Cyprus and Lebanon are taking a significant step toward a long-discussed electricity interconnection project that could reshape energy links across the eastern Mediterranean.

Formal Request To The World Bank

According to reliable information, the two governments are expected to sign a joint letter within days requesting World Bank financing for an undersea electricity interconnection. The move marks the transition from political discussions to a formal international funding process.

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From Feasibility Study To Strategic Project

Nicosia and Beirut jointly approached the World Bank at the end of 2025 to prepare a feasibility study for the proposed project. The study is expected to examine technical feasibility, potential tariffs and the project’s commercial viability, all key factors in determining whether the interconnection can move forward.

Beyond creating a physical link between the two countries, the project could strengthen energy security, improve regional integration and expand access to wider electricity markets.

Possible Connection Point In Zouk

Lebanon’s Energy Minister Joe Saddi said in April that the most likely connection point would be the Zouk area.

He added that, if the project proceeds, Cyprus could eventually connect to the wider European electricity grid, creating a potential route for Lebanon to access the same network.

Such a development would extend the project’s importance beyond bilateral cooperation, positioning Cyprus as a potential energy bridge between the Middle East and Europe while giving Lebanon a stronger connection to the European electricity system.

A Broader Diplomatic And Energy Context

The initiative follows another milestone in relations between the two countries. On November 26, 2025, Cyprus and Lebanon signed a landmark agreement delimiting their Exclusive Economic Zones, strengthening the legal framework for closer cooperation in the eastern Mediterranean.

Taken together, the two initiatives suggest that energy, infrastructure and diplomacy are becoming increasingly interconnected as both countries seek to deepen regional cooperation and improve long-term energy security.

The effort to establish a new cooperative bank in Cyprus has entered its most decisive phase, with a public share offering aimed at raising €42 million now serving as the gateway to securing a banking licence and launching operations.

Published by Phileleftheros, the prospectus of Pancyprian Cooperative Holdings and Promotion of Cooperativism Limited outlines both the opportunities and the risks facing investors, while also detailing the institution’s governance structure and principal shareholders.

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A Capital Raise Designed To Unlock Licensing

Raising €42 million is intended to provide the capital required to satisfy regulatory requirements, complete the licensing process and finance the bank’s initial operations.

Without a successful fundraising round, the proposed institution cannot move forward as a licensed credit institution.

A Cooperative Ownership Model With One Vote Per Member

Among the principal shareholders, the Limassol cooperative society holds the largest stake at 28.22%, followed by the Police and Military cooperative society with 12.53%, Paphos with 12.11%, Nicosia with 8.34%, Regional Nicosia with 6.97% and Lhedra with 6.69%.

Voting rights, however, do not mirror ownership. Under the company’s statutes, each of its 199 members has one vote regardless of the number of shares held, reinforcing the cooperative governance model rather than a traditional shareholder structure.

Board Composition And Regulatory Oversight

Elected in October 2025 for a three-year term, the Committee of Administration consists of 19 members, 18 of whom are classified as independent. Panikos Hamba serves as chairman, while Evgenios Eleftheriou is board secretary.

Before operations can begin, board members, senior executives and heads of key functions must all pass regulatory “fit and proper” assessments, making governance one of the project’s most important licensing requirements.

Limited Conflicts Of Interest

According to the prospectus, no material conflicts of interest have been identified among board members or those involved in the offering. The only disclosed relationship concerns the employment of the daughter of Chairman Panikos Hamba at the law firm providing legal services to the company.

The Investment Comes With Significant Risks

Investors are warned that the project carries substantial risks. Because the shares will not be listed on a stock exchange, there will be no organised secondary market for trading them. Transfers will also be restricted to company members, limiting liquidity.

Dividend payments are not expected during the early years, as any future distributions will depend on the bank reaching sustainable profitability.

Execution risk is also significant. Success depends on securing a banking licence, recruiting experienced staff, building technology infrastructure, complying with regulatory requirements and managing cybersecurity threats.

