The grants were awarded to Dr. Myrofora Panayi and Dr. Maria Kalli, according to the Research and Innovation Foundation (RIF), adding two new European Research Council (ERC) grants to Cyprus’ research record.

Beyond the individual awards, the results show how national support can help researchers compete for highly selective European funding.

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A Signal Of Research Quality And International Credibility

In a statement, the RIF said the achievement confirms “the quality and international competitiveness of Cyprus’ research ecosystem” and highlights “the value of targeted investment in talent and research excellence.”

The foundation said the result reflects both the strength of the individual researchers and Cyprus’ growing capacity to develop proposals that can secure support from one of Europe’s leading research funding bodies.

How National Support Helped Unlock European Funding

Both successful proposals received assistance from the RIF through research funding under its VISION ERC Programme, along with proposal review services aimed at strengthening applications for ERC calls.

The programme supports early-career and experienced researchers seeking to compete for ERC funding. It is co-funded by the Republic of Cyprus and the European Regional Development Fund (ERDF) through the THALIA 2021-2027 Programme.

A Small Investment With Measurable Returns

According to the RIF, the latest awards demonstrate the potential leverage of targeted public investment in research. A national investment of €100,000 helped secure €1.5 million in ERC funding for each researcher, equivalent to 15 times the original support.

For policymakers and research institutions, the figures show how targeted national funding can help researchers access larger international grants while supporting longer-term research capacity.

Boost For Cancer Research And Cyprus’ Research Profile

The new grants add to Cyprus’ record of securing competitive European research funding and will support advanced cancer research.

More broadly, the awards provide another example of how targeted support for researchers can help strengthen Cyprus’ position in the international research community while bringing additional European funding into the country.

On Sept. 19, Cyprus’ youngest robot builders will arrive at European University Cyprus knowing what their machines are supposed to do. Just before the national competition begins, organizers will change the rules without warning.

The World Robot Olympiad’s surprise rule is designed to test how quickly teams can adapt. The field is also rearranged for each round, so robots cannot simply memorize the course and must make decisions while moving.

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Organized by the Cyprus Computer Society under the auspices of the Ministry of Education, Sport and Youth, the competition is open to pupils aged 8 to 19. Its official theme is “Robots Meet Culture,” with a broader lesson: the world rarely follows instructions.

A Deep Talent Pipeline Is Already Emerging

Cyprus has a growing pool of young robotics talent. In June, Robotex Cyprus brought 709 competitors across 216 teams to the University of Cyprus Sports Centre for maze, sumo and athletic competitions.

The challenges become more demanding as robots move into real-world settings. At last month’s World Humanoid Robot Games in Beijing, 2,056 robots competed in races, football, dancing, combat and tasks based on factory, restaurant and emergency-service work.

Tiangong Ultra ran 100 meters in 8.64 seconds, compared with Usain Bolt’s 9.58-second world record. Robots also hit barriers, collapsed and required staff assistance, while one caught fire after a race.

Why Robotic Failure Can Be Good News

Robot failures can be entertaining partly because humanoid machines invite people to compare their movements with human behavior. Research has also examined whether harmless mistakes can make robots more likeable.

A Frontiers study found that people liked a small humanoid robot more when it made harmless mistakes. Trust can work differently: research published this summer found that Pepper, a conversational robot, lost more than half its influence over people’s decisions after making errors.

According to Drexel University, people judged Pepper more harshly when it used eye contact and gestures. That distinction between an amusing failure and a costly one is increasingly relevant to robotics development in Cyprus.

From Playful Competition To Industrial Use Cases

At AUB Mediterraneo in Paphos, the Intelligent Robotics and Interaction Lab is developing a robotic arm for warehouses. The €100,000 project, financed through the Research and Innovation Foundation, uses an augmented-reality interface that lets people intervene when handling becomes difficult and runs until 2027.

The lab is also testing aerial and ground robots for construction inspections, including a Unitree Go2 robot dog.

In Nicosia, the KIOS Research and Innovation Center of Excellence at the University of Cyprus uses drones, sensors and robotics for emergency response. Researchers map burned or flooded areas, identify objects, inspect power lines and coordinate drone groups, including in conditions with smoke, weak communications or unreliable satellite signals.

