Chamber Issues Stern Warning Against Bank Tax

The Cyprus Chamber of Commerce and Industry (Keve) has issued a forceful statement opposing the proposed imposition of additional taxation on banks. The chamber argues that further levies would be economically unsound and send a negative signal to international investors.

Heavy Tax Burdens And Their Impact

Keve highlighted that banks have already contributed significant tax revenues between 2017 and 2024, reporting €285 million in corporate tax and €470 million in special levies on deposits. This cumulative contribution of €755 million has supplied the state with ample resources to support borrowers and vulnerable groups, rendering any extra tax unnecessary.

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Risks To Financial Stability And Investor Confidence

The chamber stressed that using taxation as a tool of social policy is inappropriate. Targeting banks, which are a key pillar of the economic framework, could undermine the predictability and stability of Cyprus’s tax and institutional environment. In a climate where investor confidence is paramount, such a strategy risks weakening the country’s credibility on the international stage.

Broader Implications For Monetary And Lending Policies

Concerns extend beyond immediate fiscal impacts. The European Central Bank (ECB) has warned that increased taxation based on customer deposits may disrupt the transmission of monetary policy, impacting credit institutions’ ability to maintain appropriate capital buffers and set competitive lending rates. Using Belgian banks as an example, the ECB noted that even well-capitalized institutions might face procyclical pressures, potentially restricting lending to households and firms.

Setting A Precedent With Lasting Consequences

In addition to domestic concerns, Keve cautions that targeting a specific sector could set a dangerous precedent. Diverging from the policy recommendations of the International Monetary Fund and the European Stability Mechanism, such a move distinguishes Cyprus from high-credit rating EU member states like Germany and the Netherlands, which do not impose extraordinary sector-specific charges.

Looking Ahead: Balancing Social Objectives With Economic Stability

While Keve supports well-targeted social support measures, it insists that these initiatives must not compromise financial stability, investor confidence, or Cyprus’s international competitiveness. The chamber further called on all businesses to contribute to society through robust corporate social responsibility programs.

Introduction: A New Era In Private Travel

The private aviation sector in Greece is poised for a significant upgrade as Zela Jet, part of the respected Zela Aviation Group and led by Cypriot entrepreneur Andreas Christodoulides, partners with Fly Cycladic, one of the nation’s most dynamic charter airlines. This strategic alliance is designed to offer a seamless travel experience for high-net-worth individuals and business leaders alike.

Streamlined Access Across Greek Destinations

The collaboration specifically targets routes that were previously reliant on ferries, helicopters, or commercial flights with lengthy layovers. Under this agreement, Zela Jet will serve as the exclusive General Sales Agent (GSA) for Fly Cycladic in Cyprus, managing private flights from key Greek airports to popular destinations such as Athens, Mykonos, Santorini, Paros, Milos, Naxos, Astypalaia, Syros, and Crete. For discerning travelers, this partnership offers unmatched flexibility, comfort, and efficiency.

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Enhanced Service And Market Penetration

Christodoulides expressed strong confidence in the venture, highlighting Fly Cycladic’s reputation for upholding rigorous quality and safety standards. He emphasized that Zela Jet’s commitment is to promote and support these premium services in Cyprus with professionalism and consistency. This initiative is expected to unlock new opportunities for seasonal and year-round travel, ensuring a reliable, high-caliber experience for every passenger.

Innovative Fleet And Cutting-Edge Technology

Fly Cycladic, founded in 2022, focuses on inter-island connectivity and operates with a fleet of three state-of-the-art single-engine high-wing turboprop aircraft, the Cessna Grand Caravan 208B EX. These planes, notable for their large windows and natural light design, not only deliver stunning views of the Aegean Sea but also incorporate the latest technological advancements while adhering to international environmental standards. This modern fleet aligns perfectly with the shift towards more sustainable aviation.

A Vision For The Future Of Aviation

Representing Fly Cycladic, Andreas Sotiropoulos outlined the company’s ambition to provide a balanced combination of experience, safety, flexibility, and convenience. The partnership, effective February 1, 2026, is poised to meet the needs of both modern business travellers and those seeking an elevated travel experience. By bridging functional connectivity with premium service, Zela Jet and Fly Cycladic are setting a new benchmark in private aviation.

High-Level Strategic Engagement

Chief Scientist Demetris Skourides led Cyprus’ delegation at the invitation-only EU-India Forum held in New Delhi on February 6–7. Accompanied by Heraklitos Iosifides, Deputy Chief of Mission at the Cyprus High Commission in India, and Nicolas Kyriakides, President of the Cyprus Forum, the delegation underscored Cyprus’ strategic intent within the evolving EU-India Innovation and Technology Partnership.

