Meta’s newly announced Muse Charm is already prompting a familiar question: is this a clever attempt to make AI feel more approachable to mainstream consumers, or simply the latest entry in a growing graveyard of flashy hardware that failed to catch on?

Early reactions have been mixed. But one thing is clear: the form factor is timely. In a market increasingly shaped by aesthetics, personalization, and nostalgia, the Charm arrives with the right visual language for the moment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Device Designed For A Generation That Likes To Carry Its Personality

For Gen Z consumers, especially, the idea of technology as an accessory is hardly far-fetched. In the post-Labubu era, dangling objects have become cultural currency — from keychains and mini plush toys to beauty products reimagined as bag charms. The appeal is not purely decorative. These items function as signals of identity.

That is precisely why the Charm may resonate. Like the beauty-bag charm trend seen across products such as lip glosses, hand sanitizers, and fragrances, the Muse Charm blends utility with self-expression. It is not just a device. It is a style object.

Hailey Bieber’s Rhode lip case helped push that idea into the mainstream by turning a lip product into something closer to a fashion accessory. The brand’s commercial success underscored how powerful that overlap can be: beauty and utility are no longer separate categories, but increasingly part of the same consumer logic.

The same goes for Labubu, the fuzzy collectible that evolved from niche toy to global phenomenon. While demand for the character may have cooled, the broader bag-charm category has not. Analysts now expect the global market for these accessories to surpass $1 billion by 2030.

The Charm Fits A Wider Retro-Tech Revival

Meta’s Muse Charm also taps into a broader retro-tech movement that has been gaining momentum. Digital cameras, flip phones, iPods, CDs, cassette tapes, wired earbuds, and even landline phones are all finding new life among younger consumers who are increasingly skeptical of always-on, algorithmically optimized technology.

That skepticism has created room for objects that feel tangible, controllable, and personal. For many young people, especially women driving a great deal of this trend, physical tech offers something the digital world often does not: a sense of ownership.

That is part of the appeal behind the growing popularity of so-called cyberdecks, DIY portable computers that are often decorated with jewels, flowers, stickers, pearls, and other embellishments. The point is not just function. It is intimacy.

The Apple Watch Trend Shows The Market Already Exists

There is another, more immediate reference point for Muse Charm: the growing TikTok-driven trend of turning older Apple Watches into keychains, pendants, and bag accessories. Across Amazon, Walmart, eBay, and Etsy, thousands of such products already exist, ranging from practical straps to decorative cases.

In many cases, these items are being worn less as gadgets and more as fashion objects. That distinction matters. It suggests the market is already primed for devices that blur the line between technology and accessory — especially when the technology is small enough to personalize and visible enough to signal taste.

In that sense, Meta is not inventing a new behavior so much as trying to package an existing one.

Meta’s Biggest Challenge Is Not Design. It Is Trust.

Still, good timing does not guarantee success. The biggest obstacle facing Muse Charm may not be product-market fit, but Meta itself.

The company has spent years eroding consumer trust through repeated privacy controversies, regulatory penalties, and public scrutiny over harms to minors. That history is difficult to separate from any new device that asks users to invite Meta even deeper into their daily lives.

And that is the central tension. If Muse Charm is positioned as a free or low-cost AI companion, the real currency may not be the hardware itself but the data it generates. Meta has said it plans to monetize Muse through a small transaction fee, but the broader business model is unmistakable: highly personalized advertising powered by highly personal behavior.

For consumers, the calculation may come down to a familiar tradeoff. The device may be playful, fashionable, and culturally on point. But whether users are willing to trust Meta with another layer of their lives is a far harder question.

That may ultimately determine whether Muse Charm becomes a breakout product — or just another well-designed gadget that could not overcome the baggage of the company behind it.

President Donald Trump opened Chinese President Xi Jinping’s state visit to the United States by highlighting what he called a “truly great friendship” — a carefully calibrated message of warmth as the two leaders prepared to confront some of the most sensitive issues in the world’s most consequential bilateral relationship.

A Diplomatic Opening With Strategic Undercurrents

Speaking before formal talks at the White House, Xi said he was “ready to work with you to steer the giant ship of China-US relationship on a steady course toward the future,” urging both sides to avoid “conflict and confrontation.”

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

He framed the relationship between the world’s two largest economies as one that carries global consequences, arguing that the United States and China “shoulder a historic responsibility of advancing human development and progress.” His message was clear: the relationship must be managed with discipline, not volatility.

“We can certainly find the right path for two great countries to get along on this planet we both call home,” Xi said, adding that “through candid, in-depth, and continued dialogue, our two countries can understand each other better, seek common ground, while shelving differences and build up mutual trust.”

Trump, for his part, invoked the long arc of the relationship, saying that since his first election in 2016, he and Xi had “forged a friendship, a truly great friendship, actually, built on mutual respect and the vital interests of our people.” He also referenced cooperation during World War II, underscoring the historical dimension of the encounter.

The Real Agenda: Trade, Security And Technology

Behind the diplomatic language, the two sides were preparing for difficult negotiations. Trump said the discussions would focus on foreign affairs, trade, financial cooperation, security and artificial intelligence, which both governments have identified as a major strategic issue.

