The agreements slated for signing on February 17th represent a pivotal step for Cyprus, marking some of the most significant energy partnerships in the nation’s history. Minister of Energy, Trade, and Commerce George Papanastasiou, alongside Egypt’s Petroleum Minister Karim Badawi and Chevron’s Vice President for International Exploration and Production, Frank Cassulo, underscored this during their tour of Old Nicosia.

Papanastasiou emphasized the importance of these agreements, particularly for the development of Cyprus’ natural gas fields. “These agreements focus on the exploitation of the Kronos field, and we’re also finalizing a Memorandum of Understanding for the Aphrodite field,” he explained. The MoU, he added, lays the groundwork for a host-country agreement, setting the stage for future collaboration.

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Badawi echoed the significance of the upcoming signing, describing it as a milestone that could “unlock Cyprus’ potential for the benefit of all.” He highlighted Egypt’s infrastructure as a key factor in realizing the shared vision, noting that cooperation between the two nations is a strategic fit given their complementary strengths—Cyprus’ natural wealth and Egypt’s well-established energy infrastructure.

The Egyptian Minister also pointed to the strong relationship between the two countries’ leaders, President Christodoulides and President Sisi. This rapport, he said, has laid the foundation for accelerating energy cooperation. “The invitation for President Christodoulides to join us in Egypt for the signing is an honor. It reflects our shared commitment to advancing these critical agreements,” Badawi remarked.

Papanastasiou underlined that the collaboration goes beyond business. “Human connections strengthen our partnerships,” he noted, adding that the agreements signal the start of broader bilateral and regional efforts to enhance energy connectivity.

Both ministers stressed that the Kronos and Aphrodite projects are just the beginning. Badawi called the timing “fantastic,” citing alignment not only in resources but also in ambition. “When the stars align, you seize the moment,” he said, describing the partnership as a model for how nations can work together to unlock regional energy potential.

Looking ahead, the agreements are poised to pave the way for more discoveries and deeper collaboration, solidifying Cyprus and Egypt as key players in the Mediterranean energy landscape.

The International Monetary Fund (IMF) has forecast that the UAE will continue to experience robust economic growth, estimating a steady 4% growth in 2025 despite a dip in oil production.

Non-Oil Sector Driving Growth

The IMF highlights that the UAE’s non-hydrocarbon sectors, notably tourism, construction, public spending, and financial services, are propelling this growth. These industries are expected to remain key contributors to the country’s economic momentum in the near future.

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Following a recent staff visit to the UAE, the IMF issued a statement discussing the country’s economic outlook, financial developments, and policy priorities. The UAE’s non-oil sector showed impressive performance, as evidenced by a notable rise in the S&P Global UAE Purchasing Managers’ Index (PMI), which hit a nine-month high of 55.4 in December, up from 54.2 in November.

Oil Sector And Inflation Outlook

Despite challenges in oil production, the IMF predicts a 2% growth in the oil sector, influenced by OPEC+ production cuts and the UAE’s cautious approach to increasing its OPEC+ production quota.

Inflation in the UAE is expected to remain manageable at around 2% in 2025, even with rising costs in housing and utilities. The IMF anticipates that capital inflows will continue to be strong, fueled by the country’s pro-business reforms, which should keep demand for real estate high and support price growth across various property segments.

Fiscal And Current Account Surpluses

The IMF projects a slight easing of the UAE’s fiscal surplus, predicting it will decrease to 4% of GDP in 2025, down from an estimated 5% last year. The current account surplus, however, is forecast to remain strong at about 7.5% of GDP. With international reserves still solid, the UAE is well-positioned to cover more than eight and a half months’ worth of imports.

Revenue Outlook

Despite the ongoing volatility in global oil prices, the IMF expects a decline in hydrocarbon revenue, alongside steady growth in non-oil revenues. The country’s implementation of a corporate income tax is expected to provide a consistent revenue stream in the coming years.

In its report, the IMF commended the UAE’s reform initiatives, noting that they play a crucial role in ensuring sustainable medium-term growth while also facilitating the country’s energy transition. The IMF emphasized the importance of a well-planned and sequenced approach to ensure the success of these reforms.