KIOS is also part of a European project combining aerial and underwater vehicles for maritime operations. At Cyens, researchers are testing machines that acquire and reuse skills using robot dogs, mobile platforms and mechanical arms.

When Robots Leave Dry Land

In Larnaca, the Cyprus Marine and Maritime Institute develops robotic systems for search and rescue, inspection, aquaculture and ocean research.

A Franco-Cypriot project demonstrated a swarm of underwater vehicles at Ayia Napa Marina last year. Designed to recharge at docking stations inside artificial reefs, the vehicles were intended to photograph the seabed and monitor marine life. The public project page has not confirmed that the full system is operating in 2026.

At Nicosia General Hospital, another robot has been serving coffee since July, grinding beans, preparing drinks and accepting card payments. During a first-hand test, it completed the order, although slowly.

The Real Test Begins After The Applause

Robots can be forgiven for missing a turn in a school competition, but expectations change when they inspect buildings, support emergency teams or operate underwater.

On Sept. 19, Cyprus’ young builders will test their machines under changing rules and conditions. The more important lesson will come afterward, when they identify what failed, adjust the machines and try again.

Oura is moving ahead with plans to go public as competition in the smart ring market intensifies. On Sept. 3, the company formally filed to go public, following a period of rapid growth and new competition from startups and major technology companies.

The Finnish company has built a leading position in a category it helped define. Revenue nearly doubled to $1.21 billion for the nine months ended June 30, while Oura said it sold 3.6 million rings over the past year and now has roughly 5 million paid members. Its IPO filing follows the recent launch of the Oura Ring 5, the company’s slimmest and lightest model to date.

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A Strong Leader Faces A More Crowded Field

Oura has been the category’s clear front-runner for years, but that lead is becoming harder to defend. Rivals are approaching the market from different angles, betting that new features will help them win consumers.

French startup Circular announced this week that its next ring will support tap-to-pay functionality. Chinese company RingConn introduced a model this year with haptic vibrations, while Indian startup Ultrahuman raised $70 million with backing from Qualcomm’s venture arm.

Ultrahuman is pursuing a broader vision for the category, aiming to build a ring that can run software on-device and eventually support applications ranging from AI experiences to games.

From Health Tracker To Wrist-Free Computer

Competition is no longer limited to sleep scores or more detailed recovery insights. Smart ring makers are increasingly adding capabilities that were once associated with smartphones and smartwatches.

Some devices now include screens, such as the Pebble Halo, while others, including the Dreame Ring, promise touchpad controls. As these features expand, smart rings are taking on a more complex identity as health trackers, communications devices and miniature computing platforms.

That evolution is notable because smart rings initially attracted users partly by being less intrusive than watches and phones. They offered health monitoring without the constant presence of a display, but current product roadmaps could push the category in a different direction.

Here is a look at the most notable challengers seeking a share of Oura’s market.

Ultrahuman

Earlier this year, Ultrahuman unveiled its third-generation device, the $479 Ring Pro, which is expected to begin shipping in the US in mid-September. Its American business was disrupted in October 2025 after the US International Trade Commission ruled in Oura’s favor in a patent dispute, blocking new ring imports.

In response, Ultrahuman redesigned the Ring Pro’s form factor to address Oura’s patent claims. The new model includes a heart-rate sensing system intended to improve signal quality during sleep, along with a dual-core processor designed to improve data accuracy and increase on-device processing.

Ultrahuman also appears focused on expanding beyond health and sleep tracking toward a more software-driven product category.

Circular

Circular’s upcoming Ring 3 series, which includes Pro and Slim versions, is expected to launch early next year. Both rings will feature an integrated NFC chip for contactless payments and on-finger vibrations for silent alarms, reminders, vital alerts and other notifications.

The Ring 3 Pro will also have a thinner design than its predecessor and add FDA-cleared ECG for AFib detection, blood pressure trend tracking, glucose tracking, advanced sleep analysis and broader biometric monitoring. Pricing has not yet been disclosed.

RingConn

RingConn’s Gen 3 launched in May and starts at $349. It offers vascular health insights that analyze changes in vascular strain over time after calibration with externally measured blood pressure values.

Other features include heart rate, blood oxygen saturation, sleep, activity and stress tracking. Vibration alerts can notify users about health changes, sedentary periods and low battery levels.