Washington and Beijing have spent months trying to manage a relationship defined by rivalry as much as interdependence. Trump said the United States and China were working toward “more balanced” trade relations, a signal that tariff pressure, market access and industrial competition remain central to the talks.

Xi, meanwhile, said he hoped “Chinese companies are treated fairly here in the United States,” while welcoming U.S. firms in China. “Competition should be a healthy one and should be kept within bounds,” he said, a line that reflects Beijing’s effort to present competition as manageable rather than existential.

Iran, Taiwan And The Limits Of Cooperation

The talks come against a backdrop of tensions that extend far beyond trade. China has resisted Trump administration pressure to use its economic leverage over Iran to help end the war there, despite its own dependence on Gulf energy supplies. Beijing has condemned the U.S. and Israeli military campaign, and Xi has previously warned that the conflict reflected a return to what he described as “the law of the jungle.”

Taiwan is likely to remain one of the most sensitive flashpoints. Xi is expected to press Trump once again to permanently halt U.S. arms sales to the island, which Beijing claims as part of its territory. Trump, however, has previously described arms sales to Taiwan as a “very good negotiating chip” — a blunt reminder that the issue remains embedded in broader geopolitical bargaining.

Trade Truce Buys Time, Not Certainty

On trade, China is seeking relief from U.S. export controls on advanced semiconductors and other cutting-edge technologies. The two countries agreed on Wednesday to extend by two months a one-year trade truce that was due to expire on November 10, giving both sides more time to pursue a more durable agreement.

That extension may reduce immediate market anxiety, but it does little to resolve the structural tensions at the heart of the relationship: industrial policy, technology controls, strategic competition and mutual suspicion.

“It should be a race of catching up with one another, not a wrestle in which one either wins or loses,” Xi said, offering a message of managed rivalry rather than open confrontation.

Artificial Intelligence Emerges As A Shared Concern

Artificial intelligence has emerged as one of the rare areas where both governments appear to see the need for guardrails. Xi said the two countries have a responsibility to ensure that AI remains under human control. “We have both the capability and responsibility to develop and manage AI for good and ensure that a development of AI is always under human control and serves the well being of the people,” he said.

Trump also highlighted the issue in a social media post earlier in the day, saying artificial intelligence would be high on the agenda amid rising global concern about its potential risks. “I want to leave it exactly where it is,” Trump wrote. “That is China’s position also.”

Earlier this week, finance ministers from both countries met to discuss a proposed “notification mechanism” for AI incidents, a modest but notable sign that Washington and Beijing are at least exploring ways to reduce the risk of technological escalation.

Soft Power Signals: Students And Pandas

As the opening remarks concluded, Xi announced that China would invite 100,000 American youth to study and exchange in the country over the next five years. He also said China would send two pandas to the Atlanta zoo, calling them an “envoy of friendship.”

The gesture was symbolic, but symbolism matters in diplomacy — especially when the substance of the relationship remains fraught. In the end, the visit underscored a familiar reality: Washington and Beijing may speak in the language of cooperation, but they are still negotiating the terms of strategic competition.

Mark Zuckerberg has spent years trying to control the hardware layer through which people access Meta’s services. Now, as he positions Muse as the centerpiece of the company’s artificial intelligence strategy, he is making a renewed bet that consumer devices will turn that ambition into a durable business advantage.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Meta’s New AI Push Arrives Early

At Meta’s annual Connect conference, held a week before OpenAI’s major developer event, the company said that by the end of 2026 there will be more than 100 styles of AI glasses. Zuckerberg also unveiled a new pendant, the Muse Charm, though he did not disclose pricing.

The timing was deliberate. Meta was late to generative AI and has trailed OpenAI, Anthropic and Google, each of which has built a stronger lead with both models and products. Zuckerberg is now attempting to close that gap with Muse, an app designed to function like a personal assistant by handling tasks such as email, travel booking and online shopping.

Investors Are Buying The Hardware Story

Markets have responded positively. Meta’s stock rose 4.5% on Thursday and has gained more than 25% since the company introduced Muse earlier this month. Investors appear willing to give Zuckerberg another chance after Meta failed to create a meaningful consumer market for virtual reality following its rebrand from Facebook to Meta five years ago.

“Meta Connect 2026 more explicitly attached Muse AI as a killer app fused deeply into the hardware strategy, from AR glasses and extending into Muse Charm, a dedicated keychain-like device providing rapid access to Muse,” Mizuho analysts wrote in a Thursday note. The firm, which rates the stock a buy, said Meta’s AI progress should continue to drive multiple expansion in the shares.

A Pendant Built For The AI Era

The Muse Charm looks like a hybrid between a children’s keychain toy and a wearable alert device. Zuckerberg said Meta still needs to finalize the materials and component layout before the product is ready for the holidays.

The device is meant to give users a faster, more direct way to reach their AI agent. Zuckerberg said it will include a fingerprint sensor that activates voice interaction with Muse. Meta also said Muse will soon be integrated into its smart glasses, giving users hands-free access simply by speaking the agent’s name.

