The European Union’s next long-term budget could be reduced by around 10% to 11% compared with the European Commission’s proposal, which approaches €2 trillion, according to Cyprus President Nikos Christodoulides. His estimate points to a potential compromise between the Commission’s spending ambitions and pressure from member states seeking tighter budget controls.

“I believe we may end up with a reduction of around 10% or 11% — in other words, a double-digit cut,” Christodoulides told Politico in an exclusive interview on the sidelines of the summit, during a break in negotiations.

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Member States Push For Deeper Spending Cuts

The negotiations reflect differing views among EU governments over the scale of the bloc’s future spending commitments. Last week, the Irish government proposed an 8% reduction compared with the Commission’s draft, signalling support for a smaller budget while leaving room for further negotiations.

Even a cut of 11%, however, would fall well short of the reductions worth several hundred billion euros sought by the so-called “frugal” member states. These countries have traditionally advocated stricter spending discipline and a more restrained approach to the EU budget.

Balancing Fiscal Discipline With Strategic Priorities

The final size of the budget will determine how the EU balances demands for spending restraint with the need to finance its strategic priorities. The negotiations concern not only the overall level of expenditure but also the resources available to support areas such as defence, security, competitiveness and other shared European objectives.

Christodoulides’s forecast suggests that a double-digit reduction could emerge as a basis for compromise, although the final outcome will depend on negotiations among member states. With the Commission’s proposal approaching €2 trillion, even a relatively modest percentage cut would represent a substantial reduction in the bloc’s planned spending.

The talks are therefore shaping up as a test of political influence among EU governments, as leaders seek to agree on a long-term financial framework that balances national budgetary concerns with the Union’s wider ambitions.

Cyprus recorded its highest-ever number of tourist arrivals for September, with 580,889 visitors in 2026, up 1.8% from 570,635 a year earlier. The rebound comes after months of disruption linked to geopolitical tensions in the Middle East, although arrivals for the first nine months of the year remain below 2025 levels.

According to the Cyprus Statistical Service (Cystat), September arrivals were also 14% higher than in September 2024, when the island welcomed 509,463 tourists. Deputy Tourism Minister Kostas Koumis said the figures demonstrated the sector’s resilience after regional tensions and negative publicity created uncertainty in March.

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Year-To-Date Decline Continues To Narrow

Cyprus welcomed 3.4 million tourists between January and September, down 5.6% from 3.6 million in the same period of 2025. The shortfall has narrowed steadily, from 10.1% at the end of June to 8% in July and 7% in August.

Despite the annual decline, arrivals remained 4.1% above the first nine months of 2024 and 8.3% higher than in 2023, indicating continued growth over the longer term.

Israel And The UK Drive September Arrivals

Israel recorded the strongest growth among Cyprus’s main source markets, with arrivals rising 31.4% year on year to 105,249. The number was 92.9% higher than in September 2024, and Israeli visitors accounted for 18.1% of all arrivals, compared with 14% a year earlier.

The UK remained the island’s largest source market, contributing 184,345 visitors, or 31.7% of the total. British arrivals increased by 2.8% year on year and were 1.9% above their September 2024 level. Together, the UK and Israel accounted for almost half of all visitors during the month.

Greece also supported the rebound, with arrivals rising 16.1% to 19,995. However, several other European markets recorded declines. Poland, Cyprus’s third-largest market in September, fell 7.5% to 41,636 visitors, while Germany was down 11.6% to 30,362. Arrivals from France dropped 48.9% to 4,994.

Tourism Strategy Looks Ahead To 2027

Koumis said the results reflected the government’s efforts to preserve existing travel programmes and strengthen cooperation with strategic partners despite geopolitical uncertainty. Maintaining established visitor flows had been a priority, while tourism planning was adapted to changing conditions.

The Deputy Ministry of Tourism has now begun preparing for 2027, with a focus on sustaining growth and attracting visitors from markets that have experienced declines. The longer-term objective is to improve the quality and sustainability of Cyprus’s tourism offering while ensuring that growth benefits local communities and supports the economy.

Anthropic is establishing a public benefit fund to support initiatives serving the wider public interest, expanding its efforts to address the social and economic consequences of artificial intelligence.

