Cyprus is introducing a new performance-based funding model for publicly financed research organizations, linking state support to measurable results for the first time.

A New Framework For Research Funding

Approved by the Cabinet on Wednesday, the new mechanism establishes a more structured framework for funding public research organizations. Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianos said the system is expected to take effect in early 2027.

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First Phase Targets Centres Of Excellence

The first phase will cover Centres of Excellence co-financed through the Horizon Europe Teaming for Excellence programme with national and European funding.

According to Damianos, the objective is to preserve and further develop the research infrastructure, expertise and capabilities built in recent years, while supporting their transition into sustainable, long-term institutions under a formal funding framework.

Funding Tied To Performance Indicators

Under the new model, funding will be linked to performance against predefined indicators and targets. Organizations will be assessed across 18 indicators grouped into six areas: the research environment, internationalisation, scientific excellence, research performance, knowledge transfer and socio-economic impact.

Performance will be evaluated annually, while funding allocations will be reviewed every three years. The framework also introduces fiscal safeguards, including funding caps, assessments of each organisation’s actual financial needs and consideration of any other institutional state funding already received.

Positioning Research As A Strategic Public Investment

Damianos said the reform lays the groundwork for a new model of institutional support for research and innovation, aimed at strengthening scientific excellence and competitiveness while ensuring the transparent and efficient use of public funds.

He added that the framework is intended to support long-term benefits for both the Cypriot economy and society.

Cyprus is rolling out a new €1 million subsidy program to help households install or replace solar water heating systems, as the government seeks to lower energy costs and expand the use of renewable energy.

Grant Support Of Up To €900

Approved by the Council of Ministers on Wednesday, the Grant Scheme for Solar Hot Water Systems in Homes 2026 will provide subsidies ranging from €500 to €900, depending on the applicant’s category and the property’s location.

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Energy, Commerce and Industry Minister Michalis Damianou said the scheme aims to encourage households to install or upgrade solar water heating systems, helping reduce energy bills while making greater use of Cyprus’ abundant solar resources.

Targeting Lower Costs And Higher Efficiency

The program will be administered by the Renewable Energy Sources and Energy Conservation Fund and will cover complete solar water heating systems that meet the required technical specifications.

To qualify, installations must be carried out by contractors included in the official registry, while all equipment must appear on the list of approved products. According to the Ministry of Energy, these requirements are intended to ensure the scheme is implemented correctly and to minimise the risk of rejected applications.

Who Qualifies For The Highest Support

The standard subsidy is set at €500. Households in mountain areas will be eligible for grants of up to €900, while vulnerable households will also qualify for the maximum level of support.

Applications Open Until December 2026

Applications will remain open until December 20, 2026, or until 2,000 applications have been submitted, whichever comes first. Damianou encouraged eligible households to review the scheme’s conditions and apply while funding remains available.

Cyprus is stepping up efforts to strengthen artificial intelligence governance, cybersecurity and digital resilience as senior officials seek to align policy, regulation and technical expertise better.

Strategic Cooperation Takes Shape

Communications Commissioner Marios Pieris and Chief Scientist for Research, Innovation and Technology Demetris Skourides met to discuss a strategic cooperation framework aimed at supporting the secure, responsible and innovative adoption of artificial intelligence across the public sector, the economy and society.

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The discussions reflected the growing role of AI in shaping regulation, competitiveness, digital security and public trust, as governments across Europe prepare for wider deployment of the technology.

Preparing For The EU AI Act

A key focus of the meeting was the implementation of the European Union’s AI Act and the possible development of an AI Act Implementation Playbook for Cyprus. Such a framework would help public institutions and businesses translate the regulation into practical implementation.

The officials also discussed holding joint technical meetings and roundtables with ISO/IEC experts to bring internationally recognised standards and global AI governance expertise into Cyprus’ preparations.

Building Future-Ready Digital Defences

The meeting also addressed the broader challenge of strengthening Cyprus’ resilience against emerging risks associated with artificial intelligence and cybersecurity. Beyond regulatory compliance, the discussions focused on ensuring institutions, businesses and citizens can adapt to rapidly evolving technologies.

Pieris described AI and cybersecurity as closely connected pillars of Cyprus’ digital transformation, noting that stronger governance and security will become increasingly important as AI adoption expands.

