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

Cyprus Figures Reflect A Broad Revenue Base

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

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Energy Taxes Remain The Core Of Environmental Revenue

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

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

The Long-Term Share Is Shrinking

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

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

Revenue Rose In Most Member States

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

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

Cyprus is strengthening its position as one of Europe’s most advanced cashless economies, with card payments accounting for the highest share of non-cash transactions in the euro area during the second half of 2025, according to a report by the Central Bank of Cyprus (CBC).

Digital Payments Gain Further Ground

The volume of non-cash payments in Cyprus rose 8% year on year to 174 million transactions in the second half of 2025, while their total value increased 9% to €148 billion. Across the euro area, transaction volumes also grew 7% to 83 billion, although total value remained broadly unchanged at €118 trillion.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

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

Based on data from Cyprus-based credit institutions, payment institutions and electronic money institutions, the report highlights the continued shift in consumer and business payment habits.

Cards Dominate Transaction Volumes

Card payments remained the dominant payment method, accounting for 75% of all non-cash transactions in Cyprus, compared with 16% for credit transfers. This gave Cyprus the highest share of card payments relative to total non-cash transactions in the euro area during the second half of 2025.

According to the CBC, the trend reflects the convenience and speed of card payments, widespread contactless adoption, continued growth in e-commerce and broader merchant acceptance of electronic payments. Across the euro area, cards accounted for 57% of non-cash transaction volumes, while credit transfers represented 21%.

Online Spending Is Reshaping Payment Behaviour

Online card payments carried significantly higher average values than purchases made at physical points of sale, while the average online transaction in Cyprus ranked among the highest in the euro area, reflecting the growing role of e-commerce.

Although cards dominated transaction volumes, credit transfers accounted for 84% of the total value of non-cash payments. Their average value reached €4,500, underlining their continued use for larger business transactions.

Cheques Persist In Select Sectors

Cheque use continued to decline but still accounted for 6% of the total value of non-cash payments in Cyprus, with an average transaction value of €4,000.

“Despite their continued decline, cheques remained the second most important payment instrument in value terms,” the CBC said.

Their use remains concentrated in business-to-business and property transactions, while across the euro area cheques accounted for less than 1% of total non-cash payment value, with an average value of about €1,200.

Instant Payments Accelerate After Regulatory Push

The introduction of the EU Instant Payments Regulation has accelerated the adoption of instant payments. Over the past three years, the share of SEPA Instant Credit Transfers (SCT Inst) rose from less than 1% to almost 32% of all SEPA credit transfers by volume, while their share by value increased to around 9%.

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

The average instant payment amounted to €1,500, compared with €5,500 for a traditional SEPA credit transfer, suggesting the service is still used primarily for lower-value transactions. Further growth is expected as new initiatives, including SEPA Request-to-Pay, are rolled out.

Infrastructure And Cash Use Continue To Evolve

Cyprus remains one of Europe’s leaders in contactless payment infrastructure, with more than 73% of domestic ATMs supporting contactless transactions, compared with a euro area average of 38%.

Cash withdrawals from ATMs continued to decline, although the average amount withdrawn reached a record high. Over-the-counter withdrawals also fell as consumers increasingly shifted to automated and lower-cost banking channels.

The Next Phase: Digital Euro, Wero And The Fight Against Fraud

Looking ahead, the payments landscape is expected to evolve further through new technologies, including the proposed digital euro, which the Eurosystem aims to introduce by 2029, subject to legislation expected in 2026.

The report also highlights the European Payments Initiative (EPI) and its Wero digital wallet as part of efforts to create a pan-European payment solution and reduce Europe’s reliance on payment providers based outside the region.

At the same time, the shift to digital payments presents new challenges. Older people and residents of remote areas may face difficulties accessing digital services, while the growing use of electronic payments has been accompanied by rising payment fraud.