After a recent outage that temporarily took ChatGPT offline, OpenAI has successfully restored service. The disruption, which affected thousands of users globally, was marked by over 10,000 complaints reported by users in the United Kingdom, according to Downdetector, a website monitoring service. The outage began around 11:00 GMT on Thursday, with users receiving a “bad gateway error” when trying to access the AI tool.

OpenAI quickly acknowledged the issue on its status page, confirming that a fix was implemented by 15:09 GMT and that they were monitoring the results. Although the exact cause of the outage was not disclosed, the company stated on social media, explaining that high error rates earlier in the day were linked to problems with one of their providers. OpenAI assured users that the issue had been addressed and normal service would resume shortly.

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A Surge In Popularity Amidst Service Interruptions

Since its launch in November 2022, ChatGPT has seen an unprecedented rise in popularity, with OpenAI CEO Sam Altman announcing that by December 2024, the platform would be used by over 300 million people worldwide. Despite the occasional outages, the service remains incredibly popular, with many users opting for the free version, while others subscribe to various paid tiers, which can cost up to $200 per month.

This surge in demand comes in the wake of significant investments into AI infrastructure, including a $500 billion commitment from tech giants such as OpenAI, Oracle, and SoftBank. The investment, part of the Stargate project, aims to solidify American leadership in the global AI race.

A History Of Service Interruptions

While the recent outage may have been one of the more noticeable incidents, it is not the first time that ChatGPT has faced service interruptions. In the previous month, users encountered “internal server errors” when attempting to interact with the platform, coinciding with a power issue at one of Microsoft’s data centers. Another major outage in June impacted multiple AI tools, adding to a growing list of disruptions.

Additionally, just days before this latest incident, OpenAI’s new video generation tool, Sora, went offline alongside ChatGPT for several hours. This series of disruptions has raised concerns about the reliability of the service, even as the platform continues to gain traction globally.

The Stargate Project And AI’s Future

The ChatGPT outage occurred just one day after the announcement of the ambitious $500 billion Stargate project. OpenAI, along with its partners — Oracle and SoftBank — unveiled the initiative, which is designed to enhance American leadership in artificial intelligence. The project is expected to drive significant economic growth globally, creating hundreds of thousands of jobs. OpenAI has emphasized that the infrastructure will play a pivotal role in transforming the AI landscape, positioning the United States as a leader in global AI innovation.

Despite the recent service interruptions, ChatGPT’s growth and the grand vision surrounding the Stargate project reflect the ever-expanding influence and potential of generative AI technologies in shaping the future.

In a major development for the UAE’s transport infrastructure, Etihad Rail has unveiled a new high-speed train project that will link Abu Dhabi and Dubai in just 30 minutes, reaching speeds of up to 350 km/h. This ambitious initiative was launched at an official ceremony at Al Faya Depot, with the esteemed presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and other key figures.

A Game-Changer For Connectivity And Sustainability

The new high-speed rail line is set to transform connectivity between the two Emirates, slashing travel time and enhancing the overall experience for citizens, residents, and tourists alike. By integrating state-of-the-art technologies, this project further cements the UAE’s position as a global leader in smart transportation, while also contributing to the country’s Net Zero 2050 Strategy.

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Attendees of the launch event included His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. Both leaders emphasized how the rail project reflects the UAE’s forward-thinking approach to national development, enhancing mobility, business, and investment opportunities across sectors such as logistics and tourism.

Paving The Way For Economic Growth And Innovation

The high-speed train will play a vital role in boosting the UAE’s economy, expected to contribute a staggering AED 145 billion to the nation’s GDP over the next 50 years. It will also enhance the UAE’s competitiveness, positioning the country as a global hub for innovative transport solutions. In addition to its economic impact, the rail system will help drive tourism and business growth, enabling seamless travel to key tourist attractions and business districts.

Sheikh Khaled noted that the project is in line with the UAE leadership’s vision to advance infrastructure, elevate national standards, and foster sustainable development, reinforcing the country’s commitment to shaping a greener and more connected future.