Meta Tries To Reduce Its Dependence On Apple

For Zuckerberg, the hardware strategy is also about distribution power. Meta remains dependent on Apple for access to consumers, a vulnerability sharpened after Apple’s 2021 privacy changes reduced the effectiveness of app-based advertising targeting.

Meta has had some success in smart glasses through its partnership with EssilorLuxottica, the parent company of Ray-Ban. The company also introduced slimmer, lighter Meta VR Glasses, which will sell for $1,299 next year. That marks Meta’s first VR launch since the $299 Quest 3S in 2024.

OpenAI Is Moving Toward Hardware Too

The competition is intensifying. As OpenAI prepares for its DevDay conference, expectations are rising that the company could introduce its own long-rumored hardware product. Reports suggest the device may resemble a hockey puck-style speaker. OpenAI declined to comment.

Meta’s recent momentum has also been helped by Muse’s rapid ascent to the top of Apple’s App Store, surpassing ChatGPT. At the same time, OpenAI and Anthropic are facing growing scrutiny over the potential risks of their models, with critics and executives raising alarms about possible harms.

The Real Test Is Consumer Demand

Even with the investor enthusiasm, analysts and operators say the bigger question is whether consumers actually need another device. Smartphones already do much of what Meta is promising, and the Muse Charm must prove it can offer a simpler, faster experience rather than adding friction.

Anthony Ferry, chief executive of e-commerce company Wayvia, said the device would need to be easier to use than a phone. “If I still have to pull out my phone to finish the job or fix the order, it’s just another thing to charge,” he said.

Anshika Jain, an analyst at Counterpoint Research, sees potential in the category. She said Muse Charm reflects a broader shift in how consumers may use AI in daily life, especially when they need context-aware assistance on the move. “At the core is the Muse AI agent, which is designed to understand context and take actions in a faster way rather than just responding to queries,” she said.

Monetization Remains The Critical Question

Meta still has to prove that the surge in interest around Muse is more than a trend. It also needs a viable business model. Amazon has already blocked Muse from scanning its site to shop for customers, following similar restrictions imposed on Perplexity, OpenAI and Google.

Zuckerberg said Meta expects to make money over time by taking a small fee from transactions. That approach, however, raises a practical question for businesses: whether Muse is generating new demand or simply diverting existing demand into Meta’s ecosystem.

“If it brings you a customer you wouldn’t have reached, great,” Ferry said. “But if the same customer buys the same product through another channel, that isn’t automatically a new sale.”

William Blair analyst Ralph Schackart said Meta has outlined a clear monetization model, expecting to generate revenue primarily by taking a small fee on transactions completed through Muse while keeping the product free for most users.

For Zuckerberg, the strategy is familiar: pair software with proprietary hardware, reduce dependence on gatekeepers and create a new consumer habit before rivals can define the market. The difference this time is that the AI boom gives Meta a clearer narrative, and perhaps a faster path to relevance, than the metaverse ever did.

H&M Bets On Speed, Flexibility And Proximity

H&M is accelerating a broad operational reset as it seeks to move faster on fashion cycles, improve efficiency and defend market share in an increasingly unforgiving retail landscape, Chief Executive Daniel Erver said on Thursday.

The Swedish retailer is buying more merchandise with shorter lead times and from factories closer to its core markets, a shift designed to help it respond more quickly to fast-changing trends and erratic weather patterns that can make demand harder to predict.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

“We are able to get product from having a first rough idea to the customer in six weeks, and when we talk about shortening the lead times, it is about increasing the share that we buy in that way,” Erver said in an interview with Reuters. The company is trying to make that model central to its operating playbook rather than an exception.

Western Europe Remains The Pressure Point

The strategy comes as sales growth remains subdued. H&M reported a 1 per cent rise in third-quarter sales in local currency terms, but revenue in Western Europe, its largest market, fell 1 per cent. Erver said consumers in the region have been “under a lot of pressure for a long time,” reflecting the strain on household spending across the continent.

He also pointed to logistics changes, including the closure of H&M’s Belgian warehouse, as a factor weighing on revenue.

“We are not yet where we want to be, but step by step, we are firmly building a faster and more flexible and customer-focussed H&M,” he said.

Energy Costs And Geopolitics Add To The Challenge

H&M is also contending with higher transport costs and supply-chain disruptions linked to the war between the U.S. and Israel and Iran, which has affected shipping and air freight. At the same time, rising fuel prices in Bangladesh — one of H&M’s key sourcing hubs — are adding pressure to production costs.

Erver said the company is working with suppliers in Bangladesh and other markets to accelerate a shift toward renewable energy. That effort, he said, is both a climate imperative and a resilience strategy.

“It’s a good way to accelerate the transformation that we need to lower the CO2 emissions, but also build resilience to geopolitical challenges,” he said. H&M expects to fully phase out coal-fired boilers from its supply chain this year, a meaningful step in its decarbonization push.

