending on occupational category, did not have full proficiency in the skills their jobs required.

At the same time, 61% of private-sector employees and 91% of public-sector employees worked in organisations reporting at least some underuse of staff skills.

Employers Expect Shortages To Continue

Over the next five years, 56% of private employers and 63% of public-sector managers expect skills shortages. A quarter of private employers and 21% of public-sector respondents anticipate severe gaps.

Private businesses are particularly concerned about interpersonal, organisational and specialised technical skills. Public-sector organisations expect greater shortages in digital capabilities: 60% of employees worked in organisations anticipating such gaps, compared with 11% in the private sector. The figure reached 86% across the wider public sector and 43% in central government.

Both sectors identified interpersonal skills as their main training priority, cited by 36% of private employers and 40% of public-sector respondents. Digital skills ranked second, at 22% and 26%, respectively.

Connecting Education With Labour Market Needs

The findings point to the need for closer cooperation between universities and businesses, more practical work experience opportunities and stronger training for existing employees. Employers may also need to reconsider job requirements, career progression and employment conditions to attract suitable candidates.

Cyprus’s challenge is not simply to produce more graduates, but to connect education more closely with labour market demand and make better use of the talent already available.

The survey reflects employers’ assessments rather than independent tests of workers’ abilities. Differences in sampling and weighting also mean that comparisons between the public and private sectors should be treated with caution.

Luxury tourism is becoming an increasingly important contributor to Italy’s economy. In 2025, five-star and five-star luxury hotels generated an estimated €10.4 billion in direct tourist spending, accounting for 17.3% of the hotel sector’s total turnover of more than €60 billion. Spending per overnight stay was also significantly higher: €702 at luxury hotels, compared with €209 across the hotel sector as a whole.

The figures come from a Demoskopika study previewed by ANSA. They point to a segment growing much faster than Italian hospitality overall. Between 2008 and 2025, overnight stays in luxury hotels increased by 111.1%, while the figure for all hotel establishments rose by 14.5%.

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Five-star properties recorded nearly 14.9 million overnight stays and more than 4.9 million arrivals in 2025. Compared with 2024, arrivals grew by 5% and overnight stays by 5.7%. The growth highlights the importance of international visitors with higher spending power, but also reveals how concentrated luxury tourism remains geographically.

Rome Leads Italy’s Concentrated Luxury Tourism Market

Demoskopika’s Elite Index (Exclusive Luxury & International Tourism Evaluation) identifies Lazio, Trentino-Alto Adige, Campania, Valle d’Aosta and Sardinia among Italy’s leading regions for luxury tourism.

Lazio generated the highest estimated direct spending, at €2.3 billion in 2025, or 21.7% of the national total. Trentino-Alto Adige followed with €1.7 billion, ahead of Veneto (€1.4 billion), Lombardy (€1.3 billion) and Tuscany (€1 billion).

At provincial level, Rome accounted for 19.7% of all overnight stays in five-star hotels. Together, Rome, Bolzano, Venice, Florence and Milan represented 53.4% of the national total. Across the 17 leading luxury destinations identified by the study, the share reached 79.2%.

The geographical concentration is also reflected in hotel supply. Twenty-five Italian provinces have no five-star properties. In 2025, Italy had 809 hotels in this category, 38 more than a year earlier, offering nearly 110,000 beds. Despite the growth, five-star hotels account for just 4.8% of the country’s total hotel capacity.

Italy Competes For Europe’s High-Spending Travellers

Italy’s luxury tourism growth comes amid intensifying competition for international visitors. The country remains one of Europe’s largest tourism markets by volume, recording approximately 535 million overnight stays across all accommodation types in 2025, according to Eurostat. Spain followed with 513 million, France with 472 million and Germany with 440 million. Together, the four countries accounted for more than 60% of all overnight stays in the EU.

Measured against population, however, Spain recorded 10.4 overnight stays per resident, compared with 9.1 in Italy and 6.9 in France. This suggests Italy has room to increase the value generated per visitor and attract more high-end stays.

Investment data underline the competition. A 2025 European hotel-market report by BNP Paribas Real Estate found that Spain, the UK, France and Italy together accounted for more than half of European hotel investment. Italy attracted around €1.8 billion, or 9% of the European total, compared with €3.3 billion in Spain (16.4%) and 14.9% in France. The UK led the group with €4 billion.