The fund will begin with a commitment equivalent to 5% of the company’s shares and operate as a wholly owned entity within the business. Anthropic says the structure will provide “increased flexibility and scale” in supporting public benefit projects as AI development accelerates.

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Fund Could Expand As Anthropic Grows

The company may contribute an additional 2% for every 50% increase in its value. Funding could support a range of initiatives, from large donations to established non-profit organisations to direct distributions for specific populations.

Anthropic said the fund would allow it to respond more flexibly to emerging challenges, including AI’s potential impact on employment and the wider economy. The company has already committed $200 million to studying these issues through its Economic Futures Research Fund, but believes more ambitious interventions may be necessary.

“Given the pace of AI progress, bolder approaches may be needed,” Anthropic said. “The Fund will have the versatility to pursue them.”

Governance And Public Trust Remain Key Questions

The announcement comes as AI companies face growing public scrutiny over the societal consequences of their technology. Anthropic chief executive Dario Amodei has described the industry’s backlash as “fundamentally a crisis of trust”, highlighting the reputational challenges facing developers alongside the policy debate surrounding AI.

Questions remain over how the new fund will operate in practice, particularly who will decide which initiatives receive funding. Anthropic said it plans to provide further details on the fund’s structure and governance in the coming months.

The announcement is available on Anthropic’s website.

Artificial intelligence is becoming a strategic priority for retailers, with 80% of retail leaders planning to increase investment in the technology, according to EY’s latest CEO Outlook Survey. However, growing concerns over cybersecurity, customer privacy and regulation could complicate adoption across an industry already facing inflation, geopolitical uncertainty and changing consumer expectations.

Confidence In AI Comes With Risks

The survey found that 80% of retail leaders are confident in their ability to expand the responsible use of AI and customer data. Retailers are increasingly applying the technology to demand forecasting, inventory management, customer service and personalised marketing, seeking to improve efficiency and respond more quickly to market changes.

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Yet adoption brings new vulnerabilities. EY found that 24% of retail leaders identified cybersecurity and data privacy as a leading business risk for the year ahead. Retailers manage sensitive customer information, payment systems and complex supply chains, making effective security and governance essential as AI becomes more deeply embedded in their operations.

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlights the wider challenge: 87% of organisations reported rising cyber risks linked to AI vulnerabilities, while 94% expected malicious AI to have a significant impact on cybersecurity in 2026.

Regulation Will Shape AI Adoption

Regulatory frameworks are also influencing how quickly retailers can expand their use of AI. The European Union’s AI Act, China’s state-led governance model and measures introduced by individual US states are shaping the rules around the technology.

For retailers, compliance is becoming a strategic consideration, particularly for customer-facing applications that use personal data to personalise offers, automate interactions or analyse consumer behaviour. Regulatory missteps could carry significant costs in a sector where customer trust is critical.

EY Outlines Four Possible Futures

EY recommends that retailers plan for multiple outcomes rather than assume the current investment boom will continue uninterrupted. Its analysis draws on a four-scenario framework developed by Jim Dator of the University of Hawaii.

One scenario envisages constrained AI adoption as economic pressures, regulation, cyberattacks, legacy systems and poor data quality limit progress. Retailers in this environment may prioritise lower-risk back-office applications, such as finance, procurement, inventory and logistics, while customer-facing tools face resistance.

A second scenario anticipates continued growth, with sustained investment and widespread adoption. A third envisages deeper economic and social transformation as technology reshapes business operations. The fourth considers systemic breakdown, in which a small number of technology platforms control access to AI models and charge premium prices, potentially making advanced capabilities less accessible even to large retailers.

Governance Will Determine Competitive Advantage

EY’s findings suggest that investment alone will not determine which retailers benefit most from AI. Companies will also need robust cybersecurity, effective governance and strategies that can adapt to different economic, technological and regulatory conditions.

For a sector operating on tight margins, the challenge is to turn AI investment into lasting business value while managing the risks that come with greater dependence on the technology.

Cyprus’s annual harmonised inflation rate reached 5.2% in September 2026, driven by higher transport costs, restaurant and accommodation prices, and housing and utility expenses, according to the Statistical Service. Energy remained a major source of pressure, with prices rising 20.2% year on year.