One-Off Tariff Refund Lifts Profit

Despite sluggish sales momentum, H&M delivered a sharper-than-expected profit increase in the fiscal third quarter, helped by a one-time refund of U.S. tariff payments. Operating profit rose to 6.04 billion Swedish crowns, or about $608.63 million, from 4.91 billion crowns a year earlier, beating the 5.14 billion crowns forecast in an LSEG poll.

The company cautioned, however, that it does not expect further tariff refunds. That warning, combined with the weak sales trend, disappointed investors. H&M shares fell as much as 3 per cent at the open and were still trading about 2 per cent lower later in the session.

Looking ahead, H&M said September sales would rise 1 per cent in local currencies, matching the pace of the June-to-August quarter but trailing the stronger momentum reported by Inditex, the owner of Zara, which posted 9 per cent growth earlier this month.

Store Closures, Online Growth And A More Selective Footprint

The retailer is continuing to streamline its physical footprint while investing in the parts of the business that can improve speed and availability. H&M has reduced its store count and refurbished existing locations, with around one-fifth of its 4,000 stores upgraded so far.

It is also spending on logistics as online sales have climbed to more than 30 per cent of total revenue. New warehouses in Europe are scheduled to come online this year and next, part of an effort to improve product availability and strengthen fulfillment capacity.

Bracing For Fiercer Competition In E-Commerce

Erver said he welcomed the European Union’s decision to impose customs fees on low-value ecommerce packages, a policy he has argued is necessary to create fairer competition with platforms such as Shein and Temu. He downplayed the direct impact on H&M’s own sales, but the move underscores how aggressively regulators are responding to the rise of ultra-low-cost online retail.

The company’s competitive backdrop remains intense. Shein and Inditex continue to set the pace on speed and pricing, leaving H&M to prove that its turnaround can translate into sustained growth, not just improved margins.

H&M said third-quarter sales totaled 57.189 billion Swedish crowns, compared with 57.017 billion a year earlier.

Meanwhile, the billionaire heirs of founder Erling Persson have quietly increased their stake in the company, fueling speculation that a future privatization bid could eventually emerge. For now, though, the immediate test is more basic: whether H&M can turn operational discipline into durable sales momentum.

Greek retail group Jumbo reported a solid first half for 2026, with net profit rising 2.92 per cent year on year to €120.6 million and sales increasing 4.42 per cent to €519.26 million. The company also reaffirmed its full-year guidance and approved an extraordinary cash distribution of €1 per share, underscoring both operational resilience and a still-strong balance sheet.

Cyprus Normalises After Early Disruption

One of the clearer signs of stabilisation came from Cyprus, where Jumbo said the market has gradually recovered after initial disruption linked to the island’s proximity to conflicts in the Middle East. Conditions improved over the summer, helping restore a more normal trading pattern in one of the retailer’s four directly operated markets.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Jumbo currently runs six stores in Cyprus, alongside 53 in Greece, 10 in Bulgaria and 20 in Romania, bringing its directly operated network to 89 stores. The company is also preparing to open a new store in Cyprus in 2027 as part of a broader expansion programme across its core markets.

Sales Growth Holds Up In A Challenging Environment

The first half unfolded against a difficult macroeconomic backdrop, with geopolitical tensions continuing to affect energy prices, freight rates and supply chains, while also weighing on consumer confidence. Even so, group sales climbed to €519.26 million from €497.28 million a year earlier.

Gross profit increased 3.77 per cent to €277.94 million, EBITDA rose 2.81 per cent to €170 million, and net profit came in at €120.6 million, compared with €117.18 million in the first half of 2025. Management left its 2026 outlook unchanged, still expecting sales growth of about 5 per cent and net profit in the range of €310 million to €320 million.

The company noted that the second half traditionally contributes a larger share of annual sales and earnings, which gives the full-year outlook additional support.

Greece And Bulgaria Lead, Romania Remains The Pressure Point

Greece, which accounts for roughly 60 per cent of Jumbo’s business, continued to deliver healthy growth. Bulgaria also performed strongly, benefiting from a favourable operating environment shaped by progress toward euro adoption, ample liquidity, a stable banking system, low public debt and robust wage growth.

Romania remained the most challenging market in the portfolio. High inflation, pressure on the leu, fiscal tightening and the increase in VAT from 19 per cent to 21 per cent in August 2025 all weighed on real disposable income and consumer demand.

Jumbo said the Romanian comparison base would become more meaningful from August, when sales will be measured against a period in which the higher VAT rate was already in place. But the company stressed that this was largely a technical effect and did not by itself signal a material recovery in consumption, which remains under pressure from inflation, currency weakness and fiscal measures.

Margins Stay Under Pressure

Gross margin fell by 33 basis points in the first half, reflecting the depreciation of the Romanian currency and Jumbo’s decision to absorb part of the VAT increase rather than fully pass it on to consumers. A more favourable euro-dollar exchange rate, relatively contained freight costs and a lower share of franchise-related sales helped offset some of that pressure.

Still, the outlook for logistics is becoming less predictable. Recent developments in international shipping have pushed freight rates higher again, adding a new layer of uncertainty for the second half of the year.