Hotel performance also points to stronger demand at the higher end of the market. European revenue per available room (RevPAR) increased by 3.8% in the upscale segment in 2025, while budget hotels recorded a 1.9% decline. The gap suggests that demand for higher-end accommodation has been more resilient, despite continued pressure on household purchasing power.

Extending Luxury Tourism Beyond Peak Season

The economic benefits of luxury tourism remain unevenly distributed. According to Demoskopika, 11 international markets account for 62.2% of foreign overnight stays in Italian hotels: Germany, the United States, the UK, France, Switzerland, Austria, Spain, the Netherlands, Canada, Australia and Japan.

Visitors from these countries are estimated to have generated €21.4 billion in turnover across all hotel categories in 2025, including different components of tourist spending. Germany was the largest contributor at €6.39 billion, followed by the United States at €4.69 billion.

Demoskopika identifies opportunities beyond expanding the number of luxury hotels. Better use of existing capacity and a longer operating season could help spread the benefits more widely. Occupancy at high-end properties remains below the national average of 37.1%, particularly in southern Italy, where accommodation supply is newer or more seasonal.

Improved transport connections, supporting services and efforts to reduce seasonality will be important in extending luxury tourism beyond established art cities and resort destinations. Italy is already attracting high-spending travellers, but its next challenge is to turn that demand into more consistent economic benefits across regions and throughout the year.

China’s trade surplus has exceeded $1 trillion in the first 10 months of the year, as exports continue to grow despite persistent weakness in domestic demand. The figures come just ahead of an expected meeting between Chinese President Xi Jinping and U.S. President Donald Trump at the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, bringing trade tensions back into focus.

Exports Drive China’s Trade Surplus Higher

Exports rose 35.2% year on year to $412.3 billion last month, according to China’s General Administration of Customs. Imports increased by 41.6% to $307.1 billion. Despite the faster growth in imports, the trade surplus reached $1.04 trillion between January and October.

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China is now on course to surpass last year’s record surplus of $1.2 trillion. While the $1 trillion mark was reached in November last year, it was crossed earlier in 2026.

“Exporters have been the key driving force behind China’s economy this year,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. He expects export performance to remain strong in the near term and does not anticipate a significant change in China’s macroeconomic policy stance before the end of the year.

Demand for AI-related products, including computer chips, data-centre servers and networking equipment, has also supported export growth. Rising investment in AI infrastructure is creating new demand for manufacturers and technology suppliers, strengthening China’s export momentum.

Trade Growth Raises Stakes With Washington

Exports to the United States surged 32.9% last month, according to customs data. Xi and Trump are expected to meet at the APEC summit in Shenzhen on November 18 and 19, following several efforts to preserve a fragile truce in the countries’ trade conflict. These have included an extension of their trade arrangement and talks in Washington in September.

The summit could also bring Xi, Trump and Russian President Vladimir Putin together for trilateral discussions. However, the economic focus is expected to remain on U.S.-China relations and their implications for global trade.

China’s Trade Surplus With The EU Widens

Trade tensions are also increasing between China and the European Union. Beijing’s trade surplus with the bloc reached $310.7 billion in the first 10 months of the year, compared with $241.6 billion over the same period in 2025.

The widening imbalance is adding pressure on Brussels to protect European industries from what critics describe as unfair competition from lower-cost Chinese imports. Last month, talks in Beijing between EU trade chief Maroš Šefčovič and Chinese Commerce Minister Wang Wentao resulted in an agreement to limit exports of Chinese hybrid vehicles to Europe.

Weak Domestic Demand Leaves China Reliant On Exports

Strong overseas sales are helping offset subdued domestic consumption, which has remained weak for several years, while the property sector continues to struggle. Inflation data released on Monday also showed that price growth remains well below the government’s target of around 2%.

Exports are therefore playing a central role in helping Beijing meet its official economic growth target of 4.5% to 5.0% this year, the lowest such target in decades.

However, the record trade surplus also carries risks. Growing Chinese exports are intensifying concerns among trading partners about pressure on domestic manufacturers, potentially leading to new trade barriers, negotiations and further political friction.

Cyprus can help connect Europe with the Middle East and Asia—but turning that geographic advantage into lasting economic value will require stronger regional cooperation, trade links and investment in infrastructure, President Nikos Christodoulides said Monday.