A Milestone In The UAE’s Rail Evolution

Etihad Rail is overseeing the development and operation of this high-speed project, building on its success in establishing the national rail network. Once complete, the train will provide a swift, comfortable travel experience for passengers, passing through important destinations along the way.

The project also marks significant milestones, including the issuance of tenders for contracts and approval of network designs. Further phases are expected to roll out over the coming years, setting the stage for the system’s final completion.

The UAE’s First Passenger Train Fleet And More Stations To Come

Alongside the announcement of the high-speed train, the UAE’s first passenger train fleet was introduced, boasting advanced features and designed for speeds of up to 200 km/h. The fleet is part of a wider initiative to offer reliable and efficient travel options, enhancing national connectivity.

The first four passenger rail stations in Abu Dhabi, Dubai, Sharjah, and Fujairah were also unveiled during the ceremony. These stations, strategically located and equipped with modern facilities, will integrate seamlessly with metro and bus lines, creating a fully connected, sustainable transport network across the Emirates.

As the UAE continues to develop its rail infrastructure, the high-speed train project represents a bold step forward in reshaping the nation’s transport landscape and reinforcing its position as a global leader in innovation and sustainability.

After its initial rollout in China earlier this year, Tesla’s revamped Model Y is now making its way to North America and Europe. This latest iteration of the popular electric vehicle (EV) brings some significant updates and a noticeable price bump.

What’s New With The Model Y?

The updated Model Y is packed with enhancements, starting with a longer driving range and all-wheel drive. The starting price for the new model in the US is $59,990, a 25% increase from the previous version, which retailed at $47,990. One of the standout features is the inclusion of Tesla’s autonomous driving software, previously available as an $8,000 option.

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Aesthetically, the Model Y now comes with redesigned front and rear lights, alongside a fresh interior that includes an 8-inch touchscreen for rear passengers. Tesla has also upgraded the audio system with additional speakers and fine-tuned the suspension to deliver a smoother ride. Deliveries for the new Model Y are slated to begin in March, with Tesla offering four versions of the vehicle in the US, the highest-priced of which is the newly released variant.

The Bigger Picture

Since its debut in 2020, the Model Y quickly rose to become Tesla’s top-selling car, even claiming the title of the best-selling car globally in 2023. However, last year saw a slight dip in its sales due to increasing competition in markets like China and a slowdown in demand for EVs in general.

Tesla’s European Push Amid Industry Challenges

Tesla’s European launch comes at a pivotal time for the region’s auto industry. The European Commission is working on a subsidy program designed to stimulate demand for electric vehicles, though details are still in the planning stages. With competition heating up, this new version of the Model Y could help Tesla maintain its stronghold in the fast-evolving European EV market.

On the occasion of the inauguration of the 47th President of the United States, Donald Trump, on January 20, 2025, and his campaign promises to implement protectionist policies in US trade, Eurobank analysts have provided insights into the potential effects on the Greek economy. These effects are outlined in the weekly bulletin “7 Days Economy,” using the most recent trade data between Greece and the US.

In the 11 months from January to November 2024, the share of the US in total Greek merchandise exports was around 4.8% or €2.19 billion at current prices. However, the impact of any potential protectionist policies by the US may not be limited to direct effects on Greek exports but may also have indirect repercussions. These could stem from Greece’s trade relations with the European Union (EU), where around 20% of EU-27 exports are purchased by US entities.

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According to the latest trade data from Eurostat, Greek exports of goods to the US during this period amounted to €2.19 billion, while imports from the US stood at €1.99 billion. As a result, Greece had a trade surplus with the US of €203.5 million. When breaking it down by category, food and live animals showed the largest surplus at €521.6 million, while fossil fuels, lubricants, and related products recorded the biggest deficit at €399 million.

The share of Greek merchandise exports to the US stood at 4.8% in the period from January to November 2024, slightly above the long-term average of 4.5%. For the entire year of 2024, Greek exports to the US are expected to account for 1% of Greece’s GDP. Among the product categories, the US accounted for 7.7% of Greek food and live animal exports, followed by oils and fats (7.2%), machinery and transport equipment (6.5%), and manufactured goods mainly classified by raw materials (5.1%).