Strong Liquidity Supports Capital Returns

Jumbo continues to operate without bank debt. As of June 30, cash and cash equivalents exceeded total lease liabilities by €485.65 million, giving the company substantial financial flexibility.

That balance sheet strength is allowing the retailer to pursue shareholder returns and growth investments at the same time. On September 23, the board approved an extraordinary cash distribution of €1 per share, worth approximately €134.37 million. The ex-distribution date is November 16, the record date is November 17, and payment begins on November 20.

Earlier in 2026, Jumbo had already returned €161.2 million, or €1.20 per share, to shareholders. Including the latest payout, total cash distributions for the year amount to €2.20 per share, or about €295.57 million.

Expansion Continues Across Stores, E-Commerce And Logistics

Despite the generous capital returns, Jumbo is pressing ahead with its expansion plan. A new hypermarket in Baia Mare, Romania, is expected to open in October, while further stores are planned in Romania and Cyprus in 2027. Greece is expected to see a quieter opening schedule next year, with the next four stores still in preparation and likely to start opening from 2028. In Bulgaria, the group is targeting one additional hypermarket within the next two years.

Romania remains central to Jumbo’s longer-term strategy, with the company maintaining its goal of doubling the number of stores there over the next decade.

Jumbo is also testing smaller-format pop-up stores designed for tourist and high-traffic locations. Suitable sites have already been identified, and the first openings are expected in 2027 or 2028.

Its digital footprint is expanding as well. The retailer already operates online stores in Greece, Cyprus, Bulgaria and Romania, and plans to launch an online store in Hungary by late 2026, supported by its existing e-commerce infrastructure in Romania.

Supply Chain Investment Remains A Strategic Priority

Logistics development is moving in parallel. Jumbo is progressing with the acquisition of the roughly 60,000-square-metre Giga distribution centre in Romania, which should improve delivery capacity and efficiency in that market. A new distribution centre in Thessaloniki is also under development and is expected to be completed in 2027, serving northern Greece and Bulgaria.

At the same time, the expansion of Jumbo’s partnership with BALFIN Group, together with a new supply model for additional markets covered by the agreement, is expected to free up capacity across the company’s existing warehouses and distribution centres. That, in turn, is prompting Jumbo to revisit plans for a new distribution centre in Oinofyta.

The retailer is also in discussions with Fox Group on extending the same supply model to Israel and Canada.

International Partnerships Broaden Jumbo’s Reach

Beyond its directly operated network, Jumbo currently has 48 JUMBO-branded stores across seven countries through partnerships: Albania, Kosovo, Serbia, North Macedonia, Bosnia and Herzegovina, Montenegro and Israel.

During the first half of 2026, its partnership with BALFIN expanded into six new markets: Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan and Uzbekistan. The agreement builds on existing operations in Albania, Kosovo, Bosnia and Herzegovina, Montenegro and Moldova, where a store is expected to open during 2026.

For the six new markets, BALFIN will establish a central logistics hub in China and manage the supply chain independently.

Jumbo’s partnership with Fox Group is also advancing. Eight JUMBO stores are now operating in Israel, while the first location in Toronto is expected to open toward the end of 2026, subject to no delays.

Cyprus has built a reputation for resilience. Even amid external shocks, the economy continues to post solid growth, maintain low unemployment and preserve a healthy fiscal position. But beneath those headline figures, the Fiscal Council says there are vulnerabilities that could become costly if left unaddressed.

Growth And Fiscal Performance Remain Solid

Presenting the council’s 2026 interim report, chairman Andreas Charalambous said gross domestic product expanded by 3.8% in 2025, with growth projected at 3% this year. In the council’s assessment, that is “very satisfactory under the circumstances.”

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The public finances also remain on a constructive path. Cyprus recorded a budget surplus of 3.4% in 2025, while public debt fell to 55% of GDP, comfortably below the 60% benchmark.

Labour market conditions have likewise remained favourable. Unemployment stood at 4.4% last year and eased further to 3.6% in the first half of this year, reinforcing the picture of a broadly stable economy.

Migration And Foreign Investment Have Supported Expansion

The Fiscal Council said Cyprus has benefited from migration inflows in recent years, as well as from foreign companies establishing operations on the island. That combination has supported job creation, lifted household incomes and consumption, and strengthened the services export sector.

Foreign corporations have played an important role in deepening the economy’s activity base. They bring employment, business spending and a wider flow of services exports, all of which help sustain growth in a small, open economy such as Cyprus.

But the council also warned that this support has limits. Migrants now account for more than 20% of the population, and possibly as much as 30%, while demographic ageing has reduced the share of people of working age.

That means future growth cannot rely simply on more workers or higher employment participation. According to the council, the real constraint is productivity — and Cyprus does not perform well on that front.

Inflation And Energy Dependence Expose New Pressures

On the negative side, inflation rose sharply in 2026, putting the greatest strain on low-income households. Although much of the inflation is imported and tied to geopolitical developments, Charalambous said Cyprus also bears responsibility because of its slow transition to green energy.

“Reliance on conventional forms of energy keeps energy costs high, rendering the economy more susceptible to international crises,” he said.