Improving digital literacy and consumer awareness will therefore remain a priority, with the Cyprus Financial Literacy and Education Committee (CyFLEC) expected to expand its financial education initiatives.

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

Cyprus Sets A Regional Benchmark

Overall, the report shows Cyprus performing strongly against the euro area across key payment indicators, including card usage, contactless infrastructure and instant payment adoption, while retaining distinctive features such as the continued use of cheques in business and real estate transactions.

Tax Debt Swells To €4.64 Billion

Cyprus’ tax debt has risen to €4.64 billion from €3.93 billion a year earlier, highlighting the scale of the challenge facing the Tax Department as it steps up collection efforts following the tax reform that came into force on January 1.

Of the total, €3.32 billion is classified as immediately payable debt, meaning it is due and can be pursued by the state without delay. The remaining €1.31 billion is considered difficult to recover and is not treated as immediately collectable.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Nearly €1 Billion In “Fresh” Arrears

Almost €979.4 million of the outstanding tax debt relates to liabilities less than one year old, accounting for 29.5% of immediately payable debt.

A further €992.6 million, or 29.9%, has been outstanding for between one and four years. The largest share, more than €1.32 billion, consists of debts that are over four years old.

Collections And Enforcement Underway

Before collection measures were applied, immediately payable debt stood at €3.32 billion, compared with €2.29 billion at the end of December 2024.

Of that amount, €901.5 million is already subject to enforcement action. This includes €325.9 million in cases before the courts and €575.4 million under administrative collection measures, including memos on immovable property and the seizure of funds from bank accounts.

The amount recovered through bank account seizures remains relatively small at €263,000. Following these measures, immediately payable debt still stands at €2.42 billion.

New Tools Strengthen The Tax Department

The tax reform has expanded the Tax Department’s enforcement powers in an effort to improve compliance and accelerate debt recovery.

Alongside memos and bank account seizures, authorities have begun sealing business premises for tax debts exceeding €20,000, as well as for failing to issue receipts or invoices. From 2027, the measure will also apply to taxpayers who fail to submit tax returns.

Criminal Cases And Payment Plans

The department is also pursuing criminal prosecutions in cases involving unpaid withheld taxes, including VAT, PAYE and the Special Defence Contribution, as well as the non-submission of tax returns.

These proceedings may result in penalties, settlement agreements or structured repayment plans. In some cases, taxpayers comply by filing overdue returns or agreeing to repay outstanding liabilities. Some debts have also been included in the framework for settling overdue tax liabilities, although certain repayment agreements have yet to be completed.

Debt Age Points To A Structural Problem

According to Tax Department data, the average age of immediately payable debt increased to 80.3 months, or 6.7 years, by the end of December 2025, up from 58.3 months a year earlier.

Officials caution that the figure is not fully representative because it includes substantial long-standing arrears that are now considered unlikely to be recovered. The figures illustrate the scale of Cyprus’ tax arrears challenge, with a significant share of outstanding debt dating back several years despite ongoing collection efforts and expanded enforcement powers.

Cyprus is not the cheapest holiday destination in the Mediterranean, but it remains more affordable than many of its best-known rivals on two of the costs travellers notice first: hotel accommodation and dining out.

A Competitive Position In A Costly Region

Latest Eurostat data puts Cyprus’s restaurant and accommodation price index at 85.2, against an EU average of 100. That places the island slightly below Spain and Greece, while Slovenia, Croatia, Malta, Italy and France all rank as more expensive destinations.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Portugal remains the standout value destination in the western Mediterranean, while Albania and Montenegro offer even lower prices further east.

The wider European picture follows a similar pattern. Bulgaria, Romania, Serbia, Bosnia and Herzegovina, and North Macedonia all rank below Cyprus for both overall consumer prices and hospitality costs. Germany, Austria, Belgium, the Netherlands and the Nordic countries are considerably more expensive.