Funding Remains The Biggest Challenge

Meeting the fundraising target is only one of several milestones. Regulatory approval, operational readiness and the ability to attract customers in a highly competitive banking market will all determine whether the project succeeds.

Should the capital raise fall short, or regulators decline to grant a banking licence, the project will not proceed, and investors’ funds will be returned in accordance with the terms of the offering.

Management also warns that available funding may prove insufficient to cover technology investment, recruitment, marketing and other start-up costs. Any shortfall could delay expansion plans, weaken competitiveness and reduce future profitability.

Start-Up Costs Highlight The Scale Of The Challenge

Launching the public offering is expected to cost about €950,000. Personnel expenses are projected to account for roughly half of administrative costs, rising from between €3.5 million and €5.5 million in the first year to between €8 million and €10 million by the fifth.

As of 31 March 2026, the company reported negative working capital of €48,500 and estimated funding needs of almost €38 million over the following 12 months, underscoring the importance of completing the capital raise successfully.

What Comes Next

If the fundraising and licensing process is completed successfully, the new cooperative bank plans to offer deposits, mortgages, business lending, payment services, cards, digital banking and insurance products.

For the moment, the project’s future depends less on its long-term ambitions than on clearing the financial and regulatory hurdles required to begin operating.

The Central Bank of Cyprus has welcomed the selection of Bank of Cyprus and JCC Payment Systems for the European Central Bank’s digital euro pilot, giving Cyprus a direct role in testing the bloc’s proposed digital currency.

Both Cyprus-based payment service providers are among 36 institutions selected across the euro area to participate in the next phase of the project, which forms part of the Eurosystem’s preparations for a possible digital euro.

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Cyprus Gains A Seat At The Table

In a statement, the Central Bank of Cyprus said it would work closely with both institutions and the ECB ahead of the pilot, describing their participation as an opportunity for Cyprus to help shape the future of digital payments in the euro area.

Scheduled to begin in the second half of 2027, the pilot will run for 12 months. During that period, participating payment service providers will test a beta version of the digital euro alongside the ECB and national central banks.

Testing Functionality Before Any Issuance Decision

Designed to evaluate the digital euro’s technical performance, operational framework and user experience, the programme will help refine the project’s design before any decision is taken on its launch.

According to the ECB, the beta version will closely resemble the digital euro proposed under draft legislation, although it will not have legal tender status.

More than 50 payment service providers applied after the ECB opened the selection process in March 2026. From those applications, 36 institutions were chosen to reflect a broad mix of business models and company sizes across the euro area.

Private Sector Interest Signals Momentum

“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” said ECB Executive Board member Piero Cipollone, who chairs the High-Level Task Force on a digital euro.

“We look forward to deeper engagement as we work with and learn alongside European payment service providers in developing a secure, efficient and inclusive digital euro,” he added.

Selected institutions will test different parts of the ecosystem. Some will provide beta digital euro services, including opening accounts and processing payments, while others will enable merchants to accept digital euro transactions. Several participants will perform both roles.

A Pan-European Testing Network

Alongside the ECB, the pilot will involve the Central Bank of Cyprus and the other 18 national central banks across the euro area.

Testing will include central bank staff, participating payment providers, merchants and e-commerce businesses. Participants will be able to make person-to-person payments both online and offline, as well as purchases at physical points of sale and through online retailers.

What Comes Next

Feedback gathered during the pilot will help refine the digital euro’s design and improve the user experience before any final decision on its introduction.

Bank of Cyprus and JCC Payment Systems will now work with the Central Bank of Cyprus and the ECB to complete preparations ahead of the pilot’s launch in 2027.

TikTok is mounting a public defence of its safety record as European policymakers step up efforts to restrict children’s access to social media, increasing pressure on major platforms to demonstrate that they can protect younger users.

Pressure Builds Across Europe

Speaking to CNBC’s Squawk Box Europe, Ali Law, TikTok’s director of public policy and government affairs for Northern Europe, said the platform was built with a “safety by design” approach aimed at protecting younger users.