The country’s dependence on imported fuel is also weighing on the external balance. Despite solid performance in services and tourism, Cyprus remains in current account deficit, with higher oil prices amplifying the pressure.

Public Investment And Project Execution Remain Weak Points

The Fiscal Council also pointed to long-standing weaknesses in public finances that are not always visible in headline economic data but become clearer over time.

One of the most persistent problems is low public investment. Although annual state budgets set ambitious targets, execution remains weak. In the first half of 2026, implementation of government-backed development projects reached only 25%.

That, the council said, reflects limited administrative capacity and ongoing difficulties in designing and delivering large-scale projects. A separate assessment by the University of Cyprus also found that absorption of funds from the Recovery and Resilience Facility remains low.

Social Spending And Major Projects Need Closer Scrutiny

Charalambous also argued that social spending is not sufficiently targeted. “Essentially, Guaranteed Minimum Income is the only social expenditure granted according to strict means-testing,” he said.

The council urged caution on major planned projects, including the electrical interconnection with Greece and Israel and the long-delayed LNG terminal at Vasiliko. Both could require significant public spending, raising the stakes for the state budget.

There are also medium-term risks in the pension system. Charalambous noted that roughly four workers currently support one pensioner, but that ratio could fall to 2:1 in the future, creating a potential sustainability problem for the social insurance fund.

The Central Message: Strength Today, Risk Tomorrow

The report’s central message is straightforward: Cyprus is in a relatively strong position today, with the fiscal and economic room to absorb future shocks. But that cushion will hold only if the country confronts its structural weaknesses in time.

If it does not, the council warned, those weaknesses could gradually turn into fiscal costs and erode the economy’s current positive trajectory.

The world’s best airport lounges have been named by Skytrax, with the Chase Sapphire Lounge at New York’s LaGuardia Airport taking the No. 1 position in the 2026 World Airline Awards.

Based on votes from travellers around the world, the annual ranking draws on passenger satisfaction across key measures including facilities, service quality and staff hospitality. This year’s list highlights how independent airport lounges have evolved from simple waiting areas into premium spaces that can materially shape the traveller experience.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

European Lounges Make Their Presence Felt

In Europe, the top-performing lounge is Plaza Premium at Rome Fiumicino Airport, which ranked second overall. Another Plaza Premium Lounge at London Heathrow Terminal 4 placed fourth, making Plaza Premium the only operator with multiple lounges in the global top five.

Europe had just two lounges in the top 10, underscoring the competitive gap between regional hubs and the most highly rated global premium lounges. Still, the continent maintained a meaningful presence further down the list, with entries from Vienna, Istanbul and Munich.

Where The Top 20 Lounges Are Located

Beyond the top ranks, Vienna Lounge at Vienna International Airport finished 12th, iGA Lounge at Istanbul Airport came 17th, and Airport Lounge World at Munich Airport’s Terminal 1 also secured a place in the global top 20.

The full ranking reflects a market in which major credit card brands, premium lounge specialists and airport hospitality groups are all competing for traveller loyalty. Chase Sapphire, Capital One, American Express and Plaza Premium are among the names repeatedly appearing near the top.

Plaza Premium Extends Its Global Lead

Plaza Premium Group was also named the world’s best independent airport lounge group, marking a tenth consecutive year at No. 1. The company, which has three lounges in the top 20, continues to set the standard for the category.

“Being named world’s best airport lounge group for a tenth consecutive year is an incredible honour,” said Song Hoi See, Founder and CEO of Plaza Premium Group. “When we pioneered the concept of the independent airport lounge 28 years ago, our dream was to change how people experience airport transit.

“This award is far more than a trophy, it reflects the trust our travellers place in us and the dedication our teams bring to their work every single day.”

The World’s 20 Best Independent Airport Lounges 2026

1. Chase Sapphire Lounge – LaGuardia Airport (LGA)

2. Plaza Premium – Rome Fiumicino Airport (FCO)

3. Chase Sapphire Lounge – Hong Kong International Airport (HKG)

4. Plaza Premium – London Heathrow Airport (LHR) T4

5. Capital One – John F. Kennedy International Airport (JFK)

6. American Express Centurion – John F. Kennedy International Airport (JFK)

7. Coral Cosmo Lounge – Suvarnabhumi Airport (BKK)

8. The Pearl – Bahrain International Airport (BAH)

9. Primeclass Lounge – Muscat International Airport (MCT)

10. Plaza Premium – Dubai International (DXB)

11. American Express Centurion – LaGuardia Airport (LGA)

12. Vienna Lounge – Vienna International Airport (VIE)

13. Capital One – Washington Dulles International Airport (IAD)

14. Chase Sapphire Lounge – Philadelphia International Airport (PHL)

15. 080 Lounge – Kempegowda International Airport Bengaluru (BLR) T2

16. Plaza Premium First – Hong Kong International Airport (HKG)

17. iGA Lounge – Istanbul Airport (IST)

18. Airport Lounge World – Munich Airport (MUC) T1

19. American Express Centurion – Haneda Airport (HND)

20. Strata Lounge – Auckland Airport (AKL)

The World’s Best Independent Airport Lounge Groups

1. Plaza Premium Group

2. TAV Primeclass

3. Chase Sapphire Lounges

4. Capital One Lounges

5. Coral Lounge Group

6. American Express Centurion Lounges

7. Aspire Lounges

8. Escape Lounges

9. Araya Lounges

10. CATRION Lounges

Cyprus is stepping up investment in mountain and rural tourism as the government works to draw more visitors inland, support local communities and strengthen the island’s position as a year-round destination, Deputy Tourism Minister Kostas Koumis said on Thursday in Agros.