Transport And Hospitality Record Biggest Annual Increases

Compared with September 2025, prices rose most sharply in transport, up 13.3%, followed by restaurants and accommodation services, which increased by 11.2%. Housing, water, electricity, gas and other fuels recorded a 9.5% rise.

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By contrast, clothing and footwear prices fell by 10.4%, while information and communication costs declined by 0.9%.

Monthly Inflation Eases

Despite the annual increase, the Harmonised Index of Consumer Prices fell by 0.4% compared with August. Over the first nine months of 2026, however, the index rose by 3.2% compared with the same period last year.

Housing, water, electricity, gas and other fuels recorded the largest monthly increase, at 3.3%. Educational services rose by 1.5%, while food and non-alcoholic beverages increased by 1.3%.

Prices for restaurants and accommodation services fell by 3.3% month on month, while transport costs declined by 2%.

Energy Remains A Key Pressure Point

Energy prices rose by 5% between August and September, bringing their annual increase to 20.2%. The figures highlight the continued pressure on household budgets and business operating costs despite the monthly decline in the overall inflation index.

Cyprus is calling for greater flexibility for EU member states to introduce national measures to ease high energy costs, while supporting a further postponement of the EU Emissions Trading System 2 (ETS 2). President Nikos Christodoulides outlined the priorities as he arrived for the European Council in Brussels on Thursday, also highlighting EU budget negotiations, Schengen accession, migration and regional security.

Energy Costs And ETS 2 Top The Agenda

Christodoulides said Cyprus had already communicated its position on energy costs and backed several member states calling for a further delay to ETS 2. He expects energy prices and the EU’s long-term budget to dominate discussions, given their impact on European competitiveness, households and businesses.

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His proposed response to the energy crisis has three elements: immediate support for households and companies, structural reforms to reduce the EU’s energy dependence on the Middle East, and measures to strengthen citizens’ disposable income.

He also plans to highlight the Great Sea Interconnector (GSI) as part of the broader need to strengthen energy links between member states. Asked about a memorandum of cooperation between the occupied areas and Turkey, Christodoulides said he would brief fellow leaders on the project’s geopolitical, energy and economic significance, as well as what he described as Turkey’s illegal actions.

EU Budget Talks Face Difficult Compromises

On the EU’s next Multiannual Financial Framework (MFF), Christodoulides welcomed a proposal from the Irish presidency, saying it builds on a plan presented during Cyprus’s own presidency. However, he stressed that funding for defence, security, competitiveness and migration must not come at the expense of the Common Agricultural Policy or Cohesion Policy.

According to the president, the latest proposal would represent a reduction of around 8% compared with the European Commission’s original plan, a level Cyprus does not support. He warned that a final compromise could involve cuts of 10% to 12%.

Christodoulides said the negotiations were fundamentally political and should be concluded by the end of the year. He pointed to upcoming elections and political developments in Sweden, Spain, France, Italy and Poland as factors that could complicate the process. He also expects an extraordinary European Council in November, warning that delays would send a negative signal within and beyond the EU.

Cyprus Hopes For Schengen Decision In December

Christodoulides said all technical work on Cyprus’s accession to the Schengen Area had been completed. He hopes the issue will be discussed at the relevant Council meeting in December, paving the way for a final political decision. The president has already raised the matter with the European Commission president and plans to continue consultations with other EU leaders.

Cyprus Offers To Host European Mission For Lebanon

Cyprus has welcomed plans to establish a European mission for Lebanon and is ready to serve as its operational centre, Christodoulides said. He cited the island’s geographic proximity, established ties with Lebanon and existing training facilities, including the CYCLOPS Centre, established in cooperation with the United States. According to the president, the centre has trained participants from 50 countries in the region.

Migration And Regional Security Remain Priorities

Christodoulides reiterated Cyprus’s support for a European emergency mechanism to address migration, particularly when migration flows are used as a political tool. He said arrivals in Cyprus had fallen by more than 90% and returns had increased by 180% compared with 2022, arguing that the country’s approach could serve as a model for the EU.

On wider geopolitical issues, he expressed concern about the agreement between US President Donald Trump and Russian President Vladimir Putin, saying closer coordination between Washington and the EU should have come first.