Addressing the Economists Enterprise 22nd Annual Cyprus Summit, Christodoulides pointed to opportunities in shipping, energy, tourism, technology and digital services across the Eastern Mediterranean. He also warned that geopolitical tensions were disrupting trade, energy supplies and investment prospects.

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Economic resilience, he said, now depends not only on national security but also on the ability to absorb external shocks, diversify energy sources and trading relationships, protect critical infrastructure and attract investment.

A Strategic Crossroads For Trade And Investment

The Eastern Mediterranean’s position between Europe, the Middle East, North Africa and Asia gives the region significant commercial potential, Christodoulides said. Cooperation, he argued, could convert that geographic advantage into practical economic opportunities.

“Energy interconnections, trade corridors and port infrastructure are not simply technical or economic projects,” he said, adding that they also carry political and geostrategic significance. Decisions made now, he warned, will influence the region’s economic prospects and geopolitical balance for years to come.

One initiative he highlighted was the India-Middle East-Europe Economic Corridor, or IMEC. The corridor could improve trade and transport connections while opening new avenues for investment and economic security. “Our country has an important role to play in its implementation,” he said.

Building Links With India

Christodoulides also pointed to the anticipated signing of an EU-India Free Trade Agreement in Brussels next December, on the sidelines of the European Council and in the presence of Indian Prime Minister Narendra Modi. He said the agreement would make progress on IMEC more urgent by creating the potential to deepen commercial ties between Europe and India.

Cyprus is seeking to strengthen its position in that relationship. Christodoulides cited his recent visit to India, the opening of a commercial office in Mumbai and ongoing discussions to improve air connectivity between the two countries. Nicosia has also proposed an IMEC Group of Friends within the European Union to promote the corridor and build broader European support.

Geopolitical Risks Put Trade Routes In Focus

The president’s remarks came amid rising geopolitical uncertainty, with consequences that extend beyond the countries directly involved. He cited tensions around the Strait of Hormuz and Bab el-Mandeb, as well as Russia’s continuing invasion of Ukraine, as developments affecting European security, energy flows and international trade.

Obstructing or weaponizing critical commercial passages, he warned, can disrupt supply chains and inflict far-reaching economic costs. He also stressed that sovereignty, territorial integrity and respect for international law must be upheld consistently.

Europe, he said, needs to reinforce its resilience, competitiveness and strategic autonomy while assuming greater responsibility for its security. Strategic autonomy, he clarified, should not mean isolation; it should mean building a stronger Europe that can work effectively with international partners.

Cyprus Seeks A Broader Regional Role

Within that framework, Cyprus is aiming to move beyond what Christodoulides described as a traditionally single-issue foreign policy. The country wants to be seen as a stable and dependable bridge between the European Union and the wider Middle East and Gulf region.

“As a country, we seek to be part of the solution and not part of the problems and challenges in our region,” he said. Cyprus’s positive agenda, he added, is not directed against any country; it is intended to identify shared interests and create conditions for mutual benefit.

As an example, he cited an informal European Council meeting held in Cyprus in April. For the first time in that format, EU leaders and representatives of European institutions met with leaders from the wider region, including Egypt, Jordan, Lebanon, Syria and Gulf Arab countries. Discussions focused on specific projects for regional cooperation.

Christodoulides said the meeting showed how Cyprus could help facilitate dialogue between Europe and its neighbours—and turn diplomatic engagement into practical cooperation.

Cooperation On Climate And Resilience

The president also highlighted the Cyprus Regional Initiative on climate change, which brings together 13 countries to improve their collective ability to adapt to and mitigate climate impacts. He framed the initiative as part of a broader effort to strengthen regional resilience amid challenges that increasingly affect economic development and long-term stability.

The Eastern Mediterranean, Christodoulides said, faces a choice: remain defined by crises and competition, or develop into a region of meaningful cooperation, growth and shared benefit. Cyprus will continue to draw on its relationships with neighbouring countries, its EU membership and its geographic position to promote dialogue, he said.

“We extend a hand of cooperation to all those who wish to participate in this effort and become partners in the goal of building a region that is safer, more interconnected, more resilient and more prosperous,” he concluded.

The 10th edition of Web Summit in Portugal marks a new chapter for the technology conference. Running in Lisbon until next Thursday, this year’s event is looking beyond generative AI to focus on physical artificial intelligence: robots and autonomous systems designed to interact with and operate in the real world.