Authenticity Emerges As A Core Competitive Advantage

Speaking at the conference “Mountain Areas, Special Interest of Tourism and Community Resilience”, held as part of Mountain Games Cyprus 2026, Koumis said authenticity remains one of the sector’s most valuable assets. The character of rural and mountain communities, he argued, is central to their long-term appeal.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The four-day Mountain Games programme, organised during the European Week of Sport, features 35 activities across eight Troodos villages within the UNESCO Global Geopark.

Tourism Strategy Puts Nature And Rural Experiences At The Forefront

Koumis said the government and the Deputy Ministry continue to invest in mountain and rural areas, while recent studies show travellers increasingly want nature, outdoor activity and closer contact with local communities.

Under the National Tourism Strategy 2035, nature and rural tourism — alongside cultural tourism — have been identified as priority special-interest segments, with hiking trails playing a central role. The objective is clear: extend the tourism season, spread visitor traffic further inland and reinforce Cyprus as a destination that can attract demand throughout the year.

Troodos, Koumis said, has “all the ingredients to meet this demand”, citing its walking trails, wine villages, Geopark status and UNESCO-listed monuments.

Upgrading Trails To European Standards

To support that ambition, the Deputy Ministry is working closely with the Forestry Department to promote walking and cycling tourism, improve route signage and upgrade forest recreation infrastructure.

Koumis also highlighted the publication by the Cyprus Organisation for Standardisation (CYS) of the national standard for the design, construction, signposting and management of hiking trails. For the first time in Cyprus, the standard sets national criteria covering trail characteristics, difficulty levels and minimum requirements for design, construction, marking and maintenance.

The aim is to deliver trails that are safe, accessible and well maintained, while enhancing the visitor experience and better reflecting the natural and cultural identity of each area.

Cyprus is also seeking to align its hiking infrastructure more closely with recognised European benchmarks. As a member of the European Hiking Federation, the Deputy Ministry is working to apply the “Leading Quality Trails – Best of Europe” criteria, with the longer-term goal of creating the conditions for the certification of Cyprus’ first long-distance trail.

A two-day training workshop on the scheme will take place in Spilia on September 25 and 26, with support from the Deputy Ministry. The session will focus on day hiking routes and help local authorities, government services and tourism organisations assess and upgrade routes. The next target is certification of three to four day routes within the Troodos Geopark.

Linking Outdoor Tourism With Local Economies

The wider strategy goes beyond infrastructure. The Deputy Ministry also wants outdoor tourism to support village businesses, local products and rural traditions more directly.

Koumis pointed to the Heartland of Legends circular route, where hiking, cycling, climbing and birdwatching are integrated with themes inspired by the island’s traditional rural activities. A similar approach underpins Taste Cyprus and the island’s wine routes, which connect tourism with local production and gastronomy so that more economic value stays within the communities themselves.

The Christmas Villages initiative is another key part of the effort, giving visitors “another reason to choose the mountains in winter” while supporting accommodation, hospitality and other local businesses beyond the peak summer period.

Accessibility Becomes Part Of The Quality Proposition

Accessibility is also being treated as part of the overall tourism product, not simply as a compliance issue. Koumis said the Deputy Ministry does not see accessibility as “a formal obligation”, but as a core element of quality, equality and social responsibility.

Grant schemes have already supported accessibility upgrades, specialist-interest facilities and health and wellness services at tourism accommodation. In addition, the Deputy Ministry has identified more than 300 tourism sites accessible to people with different disabilities.

Cyprus is also reviewing the experience of the Italian Hiking Federation, particularly in relation to trail assessment and certification, the training of accompanying guides and the use of specialist equipment for people with mobility disabilities.

More Than €15 Million Channelled Into Rural Projects

Rural tourism investment has also continued through the Recovery and Resilience Plan. Under the second call of the grant scheme for the revival of rural, mountain, border and remote areas, 152 projects have been completed, supported by €7 million in funding.

In parallel, 46 hotels and tourist accommodation businesses in rural, mountain and remote areas were approved for grants worth €6.9 million, while a further €1.3 million was allocated in 2025 for upgrades to restaurants and shops selling traditional food products.

Taken together, the three funding streams amount to more than €15 million in support for rural projects, accommodation and businesses linked to local food production.

Supporting Communities, Not Just Visitor Numbers

Koumis described support for the countryside as a wider government priority, aimed at keeping mountain communities economically active and encouraging younger people to return.