The Broader Cost Of A Holiday

Looking beyond hotels and restaurants, Cyprus also remains cheaper than the EU average across the broader household basket, which includes groceries, clothing, transport and services. Overall prices were 10.8% below the bloc-wide benchmark. The island was less expensive than Spain, Malta, Italy and France, although Greece, Portugal and Croatia recorded even lower overall price levels.

A separate Euronews analysis reinforced that regional picture. It found that North Macedonia, Bosnia and Herzegovina, Romania, Bulgaria, Montenegro, Serbia and Albania were among Europe’s lowest-priced countries, while Iceland and Switzerland ranked at the opposite end of the scale, alongside several northern and western European economies.

Food bought in shops tells a slightly different story. On that measure, Cyprus sits almost exactly on the European average. Greece, Croatia and Malta all recorded higher grocery prices, while Spain offered slightly better value. The comparison highlights an important point for travellers: the cost of a holiday depends largely on how it is structured. A self-catering family, a couple dining out every evening and an all-inclusive guest are likely to have very different spending experiences in the same destination.

Where Holiday Bills Diverge Most

Some everyday purchases reveal even greater differences. According to the Euronews holiday comparison, alcoholic drinks in Greece were priced 54% above the EU average, while Croatia was more than one-third above the benchmark. Italy was 18.1% below the EU average and Spain 9.9% lower, while France and Portugal remained much closer to the European average.

Soft drinks also varied considerably. Italy recorded the lowest prices in the comparison, at 18.2% below the EU average, while Croatia was 33.5% above it. Seafood prices were more tightly grouped, ranging from 4.6% below the EU average in Portugal to 12.7% above it in Greece.

Transport costs showed a different pattern. France was the only country in the comparison where public transport prices exceeded the EU average. Portugal, Spain and Croatia were around 20% cheaper, while Greece remained just below the European benchmark.

Borrowing became more expensive for euro area businesses in the second quarter of 2026, while smaller firms found it increasingly difficult to access credit, according to the European Central Bank’s latest Survey on the Access to Finance of Enterprises (SAFE).

Higher interest rates, tighter lending standards and modestly rising financing needs continued to weigh on businesses, even as inflation expectations remained broadly stable. The survey also suggests companies are adapting to a more challenging environment by relying on internal funding, reshaping supply chains and becoming more selective about investment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Borrowing Costs Continue To Climb

Businesses reported a further tightening in bank lending conditions, driven primarily by higher borrowing costs. A net 42% of firms said interest rates on bank loans had increased, up sharply from 26% in the previous quarter. Companies also continued to report higher fees, commissions and collateral requirements, although both measures eased slightly compared with the first quarter.

Demand for financing edged higher, with a net 2% of firms reporting increased demand for bank loans. Overall access to credit, however, remained broadly unchanged.

SMEs Feel The Pressure Most

Beneath the stable headline figures, the survey revealed a widening gap between large companies and smaller businesses.

Large firms reported improving access to bank loans, posting a net positive balance of 4%. SMEs, by contrast, saw financing conditions deteriorate further, with a net balance of minus 4%.

That divergence pushed the bank loan financing gap slightly wider, highlighting that tighter monetary conditions continue to affect smaller businesses more severely than larger firms.

Economic Uncertainty Still Weighs On Credit

Although businesses became slightly less pessimistic about future financing conditions, the broader economic outlook remains the biggest obstacle to accessing credit.

A net 29% of firms identified the general economic environment as a limiting factor, up from 26% in the previous survey. Businesses also became somewhat more cautious about their own prospects, with more firms expecting weaker sales and profitability to weigh on future access to external finance.

At the same time, banks appeared marginally more willing to lend, with the share of firms reporting improved bank willingness to provide credit edging higher.

Inflation Pressures Continue To Ease

The survey points to gradually easing price pressures across the euro area. Businesses lowered expectations for selling prices, non-labour input costs and wage growth over the next 12 months. Longer-term inflation expectations, however, remained broadly stable, suggesting firms continue to expect inflation to stay close to current levels over the coming years.