Cyprus is also ready to participate in the next EU–Gulf Cooperation Council summit in Saudi Arabia, with Christodoulides stressing the need for concrete outcomes to strengthen ties between Europe and the Gulf. He said regional security was a shared concern, arguing that the security of Cyprus, the EU and Gulf countries was interconnected.

Regarding China, the president said a more unified European position was emerging, and he did not expect particularly difficult discussions. Asked about the possibility of the United Kingdom rejoining the EU, he said Cyprus would welcome such a move if London chose to pursue it.

The International Air Transport Association (IATA) is calling for closer integration of people, technology and global standards to strengthen aviation safety, warning that further progress will depend on how effectively the industry brings these elements together.

Speaking at the opening of the IATA World Safety and Operations Conference, IATA director of safety Mark Searle said fatal accident rates had improved over the past decade, falling from one accident per 3.5 million flights to one per 5.6 million. However, 394 people lost their lives in aviation accidents in 2025, highlighting the need for continued improvement.

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“Every fatality strengthens our resolve to do better,” Searle said. “The next advance in safety will come from people, technology, and standards working together better as one resilient system.”

Three Priorities For A Stronger Safety Culture

IATA has identified three priorities for sustaining safety performance as a new generation of aviation professionals enters the workforce: transferring knowledge, combining experience with new capabilities, and protecting safety culture.

Mentoring, training and succession planning can help preserve operational expertise as experienced professionals retire or move on. At the same time, the industry can benefit from combining veteran specialists’ practical judgment with younger professionals’ digital skills and familiarity with artificial intelligence.

Equally important is maintaining an environment where employees can report hazards, errors and near misses without fear of punishment. Searle said aviation had developed “something genuinely rare, a positive safety culture in which people report their own errors, and mistakes become opportunities for everyone to learn from”. He warned that this culture must be preserved as responsibilities pass between generations.

Technology Must Complement Human Judgment

Artificial intelligence and other new tools can help safety professionals identify risks earlier, understand operating conditions and make better-informed decisions. However, IATA stresses that safety systems must remain reliable even when technology is unavailable or compromised.

This is particularly relevant as the industry faces increasing Global Navigation Satellite System (GNSS) interference, which can disrupt navigation and affect operational reliability. Technology can support early intervention, Searle said, but it must work alongside redundancy, established procedures, training and human judgment.

Consistent Implementation Of Global Standards

IATA pointed to the safety performance of airlines on its IOSA registry as evidence of the value of common standards supported by effective oversight. The association argues that persistent safety challenges often stem not from a lack of rules, but from inconsistent implementation and supervision.

“The next step change in safety will not come from writing more standards,” Searle said. “It will come from making sure the standards we already have are understood, implemented and overseen consistently, everywhere.”

The association is calling for oversight resources to focus on the areas of greatest risk, stronger compliance by states with international obligations on conflict-zone risk information and accident reporting, and updated requirements that reflect technological, operational and regulatory changes.

Building A More Resilient Aviation System

IATA’s position is that aviation safety depends on people, technology and standards reinforcing one another. This applies across a range of challenges, from runway safety and GNSS interference to conflict zones and accident investigations.

“When one of these pillars is weak, the resilience of the entire system is reduced,” Searle said.

Further improvements, the association argues, will depend on consistent implementation, effective use of technology and a strong safety culture that can withstand generational change.

Pandora is expanding its global manufacturing capacity with a new $150 million factory in Ho Chi Minh City, Vietnam, while seeking to reduce the environmental impact of its production. The facility is expected to employ 7,000 people at full capacity and manufacture up to 60 million pieces of jewellery annually, increasing the company’s overall production capacity by 50%.

Vietnam Becomes A Key Manufacturing Hub

The new site is Pandora’s fourth factory worldwide and its first outside Thailand, marking a significant expansion of its manufacturing network. The company sold 112 million pieces of jewellery in 2025, equivalent to more than three per second.

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“This gives us flexibility to craft all our collections, our assortments in all our materials and crafting techniques,” said chief executive Berta de Pablos-Barbier. More information is available on Pandora’s website.

Expanding Production While Reducing Emissions

Pandora invested $150 million, or approximately €132 million, in the Vietnam factory, which is expected to operate entirely on renewable electricity. The company also switched to 100% recycled gold and silver in 2024 as part of its efforts to reduce the environmental footprint of its products.