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“We’re really conscious of the concerns that both parents and policymakers have in this area,” Law said. “We want people to have a healthy and safe relationship with the app because of the amount of benefits that people can get when they’re using it.”

Governments are increasingly moving to tighten rules around children’s use of social media. Australia became the first country to enforce a legal ban in December, while the U.K., France, Greece and Spain have all announced plans to introduce similar restrictions.

At the EU level, European Commission President Ursula von der Leyen confirmed this week that the bloc will move forward with measures aimed at limiting children’s access to social media, including the possibility of introducing a minimum age requirement.

The proposal follows recommendations from a special panel on child safety online established by von der Leyen.

“We in Europe believe that parents bring up our kids, and not predatory algorithms,” she said. “To that end, let me be very clear: social media is not a toy.”

TikTok’s Safety Playbook

Law said TikTok has introduced more than 50 default safety features for users under 16, including a one-hour daily screen-time limit and a 10 p.m. reminder encouraging teenagers to stop using the app. Although users can continue browsing, the prompts are designed to discourage excessive use.

The platform also restricts direct messaging for younger users and does not allow those under 16 to buy or sell products through TikTok Shop.

“All of these are little default aspects, little nudges to make sure that people have a balanced and healthy relationship with our app,” Law said. “That works in our interests, because if people are using it too much and are burnt out, they’re not going to get value from it.”

He added that TikTok invested $2 billion in trust and safety last year, reflecting the company’s growing focus on moderation, parental controls and product safeguards.

A Broader Industry Reckoning

The debate extends well beyond TikTok as regulators scrutinise how major social media platforms affect children’s wellbeing.

Earlier this year, TikTok settled a high-profile lawsuit alleging that platforms including Instagram and YouTube contributed to mental health problems among young users through addictive features such as infinite scrolling. In the same case, a jury later found Meta and Google negligent for failing to warn users about risks associated with their platforms.

As governments consider tougher age limits and new accountability rules, social media companies face growing pressure to demonstrate that user engagement can coexist with meaningful protections for younger audiences.

Minimum Pensions In Europe Reveal A Deep Policy Divide

As Cyprus continues discussions on pension reform, with Labour Minister Marinos Moushiouttas considering planned increases to minimum pensions, new parliamentary research highlights just how differently European Union countries support retirees.

A study prepared by the Cyprus Parliament Research Service at the request of AKEL MP Nikos Kettiros shows that minimum old-age pensions across the bloc range from as little as about €250 per month in some countries to more than €2,350 in others. The differences reflect each country’s pension system, contribution rules, living standards and cost of living.

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The Cypriot Baseline

In Cyprus, the full basic pension stands at €483.77 per month, while the minimum pension for beneficiaries without dependents is €411.20. The monthly social pension amounts to €391.85.

These figures form part of a broader debate over how much income protection the state should provide in retirement and how that support should be shared between the social insurance system and general taxation.

A Wide Range Across Europe

The parliamentary study highlights striking differences in minimum pension levels across the EU.

Luxembourg provides the highest minimum old-age pension, at €2,350.89 per month for retirees with 40 years of insurance. Austria follows with €1,273.99 for single pensioners and €2,009.85 for married couples, while Belgium pays roughly €1,500 net per month for employees and self-employed workers with a full 45-year career.

Elsewhere, guaranteed pensions remain below €1,100. The Netherlands provides between €1,045.91 and €1,527.63 depending on household composition, Sweden pays €1,095 to single pensioners and €992 to married pensioners, while Finland’s guaranteed pension stands at €986.30 per month.

Southern Europe offers lower minimums. Greece’s full national pension is €436.40, Portugal pays between €331.79 and €480.08 depending on contribution years, while Italy’s minimum pension varies annually according to each beneficiary’s circumstances.