Transforming Political Commitments Into Operational Impact

Set against the backdrop of the 16th India–EU Summit and the landmark India–EU Free Trade Agreement, the forum acted as a bridge between high-level political commitments and practical cooperation. Hosted by India’s Minister of External Affairs S. Jaishankar and organized by the Ananta Centre in partnership with the Ministry of External Affairs, the event focused on priority areas such as maritime security, emerging technologies including semiconductors, cybersecurity and AI governance, as well as connectivity and sustainable energy.

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Forging Strategic Alliances Across Sectors

More than 200 senior policymakers, industry leaders, technocrats, and experts from India and all 27 EU Member States converged to explore sectors spanning Security and Defence, Technology, and Trade. Panel discussions emphasized the need for interoperability in AI ethics, the upgrading of digital infrastructure, and the establishment of enhanced trade architectures to foster mutual economic benefits. The sessions brought forward dynamic perspectives on safeguarding Europe’s competitive edge amid rapid technological advancements, with notable contributions from influential figures including Commerce Minister Piyush Goyal and former Principal Scientific Adviser Professor K. Vijay Raghavan.

Pathways To An Operational Innovation Engine

Looking forward, Cyprus is poised to extend these strategic dialogues into tangible innovation and research initiatives. Chief Scientist Skourides, with plans to further his engagement during Deputy Minister Nicodemos Damianou’s forthcoming visit and at the India AI Impact Expo 2026 in New Delhi, aims to shape an operational India-Cyprus Innovation Engine. This initiative is designed to connect digital infrastructure, talent mobility, and investment pathways, providing a scalable platform for startups and high-tech ecosystems to prosper in Cyprus.

Consolidating A Position As A Regional Innovation Hub

Emphasizing Cyprus’ unique geographical and strategic positioning at the crossroads of Europe, the Middle East, and Asia, Skourides articulated a clear mandate for the nation’s role as a trusted innovation gateway. With Cyprus’ upcoming Presidency of the Council of the European Union reinforcing its commitment to digital autonomy, sovereignty, and ethical AI, the country is set to convert strategic discussions into substantial economic growth, scientific excellence, and enhanced global collaboration.

Overview: Rethinking The Threat Landscape

Recent analysis by the Cyprus Economy and Competitiveness Council indicates that neither regional geopolitical tensions, a potential surge in public debt, a collapse of the healthcare system, nor a systemic banking failure currently pose the gravest threat to the Cypriot economy. Instead, the dominant risk remains the protracted drought conditions affecting the island.

Drought: The Critical Economic Vulnerability

According to the report, extended dry periods now represent the most immediate and far-reaching danger to Cyprus’ economic stability. Water shortages affect far more than agriculture. They influence energy production, tourism, public infrastructure and long-term investment confidence, making drought a cross-sector challenge rather than an isolated environmental issue.

Key Risk Indicators And Expert Analysis

Compiled in the fourth consecutive annual risk assessment by the Cyprus Economy and Competitiveness Council, the study enlisted the perspectives of 54 leading figures from the private sector, academia, and economic policy. Contributors such as Evangelos Tryfonos, Council Member, and Panagiotis Panagiotou, Director of Pulse Market Research, provided critical insights into a range of potential economic hazards.

Assessing Risks: A Data-Driven Approach

The research methodology involved ranking risks based on their likelihood of occurrence, the severity of potential outcomes, and the expected timeframe for their manifestation. Among the findings, four primary risks emerged based on a combined probability and impact score:

• Protracted Drought and Water Scarcity (91%)
• Cyber Attacks On Critical Infrastructure (82%)
• Deteriorating Climate Conditions (80%)
• Shortage Of Skilled Personnel (80%)
• Digital Transformation Failures (79%)

Digital Vulnerabilities And The Skills Gap

Beyond environmental threats, digital risks are gaining prominence. Cyber attacks on critical infrastructure received an 82% risk score in the assessment, placing them among the most urgent concerns. Increased reliance on online services and automated systems has made both businesses and public institutions more exposed to disruptions. At the same time, the shortage of specialised talent continues to slow digital progress and heighten operational vulnerability across sectors.