He added that close cooperation among all relevant stakeholders will be essential to building a secure, resilient and trusted digital ecosystem.

Connecting Research, Government And Industry

Skourides highlighted the importance of closer collaboration among research, government, industry, and the innovation ecosystem, saying that stronger links would help Cyprus unlock AI’s potential while boosting competitiveness, productivity, and sustainable growth.

He also stressed that technological progress should remain aligned with European values, transparency and internationally recognised governance standards.

From Policy Discussion To Practical Action

Following the meeting, Pieris introduced the Office’s AI team to the Chief Scientist, extending discussions beyond policy towards future implementation and cooperation on AI, cybersecurity and digital governance initiatives.

Both sides agreed to continue holding regular working meetings with the shared goal of advancing innovation, strengthening digital resilience and supporting the safe and trustworthy deployment of AI in Cyprus.

Cyprus is accelerating its shift towards digital payments, outpacing the broader euro area in card usage and instant payments as consumers and businesses increasingly move away from cash.

Non-Cash Payments Continue To Expand Across The Euro Area

Non-cash payments across the euro area continued to grow in the second half of 2025, rising 6.9% year on year to 83.5 billion transactions, according to the European Central Bank (ECB). Their total value reached €117.8 trillion, up 0.8% from the same period in 2024.

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Cards remained the dominant payment method, accounting for 57% of all non-cash transactions. Credit transfers represented 21%, followed by direct debits at 14% and electronic money payments at 6%. Cheques, money remittances and other payment services accounted for the remainder.

Cyprus Posts Stronger Growth Than The Bloc Average

Cyprus’ payments market expanded at a faster pace than the broader euro area, according to separate data from the Central Bank of Cyprus (CBC). The island recorded 174 million non-cash transactions in the second half of 2025, up 8% year on year, while their total value increased 9% to €148 billion.

“Cypriots continue to shift towards digital payment methods, with non-cash payment transactions increasing in both volume and value during the second half of 2025,” the CBC said.

Describing the payments market as “the engine of the economy”, the central bank said it is shaped by a broad range of payment instruments used by consumers and businesses. The analysis draws on data from all Cyprus-resident payment service providers, including credit institutions, payment institutions and electronic money institutions.

Cards Dominate Daily Spending

Across the euro area, card payments rose to 47.8 billion transactions, up 7.9% year on year, with a total value of €1.8 trillion, an increase of 6.9%. The average card payment remained close to €39.

Online purchases accounted for 19% of card transactions by number and 30% by value. Payments made at physical points of sale represented the remaining 81% of transactions and 70% of value.

Contactless payments also continued to gain momentum. Their number increased 11.9% to 32.9 billion, while their value rose 12.8% to €0.9 trillion. Contactless transactions accounted for 85% of in-person card payments by volume and 70% by value.

In Cyprus, cards accounted for roughly 75% of all non-cash transactions, the highest share in the euro area. The CBC attributed this to the convenience and speed of card payments, the rapid adoption of contactless technology, continued growth in e-commerce and broader merchant acceptance of electronic payments.

Online card payments in Cyprus also stood out for their relatively high average transaction values. According to the CBC, these were significantly higher than payments made at physical points of sale and ranked among the highest in the euro area, highlighting the growing importance of e-commerce in household spending.

Credit Transfers Carry The Bulk Of Value

While cards accounted for the largest share of transactions, credit transfers remained the dominant payment method by value. Across the euro area, they reached 17.8 billion transactions, up 7.1% year on year, with a total value of €108.9 trillion, an increase of 0.6%.

Their higher average value meant credit transfers accounted for 92% of the total value of all non-cash payments. Electronically initiated transfers outnumbered paper-based transfers by around 19 to one, while by value the ratio stood at 15 to one.

In Cyprus, credit transfers represented 16% of total payment volumes but 84% of the total value of non-cash payments, with an average transaction size of €4,500. This reflects their continued use for higher-value business transactions.

The CBC said credit transfers and direct debits grew faster in Cyprus than across the euro area, pointing to wider adoption by households and businesses. Growth in card payments and electronic money payments broadly matched the regional trend.