Across Central and Eastern Europe, statutory minimums are generally lower still. Slovenia provides €774.67, Latvia calculates its minimum pension using a reference income of €754.74, while Poland pays approximately €440 gross per month. Slovakia’s minimum pension stands at €397.70, Estonia’s national pension at €393.26 and Bulgaria’s at €322.38. Romania guarantees €253 per month, the Czech Republic €255, while Hungary records the lowest statutory minimum in the study at around €74 per month, although eligibility rules differ significantly from country to country. Croatia also applies a different model, calculating minimum pensions according to years of pensionable service rather than setting a fixed amount.

Countries Without A Fixed Minimum Pension

Not every EU country operates with a single statutory minimum pension.

France relies on a guaranteed minimum pension linked to years of insurance and eligibility for a full pension. In 2025, it stood at €747.69 per month and could rise to between €800 and €850 for those meeting the full contribution requirements.

Germany also has no legislated minimum pension. Retirement income depends on contributions and earnings throughout a person’s working life, while lower-income pensioners may receive additional support through the country’s basic security scheme, which can amount to roughly €900 to €1,000 per month depending on individual circumstances.

Lithuania follows a similar approach, supplementing lower pensions automatically to meet minimum consumption needs rather than guaranteeing a fixed statutory amount. In 2025, the minimum consumption threshold was estimated at €450 per month.

Why The Numbers Matter

The comparison illustrates that minimum pensions are shaped by far more than generosity alone. Contribution histories, residency requirements, household composition and national wage levels all influence what retirees ultimately receive.

For Cyprus, where pension reform remains under discussion, the findings provide useful context. The debate is no longer simply whether minimum pensions should increase, but how any changes can balance fiscal sustainability with adequate income protection and the long-term resilience of the country’s social security system.

Cyprus has emerged as one of the European Union’s clearest examples of how the benefits of the energy transition are not being shared evenly.

A Wider Divide Than Most Of Europe

New Eurostat data show that 30.3% of Cypriots not at risk of poverty or social exclusion lived in homes that had undergone energy efficiency improvements during the previous five years. Among those at risk of poverty or social exclusion, the figure dropped to 16.7%.

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The resulting gap of 13.6 percentage points ranks among the three widest in the EU.

Only the Netherlands recorded a larger disparity, with 63.3% of people not at risk of poverty living in upgraded homes compared with 45.3% of those at risk, a difference of 18 percentage points. Denmark followed with a gap of 13.5 percentage points, as 36.4% of higher-income households had benefited from energy efficiency improvements versus 22.9% of vulnerable households.

The EU Picture Still Favors Better-Off Households

Across the EU, 23.9% of people lived in homes that had undergone energy efficiency improvements over the previous five years.

The overall figure, however, masks a persistent inequality. Only 17.4% of people at risk of poverty or social exclusion lived in upgraded homes, compared with 25.6% of those not at risk.

For lower-income households, access to improvements such as better insulation, more efficient heating systems and upgraded windows can significantly reduce energy bills while improving resilience to future price increases.

Netherlands Leads, Italy Trails

The Netherlands recorded the highest overall share of residents living in energy-efficient homes, at 60.5%, followed by Denmark at 34.0%. France and Slovenia shared third place, with 33.3% each.

Italy ranked last at just 2.6%, followed by Malta at 7.8% and Greece at 9.5%.

A Challenge For Europe’s Green Transition

The figures suggest that while energy efficiency upgrades are becoming more common across Europe, access remains uneven both between and within member states.

For policymakers, the challenge extends beyond improving buildings. Ensuring that lower-income households can benefit from the energy transition will be essential if Europe wants to reduce both emissions and energy poverty at the same time.

Spotify Expands Its AI Playbook

Spotify is taking another step toward making artificial intelligence a core part of how users discover and control audio. On Tuesday, the company announced that Premium subscribers can now hold interactive conversations with the app to find music, podcasts and audiobooks.

The feature is rolling out in beta to English-speaking Premium users aged 18 and over in the U.S., Ireland and Sweden on iOS and Android.