A potential increase in tariffs on products imported by the US from the EU-27 could negatively affect some of these Greek exports, particularly in the food and live animals sector, oils and fats, and machinery. For 2024, Greek exports of goods to the US are projected to reach 1% of GDP or approximately €2.4 billion. The extent of the impact on Greek exports will depend on the magnitude of any tariff increase and the elasticity of demand for Greek goods in the face of such price hikes.

Indirect Effects Of Greece’s Trade Relations With The EU

In addition to the direct impact on Greek exports to the US, protectionist measures from the US could also have indirect effects on the Greek economy. This is due to the interconnected nature of Greece’s trade with the EU-27 and the EU’s trade with the US. In the period from January to November 2024, the EU-27 accounted for approximately 55.3% of Greek merchandise exports, or €25.4 billion. The US, in turn, represented 20.6% of EU-27 exports, totaling €490.1 billion (excluding intra-EU trade).

A potential tariff increase on EU-27 exports to the US could lead to:

1. A reduction in EU-27 exports of goods to the US.
2. A decrease in the income of EU-27 businesses.
3. Lower Greek exports of goods and services to the EU-27.

Furthermore, a portion of Greek exports to the EU-27 consists of intermediate goods used in the production of final products that the EU-27 exports to the US. This adds another layer of potential impact on Greek exports through participation in European value chains.

The shift from gasoline-powered cars to electric vehicles (EVs) in Greece has gained momentum in recent years, though challenges still persist. A telling sign of this transition is the noticeable drop in gasoline car sales in 2024. From 2023 to 2024, the share of gasoline vehicles in the Greek market dropped by 6.2 percentage points. In 2023, gasoline cars accounted for 41.9% of new registrations, but by 2024, that figure had fallen to 35.7%.

In contrast, hybrid vehicles—those combining an internal combustion engine and an electric motor—saw a significant surge in registrations, with their share increasing by 11.4 percentage points. Hybrids went from 30.9% of the market in 2023 to 42.3% in 2024. Hybrids have become the dominant choice for Greek consumers, offering a bridge between traditional gasoline-powered vehicles and fully electric ones. The key factor here is the lack of a robust charging infrastructure for electric vehicles in Greece, which makes it difficult for consumers to rely on electric cars for long-distance travel and ensures their practicality is limited.

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Plug-in hybrids (PHEVs) and fully electric vehicles (EVs) also gained ground in 2024, seeing an increase in registrations by 1.1 percentage points. Their share grew from 11.3% to 12.4%. Meanwhile, diesel cars, once a dominant presence in Greece, saw a steep decline, with their market share dropping by 6 percentage points, from 13.1% in 2023 to just 7.2% in 2024.

Smaller shares were seen for LPG vehicles, which held steady at 2.5% of the market, and for natural gas cars, which have virtually disappeared from the market, dropping from 0.3% in 2023 to 0% in 2024.

Looking at European Union data for the period from January to November 2024, gasoline cars accounted for 33.7% of new car registrations, hybrids made up 30.7%, plug-in and fully electric cars combined reached 20.4%, while diesel cars dropped to 12.1%. LPG and natural gas vehicles together held a modest 3.1% of the market share.

Toyota’s Triumph – Tesla’s Challenge

The rise of hybrid cars has undoubtedly benefited manufacturers like Toyota, which have continued to invest in hybrid technology alongside their electric vehicle offerings. Even Tesla, which has long focused exclusively on electric cars, is monitoring this shift closely. In a recent financial report, the company acknowledged that the growing demand for hybrids has somewhat hindered the adoption of fully electric cars.

A significant factor contributing to the preference for hybrid cars is the higher upfront cost of electric vehicles. Even with subsidies in place, electric cars tend to be more expensive for consumers. This price differential, combined with concerns about the limited availability of charging stations, has made hybrid cars an appealing option.