De Pablos-Barbier said Pandora intends to continue growing “in a sustainable manner”. However, recycled metals still require energy-intensive refining, and the company aims to extend the use of renewable electricity beyond its own facilities to its suppliers.

Gold is particularly suited to circular production because it can be refined and reused without losing its underlying value. Saleem H. Ali, lead researcher for critical minerals and the inclusive energy transition at the United Nations University, highlighted the metal’s durability and potential for reuse, noting that gold from ancient Egyptian artefacts remains in good condition.

Jewellery Demand Grows Amid Economic Pressures

Pandora’s expansion comes as the jewellery market is forecast to grow faster than clothing sales. Unit sales are projected to increase by an average of 4.1% annually between 2025 and 2028, around four times the expected pace for clothing, according to The State of Fashion 2026, a report by McKinsey and The Business of Fashion.

Founded in Copenhagen in 1982, Pandora began manufacturing in Thailand in 1989. Its charm bracelet, launched in 2000, helped drive international growth, followed by the company’s listing on the Copenhagen stock exchange in 2010. Its corporate history is available on Pandora’s website.

Despite the market outlook, the company faces continued pressure on profitability. In its August 2026 results, Pandora warned that US import tariffs would weigh on earnings. The United States is its largest market, while inflation and broader economic uncertainty are also affecting consumer demand.

Labour Practices Remain Under Scrutiny

Pandora has also faced questions over labour practices. In 2020, Danish investigative outlet Danwatch reported that a Thai labour court had ruled in May 2019 that union activity contributed to workers’ dismissals at Pandora’s Bangkok factory. The company said the dismissals resulted from restructuring and employee performance.

As production expands in Vietnam, Pandora will face the challenge of increasing output while meeting its environmental commitments and maintaining labour standards across its manufacturing operations.

Investment in artificial intelligence infrastructure is helping sustain global economic growth at around 3%, with Asia among the main beneficiaries. But the International Monetary Fund (IMF) has warned that the same investment boom could disrupt labour markets, tax systems and education unless governments prepare for the changes ahead.

AI Investment Supports Global Growth

Speaking at the opening of the IMF and World Bank annual meetings in Bangkok, IMF Managing Director Kristalina Georgieva described AI as a powerful source of new demand and investment, helping offset the impact of the global energy supply shock. The technology could add 0.5 to 1 percentage point to growth in advanced Asian economies and 0.2 to 0.8 percentage points in emerging Asian economies.

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“AI, love it, hate it. It’s already here,” Georgieva said. “That shift into higher gear is what is keeping the world economy growing at around 3 per cent, despite the fact we are being dragged down by the energy supply shock.”

The IMF projected in July that global growth would reach 3% in 2026, with an updated forecast due on Tuesday.

Labour Market Disruption Could Be Significant

The IMF’s concern extends beyond economic output. Its research suggests that around 40% of jobs worldwide could be augmented, downgraded or eliminated by AI, rising to as much as 60% in advanced economies.

A shift from labour towards capital could also affect tax revenues, education priorities and governments’ ability to fund public services. In the United States, one IMF study found that 10% of jobs now require AI skills. Routine roles are declining, while lower-paying jobs are growing in sectors such as construction and data centres.

“It is a transformative technology. So it completely changes how we work, how we live,” Georgieva said, describing how an AI assistant now provides her with a 30-second summary of her daily schedule.

Asia Benefits From Its Role In The AI Supply Chain

The United States, China and India remain major players in AI production, while many companies manufacturing the hardware behind the technology are based in Asia. Georgieva highlighted Thailand, host of this year’s meetings, as part of the region’s broader position in the supply chain.

This gives Asia a strategic advantage: the region is not only adopting AI but also producing the hardware needed to support its expansion.

Entry-Level Jobs Face Growing Pressure

Singapore President Tharman Shanmugaratnam warned that AI is already affecting graduates’ access to their first jobs.

“There is a particular problem that we have to address very soon … and that is that, the first rung in employment, your first job upon graduation, is now seeing less demand,” he said.

He also cautioned that AI could widen the gap between advanced and developing economies if governments fail to act.