Unlike Circular, which is using haptics to make the ring more interactive, RingConn is positioning vibration primarily as a health notification tool.

Samsung

Samsung became the first major technology company to enter the smart ring market in 2024 with the Galaxy Ring, which sells for $399. For consumers already invested in Samsung’s broader device ecosystem, it remains one of the most compelling options.

Still, the Galaxy Ring is relatively conservative on advanced health features compared with some rivals. It does not offer sleep apnea detection, available on Oura, RingConn and Ultrahuman, or AFib detection, available on Circular and RingConn devices.

Dreame

Dreame, a newer entrant, introduced a ring earlier this year with haptic alerts for alarms, calls, messages and other notifications. A small touchpad also allows users to skip music or take photos on their phones.

The company says the device will track heart rate, blood oxygen, heart rate variability and sleep. Pricing and availability have not yet been announced.

The Bigger Question For The Category

Smart rings are no longer a niche market dominated by health-tracking startups. Competition is increasingly centered on what the category should become: a discreet wellness device or a multifunctional platform competing more directly with smartphones and wearables.

Oura still has the strongest brand and a meaningful lead, but rivals are adding payments, haptics, touch controls, on-device software and displays. As those capabilities expand, competition is shifting from who can measure the body best to who can define the next generation of personal computing.

The Trump administration has begun drafting a postwar Middle East strategy aimed at recalibrating the regional balance of power by increasing pressure on Tehran and expanding normalization between Israel and its neighbors, Axios reported, citing two US officials and two other people familiar with the discussions.

Still in its early stages, the plan could become the Trump White House’s guiding Middle East policy for the remainder of the president’s term.

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Three Pillars Of The Emerging Plan

According to sources cited by Axios, the strategy rests on three pillars: building what officials call a “regional alignment” among US partners to deter and constrain Iran; addressing the fallout from Hamas’ Oct. 7, 2023, attack on Israel; and expanding the Abraham Accords while pursuing possible normalization between Israel and Saudi Arabia.

Discussions have also examined whether the United States could guarantee the regional alignment, whether Washington should pursue a security arrangement between Israel and Syria, and how to advance the next phase of Trump’s Gaza plan.

A Familiar Strategy, But With A More Structured Design

A regional alignment would not represent a major break with previous US policy. Since the 1979 Iranian Revolution, successive administrations have sought to curb Tehran’s influence by deepening ties with Gulf Arab states and strengthening regional security cooperation.

What appears different is the effort to turn those policies into a more formal framework, with closer defense coordination and security integration among US allies. According to the report, that push is taking shape alongside a broader shift in the regional balance of power following the Iran war.

Saudi Arabia Remains The Key Diplomatic Prize

For Washington, normalization between Saudi Arabia and Israel has long been a diplomatic objective, but efforts have repeatedly stalled. Riyadh has said formal relations must be linked to meaningful progress on Gaza and the establishment of a Palestinian state.

The effort builds on the Abraham Accords, signed in 2020 during Trump’s first term. The agreements normalized relations between Israel and the United Arab Emirates, Bahrain, Morocco and Sudan, and have since been viewed by US policymakers as a tool for reshaping regional alliances and reducing Iran’s influence.

Gaza, Syria And Lebanon Form The Other Front

Another major pillar focuses on the consequences of Hamas’ Oct. 7 attack and the war in Gaza. That effort could take three forms.

First, the administration could move to the next phase of Trump’s Gaza plan, previously reported to include reconstruction arrangements, the disarmament of Hamas and a transitional governing authority.

Second, Washington could seek a security agreement between Israel and Syria. Syria’s political landscape has changed significantly since the fall of Bashar al-Assad’s regime at the end of 2024, with the new authorities seeking to redefine the country’s regional and international relationships.

Third, the plan could involve an agreement between Israel and Lebanon to limit Hezbollah’s military capabilities. That effort is tied to the 2024 ceasefire, which required Hezbollah fighters to withdraw north of the Litani River and the Lebanese army to deploy in southern Lebanon.

Israel has since accused Hezbollah of rebuilding its military infrastructure, while Lebanon continues to report Israeli air strikes on its territory.