Instant Payments Gain Momentum

Electronic money payments also continued to expand across the euro area. The ECB recorded 5.1 billion transactions, up 10.7% year on year, with their combined value rising 11.7% to €0.3 trillion. Almost all electronic money payments were executed through electronic money accounts rather than stored-value cards.

The CBC also highlighted the rapid adoption of SEPA Instant Credit Transfers. In Cyprus, instant payments increased from less than 1% of all SEPA credit transfers three years ago to almost 32% by volume, while accounting for around 9% of the total value of SEPA credit transfers.

“Growth was more pronounced in Cyprus, enabling it to not only close the gap with, but also surpass the euro area average following the implementation of the Instant Payments Regulation,” the CBC said.

Cheque Use Declines But Remains Relevant In Business Transactions

Cheque usage continued to decline across the euro area, but remained more significant in Cyprus. Cheques accounted for 6% of the total value of non-cash payments on the island, with an average transaction value of €4,000. By comparison, they represented less than 1% of total payment value across the euro area, with an average value of €1,200.

According to the CBC, cheques continue to be used for business-to-business and property-related transactions, reflecting long-standing commercial practices.

Infrastructure Expands Alongside Usage

Payment infrastructure also continued to expand across the euro area. By the end of 2025, there were 872.7 million payment cards in circulation, equivalent to 2.5 cards per resident. The number of point-of-sale terminals increased 24.6% to 25.7 million, with 93% capable of accepting contactless payments.

The number of ATMs declined 1.3% to around 248,900, although 38% supported contactless transactions. In Cyprus, more than 73% of domestic ATMs enabled contactless withdrawals, placing the country well above the euro area average.

Across the euro area, 36 retail payment systems processed 60.1 billion transactions worth €27.9 trillion during the second half of 2025. Instant credit transfers accounted for 25% of all credit transfer transactions by volume but only 8% by value. The three largest retail payment systems — MCMS, STEP2-T and France’s CORE — handled 67% of transaction volumes and 63% of total value.

Meanwhile, large-value payment systems settled 75.1 million payments worth €213.8 trillion, with T2 and EURO1 remaining the two principal systems.

The Next Phase Will Test Security And Inclusion

Looking ahead, the CBC said the payments sector will continue to evolve through technological innovation, including the proposed digital euro, which the Eurosystem aims to introduce by 2029, subject to legislation expected in 2026. The European Payments Initiative and its Wero digital wallet are also expected to play an important role in strengthening Europe’s payment infrastructure.

The transition to digital payments, however, also presents new challenges. The CBC warned that older people and residents of remote areas may face barriers to accessing digital services, while payment fraud remains a growing concern.

“Ensuring that innovation is accompanied by security, financial inclusion and consumer trust will remain essential for the sustainable development of the payments ecosystem,” the CBC said.

Cyprus’ transport system remains heavily dependent on roads, even as the country continues to outperform the European average on road safety, according to a new European Commission report on transport and tourism trends across the European Union.

Titled Transport and Tourism in the European Union – Current Trends and Issues, the report assesses the bloc’s transport performance through the lenses of sustainability, resilience, connectivity, safety, security and the social dimension of mobility. It also includes country factsheets comparing member states against EU averages across a broad range of indicators.

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Roads Dominate Passenger And Freight Movement

Passenger cars accounted for 83.5% of inland passenger transport in Cyprus in 2023, slightly above the EU average of 82.0%. Buses and coaches made up the remaining 16.5%, more than double the EU average of 8.2%.

Road dependence is even more pronounced in freight transport. According to the report, road transport accounted for 100% of inland freight movement in Cyprus in 2023, making Cyprus and Malta the only EU member states entirely reliant on roads for domestic cargo transport.

As Cyprus has no railway network, the report’s rail market competition indicators do not apply to the country.

Emissions And Congestion Remain Structural Challenges

Transport also remains a major contributor to Cyprus’ greenhouse gas emissions. In 2023, emissions from the sector, including international maritime and aviation fuels, totalled 3.9 million tonnes of carbon dioxide equivalent, representing 37.9% of the country’s total emissions.

Across the EU, transport accounted for 31% of total greenhouse gas emissions, equivalent to 1,039.3 million tonnes of carbon dioxide equivalent.

Congestion remains another pressure point. The average peak-hour delay per driver in Cyprus reached 40.2 hours in 2023, well above the EU average of 28.6 hours. For businesses, those delays translate into lost productivity, slower logistics and higher operating costs.