Humanoid Robots Move From Demonstrations To Real-World Applications

For the first time, humanoid robots will take part as official speakers, highlighting China’s growing influence in the sector. The machines were developed by Chinese companies, while the country is sending its largest-ever delegation to Web Summit.

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This shift reflects a broader change in the AI debate, with growing attention on autonomous agents that can interact with people and carry out practical tasks, rather than simply generate text and images.

Among the technologies on display is a wheeled robot with two arms developed by Galbot. Designed to work shifts in shops, pharmacies and factories, the machines will make their first appearances on opening night. During the four-day event, they will deliver talks and feature in demonstrations at exhibitor stands across the Feira Internacional de Lisboa and the MEO Arena. Delegations from China’s Ministry of Commerce and Cyberspace Administration are also expected.

AI Research And The Future Of Work On The Agenda

The programme will cover AI agents, technology-enabled scientific research, digital regulation and the impact of technology on the future of work. Organisers expect nearly 70,000 attendees, including 900 speakers and more than 2,000 startups.

The doors will open at 4:30 p.m., with the first main-stage speeches starting at 6 p.m. Portugal’s minister delegate for state reform, Gonçalo Matias, will lead the opening session.

Brazilian And Portuguese Startups Look For Global Opportunities

Around 300 Brazilian startups are expected to attend. One hundred are taking part through a mission organised by Sebrae and ApexBrasil.

On Tuesday, the organisations will announce up to 20 startups selected for an incubation programme in Lisbon, due to begin in March 2027. The initiative aims to connect Brazilian technology companies with European investors and support their international expansion.

Portugal is also represented by 78 companies at this year’s conference, many of which focus on artificial intelligence and health technology.

Web Summit’s Future In Lisbon Beyond 2028 Remains Uncertain

Web Summit co-founder and chief executive Paddy Cosgrave has yet to confirm whether Lisbon will continue hosting the event after 2028, when its €110 million agreement with the Portuguese government and Lisbon City Council expires.

Speaking to Portuguese newspaper Expresso last week, Cosgrave said he was in talks with most major European cities and expected to announce the conference’s future host at the 2027 edition.

Venue capacity could be a key factor in the decision. According to Cosgrave, Lisbon’s facilities have been operating at full capacity for years, prompting organisers to add 30,000 square metres of temporary structures to accommodate the event.

Cyprus’ trade deficit widened to €6.86 billion in the first nine months of 2026, as rising imports continued to outpace the value of exports, according to provisional figures from Cystat.

The deficit increased 10.2% from €6.23 billion in the corresponding period of 2025. Imports rose 12.1% to €11.76 billion, while exports grew 14.8% to €4.89 billion. Although exports recorded the faster percentage increase, their lower overall value meant the stronger growth was not enough to offset the rise in imports.

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September Exports Surge As Monthly Deficit Narrows

September offered a more favorable monthly comparison. Exports jumped 89.1% year over year to €939.3 million, up from €496.6 million in September 2025. Shipments to countries outside the European Union more than doubled, reaching €723.3 million from €323.9 million. Exports to other EU member states increased to €216 million, compared with €172.7 million a year earlier.

The September export total included €157.3 million in transfers of economic ownership of vessels, up from €108 million in the same month of 2025. Such transfers can significantly affect monthly trade figures, making the headline total more volatile than underlying trade activity.

Imports also increased in September, rising 19.7% to €1.49 billion from €1.24 billion. Imports from other EU member states reached €705.2 million, compared with €638.9 million, while imports from third countries climbed to €784.4 million from €605.3 million. The total included €58.9 million in transfers of economic ownership of vessels and aircraft, against €38 million a year earlier.

Despite the increase in imports, the monthly trade deficit narrowed to €550.3 million from €747.6 million in September 2025—a reduction of approximately 26.4%.

Domestic Exports Show Broad-Based Gains In August

Cystat’s final figures for August showed imports rising 15.8% year over year to €1.33 billion, up from €1.15 billion. Exports of domestically produced goods increased more sharply, advancing 29.8% to €518.5 million from €399.4 million.

Within domestic exports, industrial goods—excluding mineral fuels and oils, as well as stores and provisions for ships and aircraft—rose to €73.6 million from €71.2 million. Agricultural exports, on the same basis, increased to €7 million from €6.4 million.