Tourism also plays an important role in the National Strategy for the Development of Mountain Communities, coordinated by the Commissioner for the Development of Mountain Communities, while agricultural support under the Common Agricultural Policy Strategic Plan 2023-2027 helps sustain the local production that underpins much of Cyprus’ gastronomic tourism offering.

Koumis also referred to conclusions adopted by the EU Competitiveness Council during Cyprus’ EU presidency, which placed greater emphasis on rural, mountain and remote destinations, as well as accessible and inclusive tourism models.

Ultimately, he said, the goal is to develop mountain tourism in a way that “respects the identity of each place” while ensuring tourism delivers meaningful and lasting benefits for the communities that host it.

Cyprus remains one of the European Union’s most sea-dependent economies, with maritime transport continuing to underpin both its trade profile and broader freight activity. In 2024, 98.6% of imports and 97.2% of exports by weight moved by sea, underscoring the island’s structural reliance on shipping.

Maritime Transport Still Drives Cyprus Freight

The dependence on sea transport is equally clear in freight activity. Measured in tonne-kilometres, maritime transport accounted for 96.3% of Cyprus’ freight movement in 2024, the third-highest share in the EU after Portugal and Greece.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

That position reflects more than geography. Cyprus has built a maritime ecosystem that gives shipping outsized economic importance, from port activity to ship management services and fleet operations.

Sea Routes Dominate EU Trade Flows

Across the European Union, maritime transport remained the dominant mode for international trade in goods in 2025, according to fresh Eurostat data.

The bloc imported 1.1 billion tonnes of goods from non-EU countries by sea, worth €1,270 billion, while exports transported by sea totalled 0.5 billion tonnes, valued at €1,069 billion.

By weight, sea transport accounted for 73.3% of all EU imports and 72.6% of exports. In value terms, however, its share fell to 50.2% of imports and 40.4% of exports, reflecting the role of air and road transport in moving higher-value goods.

Air And Road Carry Less Weight, But More Value

Air freight illustrates the contrast most sharply. It represented just 0.3% of imports and 2.9% of exports by weight, yet carried 20.7% of import value and 29.1% of export value.

Road transport showed a similar pattern. It accounted for 6% of imports and 17.4% of exports by weight, but made up 19.5% and 24.9% respectively by value.

Rail remained a smaller contributor to EU trade logistics, representing 2.6% of imports and 2.9% of exports by volume, and 1.2% and 1.3% respectively by value.

A Strategic Maritime Hub In The Eastern Mediterranean

Cyprus’ dependence on maritime transport is closely tied to its island geography, but also to the scale and sophistication of its shipping sector. According to the Shipping Deputy Ministry, Cyprus has the world’s 11th-largest fleet and the third-largest in Europe. It is also the continent’s largest third-party shipmanagement centre.

The Eurostat release was timed to coincide with World Maritime Day on September 24. This year’s theme, “From Policy to Practice: Powering Maritime Excellence,” highlights a broader policy challenge across Europe: turning strategic maritime ambitions into practical economic advantage.

A new public artwork in Protaras is turning a coastal promenade into a place of reflection, memory and national significance.

The sculpture, Cyprus’ journey through the ages, by acclaimed Cypriot artist Philippos Yiapanis, was unveiled on Saturday, September 19, in the Xistaria area of the Lefkolla promenade. The work, which was previously presented in Salamina, Attica, traces Cyprus’s long historical trajectory while underscoring the enduring ties between Cypriot Hellenism and Greece.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Landmark With Historical Weight

Set against the view of occupied Famagusta and ancient Salamis, the sculpture carries a symbolism that extends beyond aesthetics. Its location lends the piece a powerful commemorative dimension, linking remembrance with continuity and hope.

Installed in a prominent public space, the artwork also adds a cultural layer to Protaras, offering residents and visitors a new landmark where art intersects with collective memory and history.

A Donation Rooted In Memory And Identity

The sculpture was donated by the company and family of Chrysostomos and Katerina Papavassiliou and installed with the support of the Municipality of Paralimni-Deryneia. The unveiling took place under the auspices of the Deputy Ministry of Culture.

Chrysostomos Papavassiliou, chairman and chief executive of Limassol-based Island Oil Holdings, said the piece speaks directly to Cyprus’s unresolved division.

He described the sculpture as a deeply symbolic work, noting that Yiapanis had created “half a boat, half an occupied Cyprus,” and calling it “a journey that remains unfinished.”

He added that the artwork is also “a cry of pain for those who were lost forever, those who remain missing, and our uprooted compatriots.”

A Message Aimed At The Future

For Papavassiliou, the donation is not only an act of remembrance but also a statement of intent.

“For us, this donation represents a small contribution to the fight against oblivion,” he said, describing it as “an expression of hope for the reunification of our beloved homeland under conditions of peace, security and respect for our cultural heritage, and through the implementation of the European acquis.”

The company also thanked Yiapanis, Paralimni-Deryneia Mayor Giorgos Nikolettos, and the Municipal Council for their contribution to the cultural life of the area, as well as the Deputy Ministry of Culture and all those involved in organizing and completing the ceremony.