Road Safety Stands Out Positively

Despite its heavy reliance on road transport, Cyprus recorded a strong road safety performance. The report ranked the country eighth among the EU’s 27 member states for the lowest number of road deaths per million inhabitants, with 36 fatalities per million people in 2023.

Cyprus also ranked 14th for the lowest number of road deaths per distance travelled, recording 46 fatalities per 10 billion passenger kilometres.

The figures highlight a notable contrast between the country’s reliance on road transport and its comparatively low fatality rates.

Electric Mobility Infrastructure Continues To Expand

Cyprus comfortably exceeded the minimum charging power target required under the Alternative Fuels Infrastructure Regulation. The country’s target stood at 608 kilowatts, while available charging capacity had reached 15,472 kilowatts.

The findings suggest there is scope for further growth in electric vehicle adoption. At the same time, the report indicates that expanding charging infrastructure alone will not address the island’s wider transport challenges. Congestion, dependence on road transport and emissions remain structural issues requiring sustained policy action.

Airports And Ports Continue To Anchor Connectivity

Larnaca Airport remained Cyprus’ busiest airport in 2024, handling 8.876 million passengers. Overall, the country’s airports served 12.514 million passengers, equal to 0.8% of total passenger traffic across the EU.

Larnaca also handled 30.6 thousand tonnes of air freight, accounting for virtually all of Cyprus’ total air cargo volume of 30.7 thousand tonnes.

Maritime traffic was similarly concentrated. Limassol Port was Cyprus’ busiest passenger port in 2024, handling 9,000 passengers and accounting for all recorded passenger port traffic on the island.

For freight, Zygi Port handled 4.212 million tonnes of cargo, representing 47% of Cyprus’ total maritime freight volume of 8.945 million tonnes.

Transport Remains A Core European Growth Engine

Beyond the Cyprus-specific findings, the report highlights transport’s strategic importance to the European economy. The EU transport sector includes around 1.4 million public and private companies and employs approximately 10.4 million people.

Transport and storage services, including postal and courier activities, accounted for more than 5% of total EU employment and around 5% of gross value added in 2023.

According to the report, the volume of goods transported across the EU increased by 43% between 1995 and 2023, while passenger transport rose by 32% over the same period. Passenger transport was hit particularly hard by the Covid-19 pandemic, falling 27% between 2019 and 2020, while freight volumes proved far more resilient.

Trade, Geopolitics And Tourism Reshape Policy Priorities

The report highlights maritime transport’s dominant role in external trade. In 2025, 74.8% of imports and exports by volume moved by sea, accounting for 45.7% of total trade value. Road transport represented 9.5% of trade volume and 22.3% of value, while air transport carried just 1.1% of volume but accounted for 22.9% of total trade value, reflecting the high-value nature of goods shipped by air.

The report also examines the impact of Russia’s invasion of Ukraine. EU Solidarity Lanes, launched in May 2022 after Russia blocked Ukrainian seaports, have enabled Ukraine to export around 214 million tonnes of goods, including nearly 91 million tonnes of grain, oilseeds and related products, while facilitating imports of around 100 million tonnes. The total value of trade handled through the initiative is estimated at about €270 billion.

According to the Commission, road transport agreements with Ukraine and Moldova have strengthened the initiative, while EU sanctions targeting air, maritime, road and rail transport have reduced Russia’s access to goods with military applications and weakened its economic base.

The report also devotes significant attention to tourism, describing it as one of the EU’s most important economic sectors and a key driver of growth, employment and regional development. The bloc recorded more than 3 billion overnight stays in tourist accommodation in 2025, the highest level on record.

The Commission is also preparing an EU Strategy for Sustainable Tourism aimed at promoting a more competitive, sustainable and inclusive sector while strengthening resilience to future crises and supporting local communities.

More broadly, the report argues that climate change, technological progress, demographic shifts and geopolitical disruption will continue to reshape transport. It concludes that the challenge for policymakers will be to keep the sector accessible, efficient and connected while making it more sustainable, innovative and resilient.

The Paphos regional tourism board, Etap Paphos, said on Tuesday that its “Paphos – Unleash Your Senses” campaign has secured two industry awards, underscoring the region’s long-term effort to strengthen its position as an international tourism destination.