Not Yet A Finished Strategy

Despite the broad contours taking shape, the plan remains far from complete. One source told Axios that the administration’s thinking is still being developed.

“They are cooking it, but it is not yet cooked,” the source said. “The idea is to tie a whole lot of things in the region together — how you create a regional alignment after the war. It is still unclear if all U.S. allies in the region will be on board.”

Timing could also be shaped by the upcoming US midterm elections and Israel’s October legislative elections, both of which could alter the political environment surrounding the proposal.

The FIRE movement promised younger workers a path to financial independence and early retirement. Now, a different group is emerging in the UK: NERDs, or the “Never Ever Retiring Demographic.”

Growing pessimism among Gen Z and millennials is driving the shift, with many questioning whether retirement will ever be financially achievable. Some are responding by reducing or abandoning pension contributions altogether.

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Young Workers Are Losing Confidence In Retirement

Research from People’s Pension, a major UK workplace pension provider, found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Another 12%, equivalent to about 2.2 million young people, have stopped saving for retirement because they expect to work indefinitely.

Wider financial pressures are contributing to that outlook. High living costs have pushed milestones such as homeownership, marriage, having children and retirement further away for many younger workers, while inflation, layoffs and stagnant wages have added to uncertainty.

Pension Providers Face A Communication Gap

Financial pressure is only part of the problem. Young workers also say pension providers are failing to explain long-term saving in ways that feel relevant to them.

About 36% of respondents said providers do not explain retirement saving effectively. Among them, 27% said companies appear more focused on selling products than educating customers, while 16% cited complicated language and jargon.

A clear generational difference emerges in the responses. Some 29% of Gen Z respondents said providers fail to explain why pension saving matters, compared with 13% of Gen Xers and Baby Boomers. Similarly, 17% of Gen Z said providers do not use channels they engage with, versus 4% among older generations.

Clearer information could influence behavior. About 70% of Gen Z respondents said they would have started saving earlier if they had known that beginning in their 20s could potentially double their retirement pot compared with starting in their 30s. Another 63% said learning about tax relief and employer contributions motivated them to save.

“In a world where financial doom dominates pension conversations, young savers are tuning out,” said Kirsty Ross, proposition director at People’s Pension. “Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working.”

Young Savers Want Simpler Tools

Progress bars and goal trackers were among the most popular tools respondents said could make pensions more relevant, cited by 31%. Another 26% wanted reassurance that they could start with small amounts, while 23% wanted examples of what people their age are doing.

Clear, bite-sized steps were cited by 22%, while 19% said light-hearted and relatable stories could make pensions more accessible.

People’s Pension has responded with Pension Drop, a campaign using social media influencers, live events and lifestyle personalities to encourage conversations about retirement saving.

“Looking back, I really wish I’d started earlier,” said Iain Stirling, comedian, TV presenter and Pension Drop ambassador. He said contributions made in someone’s 20s or 30s can make a significant difference later, while employer contributions and tax relief can increase the value of smaller payments.

Small Changes Can Improve Long-Term Saving

Stirling urged younger workers to check their pension provider, establish whether they have multiple pension pots and make sure they are contributing enough to receive the full employer match.

He also recommended increasing contributions after a pay rise or bonus, allowing workers to raise long-term savings without making a large immediate change to their spending.

For younger workers facing high living costs and uncertain career prospects, pension saving remains a difficult sell. Clearer information about employer contributions, tax relief and the long-term effect of starting early could help make retirement planning more tangible.

Geely Auto will enter the Cyprus passenger car market in 2026 through a new importer and distribution partnership with KKS Mobility Ltd. The Chinese automaker signed a strategic agreement with KKS Mobility, led by automotive executive Charalambos Pilakoutas, which will represent Geely as its importer and distributor in Cyprus.

The agreement was signed in Amsterdam on Sept. 3 by Aiden He, chief executive of Geely Brand Europe and vice president of strategy and product at Geely Auto Europe, and Pilakoutas, chief executive of KKS Mobility.

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Geely Plans Three Electrified Models

The Cyprus launch is part of Geely’s broader expansion across Southern Europe, using local partnerships to establish retail, service and aftersales operations.