A Comprehensive Framework For Risk Mitigation

Beyond individual hazards, the research categorizes the risks into four broader segments to enhance strategic understanding and policy response:

• Geopolitical Security & External Shocks
• Institutional Strengthening & Structural Risks
• Social & Environmental Resilience
• Macroeconomic Stability

Governmental Dialogue And Policy Implications

Cyprus Economy and Competitiveness Council President Dimitris Georgiadis emphasized that the risk evaluation process is not confined to the Council alone. Instead, it represents a coordinated effort involving key institutions such as the Ministry of Finance, the Central Bank, and the Fiscal Council. The ongoing public dialogue has proven essential in identifying and prioritizing the nation’s critical vulnerabilities.

This rigorous research underscores the necessity for proactive measures and robust policy frameworks to safeguard Cyprus’s economic future against both immediate and systemic risks.

Robust Economic Trajectory In Cyprus

The Cyprus Composite Leading Economic Index (CCLEI) recorded a 2.9% year‐on‐year increase in January 2026, as per the revised data from the University of Cyprus‘s Economics Research Centre (CypERC). This performance, though slightly slower than the 3.1% and 3.2% gains recorded in December and November 2025 respectively, confirms resilient economic fundamentals over the period.

Sectoral Contributions And International Influences

Key components such as temperature-adjusted electricity production, property sales contracts, tourist arrivals, and retail trade activity all posted positive year-on-year growth. In contrast, external factors such as a marked reduction in Brent crude oil prices and diverging economic sentiment indicators between Cyprus and the euro area highlight a complex external environment. While the Economic Sentiment Indicator (ESI) across the euro area improved in January, the domestic ESI in Cyprus declined, reflecting a weakening business climate in the services and industrial sectors.

Detailed Insights Into Business And Consumer Confidence

Additional surveys outlined a slight deterioration in economic sentiment within Cyprus. The overall decline in the Economic Sentiment Indicator, notably a 0.2-point drop from December 2025, was primarily driven by reduced confidence in the construction, retail trade, and industrial sectors. Despite improvements in the Services Confidence Indicator and stable consumer confidence levels, adjustments in stock levels and revised sales expectations contributed to a softer outlook among business leaders. Construction firms, facing seasonal constraints and labor shortages, adopted a more neutral stance, while industrial players tempered expectations due to less favorable assessments of stock levels and production.

Methodology And Future Outlook

The CCLEI, designed to provide early warning signals for turning points in business cycles, derives its insights from an array of domestic and international indicators. These include tracking trends such as the Brent crude oil price in euros, property sales contracts, tourist arrivals, and credit card transaction values. The centre’s ongoing assessment, including its recent summary of business and consumer surveys, suggests that despite external geopolitical and economic uncertainties, the Cypriot economy maintains a stable growth trajectory.

Innovative Landscape Of Deep Tech

Cyprus has drawn attention in a recent EU-backed study examining the gender investment gap across Europe. The report highlights the growing importance of deep tech, a sector built on scientific research and advanced engineering, as a key driver of Europe’s long-term competitiveness, security, and economic resilience.

Understanding Deep Tech

Deep tech companies often emerge from universities and research laboratories. They focus on areas such as artificial intelligence, semiconductors, robotics, quantum computing, climate and energy systems, biotechnology, and advanced industrial technologies. Unlike consumer-oriented startups, these businesses usually require longer development timelines, highly specialized talent, and substantial upfront investment before they reach the market.

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Funding Disparities And European Competitiveness

The study notes that the funding gap is not only a question of equality but also a strategic economic concern. Access to early-stage and follow-on capital largely determines which technologies scale and which stall. This has direct implications for Europe’s green and digital transitions, industrial leadership, and its dependence on foreign technologies in critical sectors.

Empowering Through Data-Driven Insights

One of the key outcomes of the project is the “Gender Gap in Investments Dashboard,” developed using Dealroom data. The platform aggregates information on founding teams and venture funding across Europe, offering policymakers and investors a clearer view of current trends. According to the findings, startups with at least one female founder account for 14.4 percent of venture capital rounds and 12 percent of total funding. In deep tech, however, the imbalance is sharper, with nearly 90 percent of investments still going to all-male teams.

Cyprus: A Case of Contrasts

Cyprus presents a mixed picture. The country shows one of the highest shares of deep-tech firms founded exclusively by women at 17 percent, although this figure is based on a small number of companies. In the broader technology sector, where 152 firms were analyzed, female-led businesses represent only 14.5 percent. As an EU “widening country,” Cyprus is also eligible for targeted SME support programs, which could help narrow these gaps if used effectively.