Why Electric Car Sales Aren’t Soaring Globally

The reasons behind the slower-than-expected growth of electric vehicle sales aren’t limited to Greece. A study conducted by McKinsey, the 2024 Mobility Consumer Pulse, revealed that a large portion of electric vehicle owners in the US (46%) would consider switching back to an internal combustion engine (ICE) car in their next purchase. The survey, which included 37,000 consumers across 15 countries (including Australia, the US, Brazil, China, France, Germany, and Japan), found that 29% of respondents worldwide were considering abandoning their EVs.

Australia, in particular, had the highest percentage of electric vehicle owners (50%) expressing a desire to switch back to gasoline cars, driven primarily by concerns about vehicle autonomy and the lack of public charging infrastructure.

In Greece, too, charging infrastructure remains one of the key barriers to widespread electric car adoption. As per the McKinsey survey, 35% of electric vehicle drivers considering a switch to internal combustion engine cars cited the lack of charging points as a primary reason. An additional 21% said they found the stress of searching for available charging stations intolerable.

The Road Ahead

Despite these challenges, the shift towards hybrid and electric cars in Greece and globally is undeniable. Hybrid vehicles, for now, remain the practical choice for many consumers, acting as a stepping stone to fully electric mobility. However, for electric vehicles to gain mainstream acceptance, critical infrastructure improvements, such as more charging stations and longer battery ranges, are essential.

The future of mobility is electric, but the path to full electrification may take longer than expected, with hybrid vehicles continuing to play a pivotal role in the transition.

One in ten businesses in Greece is a “zombie” company—unable to service loans, collectively holding a staggering €42.3 billion in bad debt. These businesses, accounting for 8.9% of the corporate sector, have long been a drag on the Greek economy, earning their unenviable label as zombie firms.

In its latest quarterly economic report, the Foundation for Economic and Industrial Research (IOBE) underscores the urgency of resolving these bad business loans. It highlights that these firms, by their nature, cannot restructure their debt independently, posing a perpetual obstacle to entrepreneurial growth.

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The Scale Of The Problem

The unresolved bad loans from these zombie firms include €8.9 billion still managed by commercial banks and an additional €33.4 billion transferred to loan servicers by the end of 2022. This combined figure of €42.3 billion remains a significant burden on the banking system, stifling its ability to finance new ventures and economic growth.

The origins of this debt crisis trace back to Greece’s prolonged economic downturn. Non-performing business loans peaked at €58 billion in 2015, representing 47% of all business loans. Although this figure has declined significantly—down by €49.1 billion to €8.9 billion in 2022—the remaining €42.3 billion underscores the persistent challenge. Since 2015, the “real” reduction in business-related bad loans totals €15.7 billion.

Zombie Companies By The Numbers

The phenomenon of zombie businesses—firms unable to meet loan or interest payments—escalated during the 2010-2018 economic crisis. Between 2005 and 2013, their share rose from 10% to 18.6% of all businesses, before receding to 8.9% by 2022.

Interestingly, while smaller businesses have historically shown higher rates of zombification, large firms also exhibited notable vulnerability during the 2005-2016 period. However, since 2013, the share of zombie companies has declined across all business sizes.

A Leading Indicator Of Financial Distress

According to IOBE, the prevalence of zombie businesses closely correlates with the rate of non-performing exposures (NPEs) on bank balance sheets. Notably, the rise in zombie companies typically preceded the increase in NPEs, suggesting that the zombie rate serves as a leading indicator of financial distress in the banking sector.

More recently, the decline in zombie businesses has outpaced the reduction in NPEs. This trend, IOBE explains, stems from the protracted liquidation of companies that have ceased operations but whose debts remain unresolved. These defunct firms are excluded from databases like ICAP, which track active businesses.

Moreover, the size of the average zombie company has shifted. Before the crisis, and again after 2017, zombie firms were generally smaller, reflecting a change in the economic landscape over time.

The Path Forward

The persistence of zombie companies is not merely a banking issue; it is a systemic challenge for the Greek economy. Resolving these bad loans swiftly and effectively is essential to unlocking entrepreneurial potential and enabling Greece’s financial sector to support new business ventures.