Recognition For Strategy, Not Just Promotion

The campaign won gold at the Cyprus Tourism Awards 2025 in the Strategy & Innovation – Timeless Presence category and bronze at the Marketing Achievements Awards 2025 in Integrated Marketing.

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Etap Paphos said the honours reflect more than a successful promotional initiative. They also validate a broader collaborative model developed over the past seven years to support the region’s tourism growth.

A Public-private Model Built Over Seven Years

The strategy was designed around a shared long-term vision, bringing together public institutions and private-sector partners under a single destination marketing framework.

According to the board, it was the first organised effort in Cyprus to successfully align public authorities and private businesses behind one unified tourism strategy. That model, it said, has since become a reference point for how coordinated action can improve a destination’s competitiveness in international markets.

Partnership At The Core Of The Campaign

The success of the campaign was credited to the contributions of a broad network of partners and stakeholders, including the Paphos Regional Board of Tourism, the Cyprus Hotel Association’s Paphos district branch, Hermes Airports, Eurobank, participating hotels and other supporting organisations.

Special recognition was also given to AZTECH, the agency responsible for the campaign’s strategic planning and execution. The board said the agency’s expertise has been central to expanding and reinforcing Paphos’s international presence.

Why The Awards Matter

“These distinctions carry deep significance as they celebrate more than just a successful advertising campaign,” the tourism board said. It added that the awards highlight the value of sustained cooperation and shared objectives over short-term promotional activity.

The recognition comes as Paphos continues working to position itself as a year-round, modern, sustainable and smart tourism destination.

“Elevating the profile of Paphos as a year-round highly modern, sustainable and smart travel destination remains an ongoing effort that relies entirely on the continued commitment and contribution of all partners,” the board said.

Monday.com, the Israeli workplace software company, is laying off about 630 employees, or roughly 20% of its workforce, as it restructures the business to support a leaner operating model and accelerate investment in artificial intelligence.

Restructuring Around AI

In a regulatory filing, the company said the workforce reduction is intended to better align resources with its AI strategy, which has become a central focus of its product development.

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Earlier this year, Monday.com expanded its AI offering by introducing the Monday.com AI Work Platform, designed to integrate AI agents into day-to-day business workflows.

The platform includes a no-code app builder, a customizable AI agent, workflow automation tools and a chatbot capable of generating reports, updating dashboards and assisting with routine tasks.

Part Of A Wider Industry Trend

Monday.com’s restructuring reflects a broader shift across the technology sector, where companies are reducing costs while increasing investment in AI development and infrastructure.

According to Layoffs.fyi, tech layoffs rose sharply in May, with 78% of companies citing AI-related restructuring as a factor behind job cuts this year. More than 122,000 technology roles have been eliminated worldwide in 2026, according to the tracker.

Restructuring Costs

Monday.com expects to record restructuring charges of between $45 million and $55 million as a result of the layoffs. The move highlights how software companies are reallocating resources to support AI-focused products and services as competition in the sector intensifies.

The Ministry of Agriculture is introducing a National Quality Certification System designed to strengthen the quality, authenticity and competitiveness of Cypriot agricultural and livestock products.

The initiative, presented by Agriculture, Rural Development and Environment Minister Dr Maria Panayiotou at a Department of Agriculture event in Nicosia, will introduce a unified certification framework aimed at increasing transparency, consumer confidence and the market value of locally produced goods.

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National Quality Mark With QR Code

Certified products will carry a National Quality Mark featuring a QR code and a rating of up to three stars.

By scanning the QR code, consumers will be able to access information about a product’s origin, certification status, supply chain and quality characteristics. The three-star rating will also reflect criteria such as food safety, environmental performance and overall product quality.

The ministry said the framework is intended to create a transparent certification system that helps distinguish Cypriot products in both domestic and international markets.

Focus On Quality Over Volume

Dr Panayiotou said the initiative responds to growing consumer demand for greater transparency while recognising that Cyprus must compete on quality rather than production volume.

“The new National Quality Mark is the identity of Cypriot products; it is proof that behind every product stands a producer who invests responsibly in quality, food safety, environmental protection and continuous improvement,” she said.

Financial Incentives For Producers

The ministry plans to provide annual financial support to farms and processing units to help cover certification costs, as well as administrative expenses, record-keeping and documentation.