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How The New Feature Works

Rather than relying on a traditional search bar, users can type or speak to Spotify and engage in back-and-forth conversations within the Home and Now Playing views. The experience is designed to make content discovery more natural and context-aware.

Spotify says users can ask for recommendations, revisit their listening history or learn more about songs, artists, podcasts and audiobooks. They can also ask questions about their own listening habits, such as when they first played a track or which genres they stream most often.

AI Becomes A Bigger Part Of Discovery

Spotify confirmed to TechCrunch that the feature combines the company’s own AI technology with models from multiple providers, selecting the most suitable system depending on the task.

The launch builds on Spotify’s broader AI strategy, which already includes its AI DJ, AI-powered playlist features and integrations with third-party chatbots such as ChatGPT.

A More Personal Listening Assistant

Users can give open-ended prompts such as “play some artists I haven’t heard before” and refine the results through follow-up requests, including adding a specific artist, focusing on recent releases or changing the mood of the recommendations.

The assistant can also perform actions such as saving songs, adding tracks to the playback queue and following artists directly within the conversation.

The latest rollout reflects Spotify’s wider push to replace traditional search and navigation with a more conversational experience, turning AI into a personalised listening assistant rather than simply another discovery tool.

David Beckham-backed startup IM8 has secured up to $1 billion in financing from General Catalyst’s Customer Value Fund, according to a company announcement on Tuesday.

How General Catalyst’s Customer Value Fund Works

The financing is not a traditional venture capital investment. Instead, General Catalyst’s Customer Value Fund (CVF) provides non-dilutive growth capital through a structure that resembles a loan, with repayments linked to future revenue under a pre-agreed cap.

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That means General Catalyst does not take an ownership stake in IM8, allowing the company to raise capital without diluting existing shareholders. The model is designed for businesses with predictable recurring revenue and a proven ability to turn additional marketing investment into growth.

Inside IM8’s Growth Story

IM8 was co-founded by chief executive Danny Yeung, founder of health technology company Prenetics, which went public in 2022. According to the company, the idea for IM8 emerged after Yeung met David Beckham, who later became a strategic partner in the business.

The company develops longevity-focused nutritional products, including a subscription-based daily vitamin drink containing ingredients such as açai fruit extract and coenzyme Q10.

Why This Deal Matters

Under the agreement, General Catalyst will finance up to 70% of IM8’s customer acquisition costs. In return, it will receive a capped share of the revenue generated by those customers based on a predetermined gross-margin formula.

Once the agreed repayment threshold is reached, all future revenue from those customers will revert to Prenetics.

The deal highlights a broader shift in startup financing, as companies with strong recurring revenue increasingly turn to non-dilutive funding instead of traditional equity rounds. General Catalyst used the same model with Grammarly, which secured $1 billion through the fund in 2025 before acquiring Superhuman.

Plans to revive Cyprus’ cooperative banking model could strengthen competition in the country’s financial sector, improve consumer choice and deliver broader economic benefits, according to Argyris Alexandrou, president of the Cyprus Association of Economics Teachers.

His comments come as efforts to re-establish the Pancyprian Cooperative Bank enter a key fundraising phase following approval of its public offering prospectus by the Cyprus Securities and Exchange Commission (CySEC).

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A Capital Raise With Broader Ambitions

A public share offering will run from July 22 to November 17, 2026, with up to 42 million new shares, each with a nominal value of €1, available through the Athlos Capital platform.

Proceeds from the offering will be used to establish a new cooperative bank through a newly created holding company, allowing individuals and organisations to become shareholders.

“The effort being made is certainly for the common good, and we welcome it,” Alexandrou said. “It is positive that it is being recreated in such a short period of time.”

A Different Banking Model

Alexandrou said the cooperative bank would differ from commercial lenders by placing greater emphasis on serving households and vulnerable groups rather than maximising profits.

“When the cooperative was created, it was established for a good purpose and to protect vulnerable and poorer social groups,” he said.

Competition Could Benefit Consumers

Beyond its social role, Alexandrou believes the return of a cooperative bank could encourage stronger competition in a banking sector that has remained highly profitable since Cyprus’ 2013 financial crisis.