As the IOBE report makes clear, addressing this issue isn’t just about cleaning up balance sheets—it’s about paving the way for sustainable economic growth.

The European Banking Authority (EBA) has initiated a public consultation on draft Regulatory Technical Standards (RTS) aimed at defining the criteria for when crypto-asset service providers (CASPs) should appoint a central contact point to ensure compliance with the anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements of host EU member states.

This development stems from amendments made to Article 45(9) of Directive (EU) 2015/849 on 9 June 2023, which extended the scope of existing regulations to include CASPs. Previously, such standards applied only to payment service providers (PSPs) and electronic money institutions (EMIs), as per the original 2018 regulation.

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The updated draft RTS, intended to revise the Commission Delegated Regulation (EU) 2018/1108, addresses situations where CASPs operate in member states without establishing branches. Even in these cases, CASPs are required to adhere to local AML/CFT obligations, regardless of whether their local establishments are categorized as ‘obliged entities.’

“The draft RTS specifies the circumstances under which appointing a central contact point is necessary and outlines the responsibilities of such contact points,” the Cyprus Securities and Exchange Commission (CySEC) stated in a press release signed by Chairman Dr George Theocharides.

Stakeholders are encouraged to provide feedback by submitting comments through the EBA consultation page. The deadline for responses is 4 February 2025, and all contributions will be published by the EBA unless confidentiality is requested.

Dr. Theocharides urged regulated entities to participate in the consultation, emphasizing the importance of shaping standards that ensure effective compliance across the EU’s crypto landscape.

Cypriot MEPs have highlighted the importance of the Digital Services Act (DSA) in creating a safer digital environment across the European Union. However, during a debate at the European Parliament’s plenary session in Strasbourg, they also raised concerns about potential risks to freedom of expression and unintended uses of the legislation.

DISY and EPP MEP Loucas Fourlas praised the Act as a vital step towards robust digital governance, protecting citizens from illegal content, misinformation, and online threats. However, he pointed out that differing views among EU Member States and MEPs illustrate the bloc’s fragmented external policy, which could hinder cohesive action.

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Similarly, Michalis Hadjipantela, also from DISY and the EPP, welcomed the Act’s balanced approach, which aims to safeguard users from harmful content while ensuring that smaller businesses are not overburdened. He emphasized its role in fostering a transparent and secure digital ecosystem that supports competition, particularly for SMEs and startups.

From a different perspective, AKEL and Left MEP Giorgos Georgiou criticized the European Commission’s lack of action against the exploitative practices of Big Tech companies. He argued that without addressing the business models of these platforms, which thrive on extreme content, the Act cannot fully tackle hate speech and misinformation. Georgiou called for greater digital sovereignty in Europe, suggesting the development of alternative public platforms like Bluesky or Mastodon to counter Big Tech’s dominance.

DIKO and Progressive Alliance of Socialists and Democrats MEP Costas Mavrides underscored the nuanced nature of freedom of expression, noting that it must operate within the boundaries of EU legal frameworks. He dismissed criticism of restrictions on misinformation as hypocritical, especially from those who advocate for barriers against propaganda from authoritarian regimes.

Conversely, ELAM and European Conservatives and Reformists group MEP Geadis Geadi expressed concerns that the Act risks becoming a tool for censorship, threatening the very freedoms it seeks to protect. He argued for a reassessment of its implementation to ensure users’ rights remain intact.

Independent MEP Fidias Panayiotou echoed these concerns, citing recent accusations by Meta’s Mark Zuckerberg and Elon Musk, owner of platform X, that the EU is institutionalizing censorship. Panayiotou warned against unfairly censoring posts under the guise of misinformation and proposed inviting the tech leaders to the European Parliament for discussions on content moderation practices.

The debate was notable for its high level of engagement, with around 150 MEPs participating—nearly three times the usual attendance. A pilot system was also trialed, where speakers were announced during the session rather than in advance, resulting in lively exchanges and increased interaction through blue cards and petitions.

As the Digital Services Act moves forward, the challenge will lie in striking the right balance between ensuring online safety and safeguarding fundamental freedoms, a debate that will undoubtedly shape the digital future of Europe.