Navigating Structural Barriers

Industry insiders, including Stavriana Kofteros, founder and partner at W11 Ventures, emphasize that the challenge lies not in the availability of talent but in translating research into market-ready companies, especially those led by women. Persistent structural barriers such as fragmented support ecosystems, credibility issues in fundraising, and limited diversity in investment decision-making further exacerbate the disparities.

Toward a Collaborative, Data-Driven Future

The report recommends creating a permanent European data hub focused on gender and investment trends, alongside shared reporting standards across EU and national funding programs. Strengthening links between early-stage support and growth financing is also seen as essential. Public investment tools, including mechanisms such as the European Innovation Council, are viewed as catalysts that can attract greater private capital into deep-tech ventures.

Conclusion

The study suggests that better data, coordinated policy, and stronger ecosystem cooperation are crucial for building a more inclusive deep-tech environment. Europe’s competitiveness, it argues, will increasingly depend on its ability to recognize, measure, and scale the contributions of women innovators alongside broader technological progress.

Bitcoin’s brief recovery has lost momentum as ongoing market volatility continues to exert pressure on the world’s largest cryptocurrency. Trading around $66,166 at 10:21 a.m. ET, Bitcoin has seen a roughly 4% decline for the day, underscoring the challenges it faces in maintaining upward momentum.

Short-Lived Bounce Undone

After reaching an all-time high above $126,000 in October, Bitcoin began a downward trajectory, with the sell-off intensifying over the last month. The digital coin dropped below $70,000 on February 5 and briefly approached the key $60,000 threshold, only to rally to a range between $66,000 and $72,000 thereafter. Despite intermittent recoveries, Bitcoin remains approximately 47% below its record high.

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Market Dynamics And Liquidations

The latest decline was driven in part by cascading liquidations as prices crossed key technical levels, forcing leveraged traders to close positions. Volatility in U.S. technology stocks, which often move in tandem with crypto assets, added further pressure. Institutional selling, including activity linked to Bitcoin exchange-traded fund issuers, also contributed to the drop, although recent net inflows into ETFs have provided limited support.

Assessing Bitcoin’s Cyclical Patterns

Market participants are now debating whether Bitcoin’s traditional four-year cycle remains intact. Historically, halving events, which reduce miner rewards approximately every four years, have been followed by strong rallies and later corrections. The most recent halving in April 2024 has revived discussions about whether a similar pattern will unfold again.

Steven McClurg, CEO of Canary Capital, recently remarked that he expects 2026 to represent a bearish phase within the four-year cycle, with potential dips to as low as $50,000 before a fall turnaround in the autumn. This view is echoed by Markus Thielen of 10X Research, who also anticipates similar price pressure. Concurrent factors, including speculation around U.S. monetary policy shifts following former U.S. President Donald Trump’s nomination of Kevin Warsh for Fed chair, add further layers of uncertainty to the market outlook.

Regulatory Alignment And Financial Stability

Cyprus has solidified its reputation as a mature and reliable investment destination offering unparalleled access to the European Union. Philokypros Roussounides, Secretary General of the Cyprus Chamber of Commerce and Industry, underscored at the Money Conference that the nation’s regulatory and supervisory framework is fully harmonized with European standards. This alignment enhances transparency and mitigates systemic risk, creating a secure and predictable environment for both institutional and private investors.

Digital Transformation And Evolving Financial Ecosystem

A profound restructuring and consolidation of the Cypriot banking system have laid the groundwork for a resilient financial sector. Roussounides highlighted that ongoing digital transformation initiatives are driving significant progress, positioning Cyprus as an increasingly attractive hub for technology and financial services companies that wish to penetrate the European market through flexible and competitive means.

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Diversified Growth And Sustainable Finance

Beyond its traditional sectors, Cyprus is actively diversifying its economic model by investing in energy, shipping, technology, professional services, and international business activities. Strategic investments in sustainable finance are further bolstering the nation’s growth trajectory. Improvements in infrastructure, streamlined procedural reforms, and a suite of investment incentives are compounding Cyprus’s appeal as a destination for long-term, strategic investment.

Reform-Driven Economic Transformation

Roussounides stressed the importance of continuous reform to further modernize the economic structure, enhance export potential, and realize the vision of transforming Cyprus into a regional financial center in the Eastern Mediterranean. Such ambitious reforms, propelled by recommendations from the Cyprus Chamber of Commerce and Industry, are set to reinforce Cyprus’s standing as a modern, agile, and developed economy within both the European Union and the broader Mediterranean region.