Participation in the certification system will also be considered in ministry investment schemes, giving certified producers additional points when applying for funding for modernisation and upgrading projects.

The ministry said the certification mark is expected to strengthen the market position of Cypriot products by helping producers differentiate their goods while giving consumers greater confidence in product quality.

Supporting Exports And Competitiveness

According to Dr Panayiotou, the National Quality Mark is also intended to strengthen Cyprus’ international reputation by promoting the quality, authenticity and reliability of its agricultural products and supporting export growth.

The initiative forms part of the government’s Strategy for the Development of the Primary Sector, which aims to improve the competitiveness and resilience of the agricultural sector.

Department of Agriculture Director Maki Antoniadis said the certification framework will be based on objective criteria, transparent procedures and independent certification. The technical framework was presented by Department of Agriculture official Dr Anthemi Melifronidou Pantelidou, who outlined the certification process and the role of accredited conformity assessment bodies.

Dr Panayiotou called on producer and professional organisations to support the initiative and encourage wider participation in the new certification system.

The Cyprus Chamber of Commerce and Industry (Keve) has signed a memorandum of cooperation with the Elpida Charitable Foundation for Children with Cancer and Leukaemia to strengthen support for children with cancer and their families through joint healthcare, education and humanitarian initiatives.

Partnership To Support Children And Families

The agreement establishes a framework for cooperation on public awareness campaigns, education, humanitarian assistance, medical and psychosocial support, palliative care and prevention. It also aims to promote equal access to healthcare while supporting children with cancer and leukaemia, their families, survivors of serious illnesses and other vulnerable groups.

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Keve Highlights Business Community’s Role

“Social contribution is an integral part of Keve’s mission,” said Keve president Stavros Stavrou.

“Through this partnership with the Elpida Foundation, we seek to strengthen initiatives that support children and their families while raising awareness within the business community about health and social solidarity,” he said.

Stavrou added that cooperation between the public, private and social sectors can create greater value for society by combining resources and expertise.

Focus On Prevention And Equal Access To Care

Elpida Foundation president Loizos Loizou described the memorandum as the start of an important long-term partnership.

“We are joining forces to promote prevention, early diagnosis, equal access to high-quality healthcare services and psychosocial support, to offer greater hope and better prospects to those who need them most,” he said.

Keve said the agreement marks the beginning of closer cooperation between the two organisations, with a shared focus on strengthening healthcare, social solidarity and support for children with cancer and their families.

Environmental tax revenue across the European Union rose 6.1% in 2024 to €371.9 billion, according to Eurostat. Cyprus collected €718.72 million over the same period, highlighting the continued role of environmental levies in national tax systems despite their declining share of the broader economy.

Cyprus Figures Reflect A Broad Revenue Base

In Cyprus, households generated €355.46 million in environmental tax revenue in 2024, while non-residents contributed €35.08 million. The total of €718.72 million also includes receipts from all economic activities and unallocated categories.

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Energy Taxes Remain The Core Of Environmental Revenue

Across the EU, environmental tax revenue increased from €350.4 billion in 2023 to €371.9 billion in 2024.

Energy taxes remained the largest source, generating €287.0 billion, up from €269.3 billion a year earlier. Transport taxes ranked second, rising to €67.0 billion from €64.0 billion, while taxes on pollution and natural resource use contributed €17.9 billion, compared with €17.2 billion in 2023.

The Long-Term Share Is Shrinking

Despite the increase in revenue, environmental taxes accounted for a smaller share of the EU economy than a decade ago, representing 2.1% of GDP in 2024, down from 2.5% in 2014.

Their share of total government revenue from taxes and social contributions also declined over the same period, falling from 6.1% to 5.1%, indicating that environmental tax receipts have not kept pace with the broader expansion of government revenues.

Revenue Rose In Most Member States

Environmental tax revenue increased in 22 EU member states in 2024. Romania recorded the strongest annual growth at 21.7%, followed by Lithuania at 13.9%, Poland at 12.7% and Hungary at 12.2%.

Five countries reported declines. Sweden recorded the steepest fall at 17.7%, followed by Slovakia (6.1%), Finland (3.8%), Greece (3.7%) and Bulgaria (2.3%).