Exports of foreign products moved in the opposite direction, falling 14.5% to €125.2 million from €146.5 million.

Halloumi Leads Cyprus’ Domestic Export Categories

In the first eight months of 2026, halloumi remained Cyprus’ leading domestic export category, excluding mineral fuels and oils and stores and provisions for ships and aircraft. Its export value reached €258.3 million. Pharmaceutical products followed at €226.1 million, while waste and scrap of paper, glass and metal accounted for €71.1 million.

The figures point to continued growth in several export categories, but the wider nine-month deficit underscores the scale of the import bill. Sustained progress in exports will matter not only for individual industries, but also for narrowing the gap between goods flowing into and out of the country.

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

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Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

Newly activated enforcement procedures by Cyprus’s Department of Lands and Surveys raise the stakes for sellers and mortgage lenders in property transactions. Amending Law 132(I)/2023, which took effect on December 12, 2023, strengthens buyer protections and sets out specific obligations for both parties. Noncompliance can trigger significant financial penalties, making thorough preparation essential before any sale agreement is signed.

The Seller’s Obligation To Disclose Encumbrances

Sellers must attach to the sale agreement, as an integral part of it, a property search certificate setting out registered encumbrances and prohibitions. The certificate must be dated no more than five working days before the agreement is signed.

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Failure to attach the certificate may result in a fine—even if the property is free of mortgages. Under the announced penalty scale, fines are:

• €500 for a sale price of up to €50,000
• €1,500 for a sale price of €50,001 to €200,000
• €4,000 for a sale price of €200,001 to €500,000
• €10,000 for a sale price above €500,000

This requirement is more than a procedural formality. It gives the buyer timely information and can help prevent disputes, particularly when a deposit is paid or the buyer takes on substantial financial commitments. Knowing about existing encumbrances before signing allows the parties to agree on appropriate payment terms and the steps needed to release and transfer the property.

Additional Protection When A Mortgage Exists

The law also establishes a procedure that can enable a buyer, subject to the statutory conditions, to pay the agreed amount into the seller’s designated account with the mortgage lender and secure the transfer of the property.

Where the relevant encumbrances are limited to a pre-existing mortgage or a previously deposited sale agreement, and no prohibition applies to the owner, depositing the new sale agreement requires either the lender’s written declaration (Form A) or the buyer’s confirmation (Form C). The special procedure does not apply in the same way when other encumbrances exist, such as court-registered memos.

After receiving the amount specified in Form A, the lender must issue a payment confirmation (Form B) and take the necessary steps to release the property from the mortgage or discharge the mortgage. If the lender issues the confirmation but does not complete the required action, the director of the Department of Lands and Surveys may, subject to the statutory conditions, proceed with the release or discharge and the property transfer.

This mechanism reduces the risk of a buyer being left unable to obtain the property despite having paid the purchase price. It is particularly relevant when a seller is experiencing financial difficulty: provided the legal conditions are met, the buyer has an additional route to protection that does not depend solely on the seller’s cooperation.

Penalties for a mortgage lender’s failure to comply are tied to the mortgage amount:

• €5,000 for a mortgage of up to €50,000
• €15,000 for a mortgage of €50,001 to €200,000
• €40,000 for a mortgage of €200,001 to €500,000
• €100,000 for a mortgage above €500,000

The scale underscores the importance of lenders responding promptly and meeting their statutory obligations.

Enforcement, Transition And Appeals

On February 13, the Department of Lands and Surveys announced that procedures for imposing and collecting fines had been activated. An information and compliance transition period ran from February 16, 2026, to May 16, 2026, and has now expired.

Sellers and mortgage lenders may appeal a fine to the Minister of Interior within 30 days of receiving notification of the decision. This provides an opportunity to seek a review and present relevant factual and legal arguments. It does not, however, remove the underlying obligation to comply with the law.

Preparation Is The Best Risk Management

The new provisions connect greater transparency with more effective buyer protection. But substantial fines alone cannot secure a property transaction. That requires timely review of the title deed, accurate completion of prescribed forms, clear communication with the mortgage lender and consistent compliance with the applicable procedures.

Every party should understand both its obligations and its rights well before signing. Obtaining appropriate legal guidance in advance is more effective than trying to resolve a breach after it occurs. In property transactions, compliance is not simply a formal requirement; it is a foundation for trust and security.