“Entering Cyprus represents an important step in growing Geely’s footprint across Southern Europe,” He said. He added that the partnership would combine Geely’s engineering capabilities with electric and hybrid vehicles for local customers.

Three electrified models are planned for the initial launch: the fully electric Geely E5, the fully electric Geely E2 and the Starray EM-i plug-in hybrid.

KKS Mobility Brings Local Automotive Experience

The partnership combines Geely’s vehicle technology and product strategy with KKS Mobility’s experience in the Cyprus automotive market, including retail and aftersales operations.

“Today marks a significant milestone for KKS Mobility Ltd,” Pilakoutas said. “We are honoured to partner with Geely Auto and bring one of the world’s most innovative automotive brands to Cyprus.”

Pilakoutas said the company expects Geely to become a strong and trusted brand in Cyprus, citing its technology, safety, design and value proposition.

Geely Expands Its Global Footprint

Headquartered in Hangzhou, China, Geely Auto Group develops and manufactures passenger vehicles under the Geely, Lynk & Co and Zeekr brands and is part of Zhejiang Geely Holding Group.

Geely said its operations span more than 100 countries, with research and development and manufacturing facilities in China, Europe and other international markets. Its technology portfolio includes hybrid powertrains, battery-electric platforms, connectivity and autonomous driving systems.

The group sold 3,024,567 vehicles in 2025, up 39% from the previous year and above its full-year target. New energy vehicle sales reached 1,687,767 units, an increase of 90% from 2024.

Electrification Drives Geely’s Expansion

Geely’s international strategy is increasingly focused on electrified vehicles, supported by investments in battery-electric and hybrid technologies and local partnerships.

For Cyprus, KKS Mobility will provide the retail and aftersales infrastructure needed to support the new brand. The company has decades of experience in the local automotive sector and has represented international vehicle brands in Cyprus.

Cyprus is under pressure to revise its legislation on the minimum tax for multinational groups after the European Commission called for changes to align the framework with Pillar 2 rules.

Policymakers face a difficult balance. Failure to comply could expose the Republic to penalties and broader regulatory consequences, while stricter rules could encourage some US-linked multinationals to relocate to jurisdictions exempt from the 15% minimum tax until 2029.

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Cyprus Adopted Its Framework In 2024

Cyprus approved its domestic top-up tax framework in December 2024, with the system scheduled to take effect in 2025. Under the law, multinational groups operating in Cyprus with an effective tax rate below 15% would pay the difference through a supplementary levy.

The framework was intended to give affected companies time to adapt while reducing incentives to relocate to more tax-favorable jurisdictions.

Brussels Calls For A QDMTT

The European Commission challenged the original framework, arguing that it disproportionately benefited parent companies of multinational groups with US interests. Brussels has called for a Qualified Domestic Minimum Top-up Tax (QDMTT) to ensure that minimum tax is collected domestically under the Pillar 2 framework.

A revised bill has been under public consultation since late July. It proposes introducing the QDMTT from Jan. 1, 2026, alongside amendments reflecting OECD guidance and recommendations.

Cyprus is scheduled for an assessment in autumn 2026, when its legal framework will be reviewed for compliance with internationally agreed Pillar 2 standards.

Businesses Warn Of Relocation Risk

The consultation deadline was extended from Sept. 5 to Sept. 7 because of the complexity of the issue. A recent meeting at the Finance Ministry brought together officials and professional bodies to discuss the proposed changes.

Some professional associations have warned that higher tax costs could prompt US multinationals to consider relocating to Malta, Estonia, Latvia or Lithuania. Those countries secured an exemption in 2023 that allows them to delay Pillar 2 implementation until 2029 because they had fewer than 12 subsidiaries of multinational groups above the €750 million threshold.

Professional groups reportedly told the ministry that US companies make a significant contribution to Cyprus’ public finances, paying about €140 million in taxes.

Ministry Sees Limited Room For Changes

Finance Ministry technocrats reportedly told stakeholders that there is little scope for further changes because of the European Commission’s firm position on the QDMTT.

Officials also warned that non-compliance could place Cyprus in a difficult position. The ministry aims to secure Cabinet approval as soon as possible and have Parliament pass the bill in October.

The issue is also being viewed against wider tensions between the US and European Union over international taxation, leaving Cyprus to balance regulatory compliance with its position as a destination for multinational groups.