“AI is going to widen the divergence if we are too passive about it,” he said, calling for policies that use the technology to create good jobs and help workers progress in their careers.

World Bank Focuses On Practical AI Applications

World Bank President Ajay Banga offered a more measured view of the threat to entry-level employment, arguing that the most severe disruption may be concentrated in advanced economies developing large-scale AI models.

“In the emerging markets, we are not into large language models,” he said, describing the bank’s focus on “small AI” tools that require less computing power but can improve productivity for farmers, health clinics and teachers.

For many developing economies, targeted applications may offer a more accessible route to AI adoption than costly frontier models, helping address practical needs while supporting productivity.

The discussions in Bangkok highlighted the growing challenge for policymakers: AI is already influencing economic growth, employment and industrial strategy. The task now is to capture its benefits while preparing workers and public institutions for the disruption ahead.

The European Trade Union Confederation (ETUC), representing 45 million members across 41 European countries, is intensifying its call for menopause to be recognized in EU workplace law. The confederation argues that the absence of meaningful support is costing women wages, promotion opportunities and, ultimately, pension income.

A Workplace Issue The Law Has Yet To Catch Up With

“Women’s work-related health risks remain largely ignored by the law, which remains orientated around male-dominated jobs,” said ETUC Deputy General Secretary Isabelle Schömann. “It’s high time that the law caught up with the reality of the whole workforce today and the risks facing them.”

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The campaign arrives as the European Parliament examines a report urging policymakers to treat menopause as an economic, employment and social issue. The European Commission, however, has so far stopped short of proposing a dedicated EU menopause strategy.

A Widespread Workforce Reality

Menopause typically affects women between the ages of 45 and 55, but its impact often extends well beyond a personal health matter. According to data cited by the ETUC, around 30% of women experience symptoms serious enough to affect their ability to work, including fatigue, sleep disruption, hot flushes, joint pain, anxiety and difficulty concentrating. Nearly 85% of women experience at least one symptom.

Research referenced by the confederation also points to measurable financial consequences. In Norway, women’s earnings fell by 7.4% by the fourth year after a menopause diagnosis, driven by reduced working hours, sick leave and missed promotions.

“Loss of pay, lost promotions, and lower pensions is the price being paid by millions of women for the failure to adapt work to the menopause,” Schömann said.

Pressure Builds For EU Action

The issue is gaining traction in the EU’s broader gender equality agenda, even if concrete workplace protections remain largely in the hands of national governments and employers.

In November 2025, Equality Commissioner Hadja Lahbib said the Commission was not planning a standalone EU menopause strategy, while pointing to research projects under Horizon 2020 and Horizon Europe that examine its medical and social dimensions. The Commission has since included menopause in its Gender Equality Strategy 2026-2030, published in March, which commits to sharing national best practices on menstrual and menopause poverty and to a 2028 study on the economic and societal value of closing the women’s health gap, including menopause.

Those commitments signal movement, but they still fall short of legislation establishing specific workplace rights for menopausal employees.

The European Parliament is now seeking to push the debate further. Spanish Socialist MEP Lina Gálvez is leading a draft report titled Menopause beyond a health issue: turning menopause into an economic, working and social priority. The report, which will not be discussed in plenary until next year, calls for a dedicated EU strategy, broader research, public campaigns to reduce stigma, better workplace support and improved access to healthcare.

“It is therefore essential to have an EU strategy that includes broader and more inclusive EU research, evidence-based public campaigns to change the social perceptions, improved workplace support and improved access to healthcare,” Gálvez wrote. “It is time for the EU to tackle menopause.”

The draft remains a parliamentary initiative rather than adopted EU policy.

What Unions Want Employers To Do

For the ETUC, the central issue is how workplaces are organized and regulated. The confederation is calling for risk assessments that take into account temperature, ventilation and facilities; flexible hours and remote working; training for managers and human resources staff; and physical adjustments such as temperature controls and ergonomic equipment.

It also wants menopause policies negotiated with trade unions, then implemented and monitored, alongside free menstrual and menopause products at work.

“The way work is organised can make a crucial difference in deciding the impact of the menopause,” Schömann said, noting that unions are already negotiating collective agreements covering workplace adjustments and flexible arrangements.