Banks today generate substantial income not only from lending but also from charges on everyday banking services, he noted.

“The existence of another bank, such as the Cooperative, will provide greater incentives for more businesses to compete, ultimately leading to better interest rates for citizens,” he said.

Public Ownership At The Centre

Alexandrou also welcomed the decision to allocate most of the new shares to individual investors, arguing that the ownership structure reflects the bank’s cooperative mission.

“The project is intended for the people, so it is more appropriate that the shares are allocated to the people,” he said, adding that shareholders would help shape the institution’s future through voting rights.

Under the proposed structure, 60% of shares will be reserved for individual investors and 40% for Cypriot companies. Should demand exceed expectations, the offering could be expanded from 42 million to as many as 100 million shares, in line with the company’s authorised share capital.

Licensing Remains The Final Step

Before operations can begin, the new bank must still obtain licences from both the Central Bank of Cyprus and the European Central Bank. Organisers are already preparing the required applications.

If the fundraising succeeds and regulatory approval is secured, the cooperative bank could return to Cyprus’ banking sector, introducing a new source of competition for consumers and businesses.

Planning and permitting delays are quietly becoming one of the biggest cost drivers in Cyprus’s housing market, adding an estimated €60,000 to the price of the average new apartment without increasing developers’ profits.

That is the warning from Yiannis Misirlis, chairman of the Cyprus Property Developers Association (CPDA), who argues that delays, rather than construction costs alone, are becoming one of the biggest drivers of housing affordability.

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A Realistic Project, A Very Different Outcome

To illustrate the impact, Misirlis pointed to a residential development of 125 apartments with a €7 million land cost and €25 million in construction and development expenses, bringing the initial investment to €32 million.

He compared two scenarios. In the first, permits are secured within six months, and construction begins immediately, allowing the project to be completed two years later. In the second, planning approvals delay construction by four years, while the build itself still takes two years.

“At first glance, the only difference appears to be time. In reality, the entire financial structure of the project changes,”

Misirlis said.

Where The Costs Accumulate

Keeping €7 million tied up for four years creates significant financing costs. Using a 6% cost of capital, Misirlis estimates that land holding alone adds about €1.7 million.

Professional and administrative costs also continue to accumulate while the project awaits approval, adding an estimated €800,000 over four years.

Construction inflation further increases the bill. Assuming costs rise by 4% annually, the original €25 million construction budget grows by roughly €3.8 million.

Together, those factors add about €6.3 million to the project before any profit is taken into account. Misirlis noted that the estimate excludes higher financing costs, interest rate movements, energy price increases, legal disputes, additional banking charges and regulatory changes.

How Delays Affect Apartment Prices

In the first scenario, a €32 million project would require total sales of around €38.4 million to achieve a commercially sustainable 20% profit margin, translating into an average selling price of roughly €307,000 per apartment.

After four years of permitting delays, development costs rise to about €38.3 million. Maintaining the same profit margin pushes total sales to approximately €46 million, increasing the average apartment price to around €368,000.

“The developer’s profitability has not increased by a single euro. Yet the average selling price rises by about €60,000 per apartment solely because of delays in the permitting process,”

Misirlis said.

A Supply Problem, Not Just A Cost Problem

Misirlis argues that the impact extends well beyond a single development. Lengthy approval processes reduce the number of projects that can be completed over time, limiting housing supply while placing further upward pressure on prices.

For that reason, he believes planning efficiency should be central to any discussion about housing affordability.

“Any meaningful conversation about affordable housing must address the efficiency of the planning and permitting system. When approvals immobilise capital for years, increase development costs, constrain housing supply and create uncertainty, the resulting costs are ultimately transferred to households,”

he said.

He stressed that faster permitting should not come at the expense of planning standards or environmental safeguards.

“No responsible developer is asking for fewer checks. We are asking for the same checks to be completed within reasonable and predictable timeframes,”

Misirlis said.