A Reliable Investment Destination

With a stable macroeconomic environment, a restructured and resilient banking system, and a financial ecosystem characterized by innovation, transparency, and sustainability, Cyprus stands out as a premier investment destination. For those seeking secure institutional backing and sustainable long-term returns, the country offers a myriad of comparative advantages in an ever-evolving global market.

French AI startup Mistral AI has announced an ambitious investment of 1.2 billion euros in Sweden’s digital infrastructure, with a focus on deploying advanced AI data centers. This decisive move comes as Europe accelerates efforts to secure technological sovereignty in the face of escalating geopolitical tensions.

Committed To Advancing AI Innovation

During the announcement, CEO Arthur Mensch emphasized the strategic importance of the initiative: “This investment is a concrete step toward building independent capabilities in Europe, dedicated to AI.” By establishing a fully vertical stack that processes and stores data locally, Mistral AI aims to bolster Europe’s competitive edge across industries, public institutions, and research communities.

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Robust Funding And Strategic Partnerships

Founded in 2023, Mistral AI has swiftly risen as a leading force in the European AI landscape, recently securing 1.7 billion euros in funding that valued the company at 11.7 billion euros. Prominent investors include Dutch semiconductor equipment specialist ASML, alongside tech giants such as Nvidia and Microsoft, and major venture capital firms such as DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, and Index Ventures.

Expanding Beyond Large Language Models

Although the company initially focused on large language models, it has since broadened its scope. In June, Mistral introduced Mistral Compute, an integrated platform that combines GPU infrastructure, APIs, and fully managed platform-as-a-service tools. This shift toward end-to-end infrastructure reflects a wider industry trend. Nordic countries, known for cooler climates and relatively low energy costs, are increasingly attractive locations for large-scale computing facilities.

Forging A European AI Cloud

In collaboration with Swedish data-center operator EcoDataCenter, Mistral AI plans to deploy high-performance AI computing capacity outside France for the first time. The facility is expected to go live in 2027 and will support the training and operation of next-generation AI models. The project aligns with broader European ambitions to establish a sovereign AI cloud and reduce dependence on non-European providers.

As global competition intensifies and U.S. rivals such as OpenAI and Anthropic continue to secure massive funding, Europe’s targeted infrastructure investments may play a decisive role in shaping the continent’s long-term position in artificial intelligence.

 

Patient Depositors Face Minimal Returns

For depositors willing to lock their funds for over a year, even marginal interest returns can be realized. In contrast, those opting for deposits of less than one year receive negligible interest, as banks capitalize on near-zero rates for short-term liquidity. This leaves many investors scrambling for alternative fixed-income instruments that offer satisfactory performance.

Alternative Investments And The Rise Of Real Estate

Banks have not introduced many new investment products lately, effectively steering investors toward real estate, which typically offers stronger returns than traditional deposits. Time-deposit schemes launched several years ago under regulatory and political pressure once provided gradually increasing interest rates over 12, 18, and 24 months. In 2024, the average yield for long-term deposits stood slightly above 1.5 percent. Since then, high deposit rates have slipped off the policy agenda, and with liquidity levels remaining abundant, yields have settled back at historically low levels.

Comparative Analysis: Cyprus Versus The Eurozone

The persistently low interest rates on deposits in Cyprus have positioned them among the smallest in the Eurozone, despite sporadic upward movements in time deposit rates. Data from the Central Bank indicates a gradual reversion to the subdued levels observed in 2023. For example, by December 2025, the average market rate for household time deposits up to two years had dropped to 0.75%, matching figures seen in November, compared to 1.19% in December 2024.

Market Dynamics And Future Outlook

In 2024, deposit yields were notably higher as banks were compelled, amid political pressure, to increase rates. By December 2023, the average deposit rate was 0.69% compared to a mere 0.13% in 2022. Furthermore, the rates on household deposits flagged for durations exceeding three months remained effectively stagnant at 0.07% throughout 2023 to 2025.

For corporate deposits, the average market rate currently hovers around 1.11%, down from 1.82% in December 2024 and 1.69% in December 2023. Analyses from the Central Bank also note that rates for new time deposit products continue to decline. For instance, household deposits with maturities between one and two years fell from 1.57% in December 2023 to 0.83% in December 2024 and further down to 0.49% in December 2025.

Transparent Data Limitations

It is important to acknowledge the limitations inherent in the published data by the Central Bank. The bank does not routinely disclose whether the deposits recorded are bound for one year or more versus those of shorter durations, nor does it provide the average size for each category of deposit. This lack of granularity makes it challenging for investors and industry observers to draw precise conclusions regarding the evolving deposit landscape.