Questions Remain Over The Original Rules

Private sources have raised concerns about the initial handling of the legislation, including the lack of clear data on the number of companies expected to be affected.

Parliament was initially told that 60 companies would be subject to the tax, but that figure later rose to 1,900. The ministry had estimated that the affected companies could generate between €200 million and €250 million in tax revenue for Cyprus. It is also understood that the draft legislation was amended in 2024 without notifying affected stakeholders, while EU authorities later informed Cyprus about the need for a qualified domestic tax.

Cyprus now faces a narrow path forward: comply with Brussels’ requirements while maintaining investor confidence and limiting the risk that mobile capital moves to jurisdictions offering more favorable tax treatment.

Cyprus recorded one of the EU’s largest monthly increases in industrial producer prices in July 2026, as energy costs pushed prices higher across the bloc. Industrial producer prices in Cyprus rose 2.3% from June, giving the country the fourth-largest monthly increase among EU member states, according to first estimates from Eurostat.

Cyprus Ranks Near The Top In Monthly Gains

Ireland recorded the strongest monthly increase at 4.3%, followed by Spain and Italy at 3% each. Cyprus ranked fourth with its 2.3% rise. By contrast, industrial producer prices fell most sharply in Estonia, down 3.3%, followed by Finland at 1.6% and Sweden at 1.1%.

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Energy Drives Higher Producer Prices

Across the euro area, industrial producer prices increased 1.6% month on month in July, while the EU recorded a 1.4% rise. Energy was the main driver, with prices increasing 5.6% in the euro area and 4.7% across the EU.

Euro area capital goods prices rose 0.3%, while intermediate and durable consumer goods were unchanged. Non-durable consumer goods declined 0.1%, leaving industrial producer prices flat when energy was excluded.

EU data showed a similar pattern. Intermediate goods rose 0.1%, capital goods increased 0.3%, and durable consumer goods gained 0.2%, while non-durable consumer goods fell 0.2%. Excluding energy, industrial producer prices increased 0.1%.

Annual Producer Price Growth Remains High

Industrial producer prices in the euro area were 5.8% higher in July than a year earlier, while the EU recorded a 5.6% increase. Energy remained the largest contributor to annual growth, rising 12.9% in the euro area and 12.5% across the EU. Euro area intermediate goods increased 6.3%, capital goods 2.6% and durable consumer goods 2.9%, while non-durable consumer goods fell 0.7%.

Across the EU, intermediate goods rose 6%, capital goods increased 2.4%, and durable consumer goods gained 2.8%. Non-durable consumer goods declined 0.9%, while industry excluding energy increased 3%.

Ireland Leads Annual Increases

Ireland posted the largest annual increase in industrial producer prices at 14.8%, followed by Lithuania at 12.9% and Bulgaria at 12.5%. Luxembourg was the only EU member state to record an annual decline, with industrial producer prices falling 7.3%.

The July figures show that industrial price pressures remain uneven across Europe, with energy costs continuing to play the largest role in the broader increase.

The European Banking Authority (EBA) has proposed new rules for determining when large investment firms should be reclassified as credit institutions, with Cyprus’ regulator urging firms to review the changes.

Launched on Aug. 25, the EBA consultation covers draft regulatory technical standards (RTS) designed to make the assessment more proportionate, transparent and linked to the risks posed by individual firms and groups.

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The €30 Billion Threshold

Under Article 8a of the Capital Requirements Directive (CRD), investment firms with total assets above €30 billion are generally expected to seek authorisation as credit institutions rather than operate solely under a MiFID investment firm licence.

Proposed RTS would establish how the threshold is calculated at individual and group level, what firms must report to supervisors and which factors authorities should consider when assessing waiver requests.

Changes to Article 8a prompted the consultation as part of a broader EU effort to align prudential requirements with the size and risk profile of large investment groups.

New Method Would Narrow The Calculation

According to the EBA, amendments to Article 8a have narrowed the scope of the group-level calculation. Under the proposed methodology, only assets held by EU undertakings and their subsidiaries conducting MiFID activities 3 and 6, along with EU branches of third-country entities within the same group, would be included.

Compared with the previous global approach, the new methodology would simplify calculations and reduce the reporting burden for affected firms.

Investment firms with total assets above €5 billion would fall within the reporting requirements. Those firms would submit two reporting templates each quarter, with monthly figures derived through simple interpolation.

Regulators Would Assess More Than Asset Size

Waiver requests would be assessed using several factors beyond a firm’s balance sheet. Authorities would consider organizational structure, booking practices and asset allocation across entities, as well as the business model and share of transactions conducted for clients.

Other factors would include tools for measuring systemic risk, the size and complexity of derivatives portfolios and the firm’s broader market footprint. Decisions would therefore consider both the scale of a group and how its activities could affect financial-system risk.

CySEC Urges Cyprus Firms To Review The Rules

Cyprus’ Securities and Exchange Commission (CySEC) has urged local investment firms to examine the consultation paper and draft RTS, particularly their potential effects on business models, group structures and prudential reporting systems.

Firms are also encouraged to submit feedback before the rules are finalized. Comments are due by Nov. 25, 2026. A virtual EBA public hearing is scheduled for Sept. 30 at 10 am CEST, with registration open until Sept. 25.

Rules Could Affect Large Investment Groups

For firms approaching the €30 billion threshold, the proposed methodology could affect governance, capital planning and group structures. It also reflects closer EU supervision of investment firms whose scale and activities may create risks similar to those associated with banks.

Three areas are covered by the EBA’s work at the request of EU legislators: calculating CRD thresholds, collecting information for ongoing supervision and defining criteria for regulatory waivers.

Firms with complex group structures or rapidly growing asset bases will need to assess how the proposed framework applies to their operations before the standards are finalized.

Cyprus’ annual inflation rate rose to 5.2% in August, widening its gap with the eurozone and extending a sharp increase in price growth since the spring.

Eurostat data showed inflation in Cyprus has exceeded the eurozone average for a fourth consecutive month. Eurozone inflation stood at 3.3% in August, putting the gap at 1.9 percentage points.

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Inflation Has Accelerated Since March

Cyprus recorded annual inflation of 0.0% a year ago, before the rate began rising this year. Inflation reached 1.5% in March, followed by 3.0% in April, 3.5% in May, 4.1% in June, 4.4% in July and 5.2% in August.

That represents an increase of 3.7 percentage points in five months. The acceleration has put Cyprus among the euro area economies experiencing the fastest price growth.

Cyprus Ranks Among The Euro Area’s Highest

At 5.2%, Cyprus had the second-highest inflation rate in the euro area in August, behind Lithuania at 5.8%. Bulgaria followed at 5.1%. Inflation was considerably lower in Germany at 2.9% and France at 2.7%. Italy recorded 3.2%, Greece 3.7% and Spain 4.5%.

The widening difference from the eurozone average indicates that price pressures in Cyprus are persisting even as inflation remains lower elsewhere in the bloc.

Government Measures Have Limited The Pressure

Finance Minister Makis Keravnos has said inflation is expected to remain elevated through the end of the year, at around 4%, while the government continues measures aimed at containing prices.

Several measures remain in effect. The reduced excise duty on fuel is currently scheduled to run through the end of September 2026, while a 5% VAT rate on electricity for all household consumers remains in place until March 31, 2027.

A zero VAT rate on meat, poultry and fish has also applied since April 1 and is scheduled to remain until Sept. 30, 2026. Some measures could be extended, including the fuel tax reduction.

Higher Prices Put Pressure On Households

A 5.2% inflation rate does not mean every product has become 5.2% more expensive. The impact depends on how individual household budgets are distributed and which categories are experiencing the fastest price increases.

Lower- and middle-income households can face greater pressure when essential goods and services rise faster than wages. Unless incomes keep pace with inflation, purchasing power declines and households can afford fewer goods and services with the same income.

Persistent price growth can also weigh on consumption and household confidence. For Cyprus, the latest figures indicate that inflation remains a broader economic issue rather than a short-lived increase.

Inflation Remains A Policy Challenge

With Cyprus’ inflation rate still well above the eurozone average, pressure on households is likely to continue if the divergence persists.

Government measures are providing some relief, but the latest data show they have not reversed the broader increase in prices. Finance Ministry forecasts currently point to inflation remaining around 4% through the end of 2026.