Companies Adapt To Geopolitical Risks

Rather than pulling back from international markets, many businesses are adjusting their operations to manage geopolitical uncertainty.

More than one-third of firms said they are seeking alternative suppliers, while nearly one-third are looking for new energy providers. Others reported investing in energy efficiency, increasing inventories and reviewing insurance or trade finance arrangements to strengthen resilience.

Large companies were generally better positioned than SMEs to implement these measures, reflecting their greater ability to diversify supply chains and absorb external shocks.

AI Investment Relies Mostly On Internal Funding

When it comes to artificial intelligence, businesses overwhelmingly expect to finance investment with their own resources.

Nearly three-quarters of firms said they plan to rely on internal funds, while only a minority expect to use bank loans, grants, leasing or equity financing. Debt securities remain the least popular source of funding for AI-related investment.

A More Cautious Business Environment

The ECB’s latest SAFE survey, conducted between May 21 and June 26 among 5,087 euro area firms, paints a picture of businesses operating in an environment where credit remains expensive despite signs that inflation pressures are easing.

Smaller firms continue to face the greatest financing challenges, while companies across the euro area are increasingly relying on their own balance sheets to fund investment and adapting their operations to a more uncertain economic and geopolitical landscape.

Banks in Cyprus were among the slowest in the euro area to raise deposit rates after the European Central Bank increased interest rates, according to a new ECB working paper examining deposit pricing between 2007 and 2024.

The findings place Cyprus alongside several southern European economies where savers benefited less from higher interest rates than customers in northern Europe, highlighting significant differences in how ECB monetary policy reached households across the currency union.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Deposit Rates Did Not Rise Equally Across Europe

The researchers found that banks in southern euro area countries generally passed on a smaller share of ECB rate increases to depositors than their counterparts in the north.

While monetary policy is set centrally by the ECB, its effects on savers varied widely between countries. The paper concludes that those differences were driven less by banks themselves than by the behaviour of depositors.

Why Banks Could Keep Deposit Rates Lower

According to the study, the biggest shift came after the ECB began raising interest rates in 2022.

Customers most sensitive to higher returns increasingly moved their savings into term deposits, money market funds and other interest-bearing products. Those who kept their money in overnight accounts were generally less likely to switch providers or actively seek higher rates, giving banks greater flexibility in setting deposit prices.

The researchers argue that this change in depositor behaviour played a larger role than differences in banking competition.

The Legacy Of Negative Interest Rates

Years of negative ECB interest rates also shaped how households and businesses managed their savings.

With few attractive alternatives available between 2014 and 2022, most depositors kept money in overnight accounts. Once rates started rising, wealthier households and businesses, which typically respond more quickly to changes in returns, shifted into higher-yield savings products.

Businesses proved more responsive to interest rate changes than households. Among consumers, savers in higher-income northern European countries were also more likely to move funds in search of better returns than those in lower-income southern economies, including Cyprus.

Banks Retained Strong Pricing Power

The study suggests banks maintained substantial pricing power throughout the rate-hiking cycle, allowing them to keep much of the benefit from higher interest rates rather than passing it on to depositors.

Researchers estimate that if all savers had been equally willing to move their money in search of better returns, overnight deposit rates would have been significantly higher, particularly during the ECB’s 2022–2024 tightening cycle.

That finding reinforces the paper’s central conclusion: depositor behaviour, rather than limited banking competition, was the main reason deposit rates rose more slowly than policy rates.

What It Means For Cyprus

For Cyprus, the findings illustrate why deposit rates remained relatively subdued despite one of the fastest monetary tightening cycles in the ECB’s history.

More broadly, the study suggests that the effectiveness of monetary policy depends not only on central bank decisions but also on how willing households and businesses are to actively manage their savings. Improving financial literacy and increasing awareness of alternative savings products, the authors argue, could strengthen competition for deposits and improve the transmission of future interest-rate changes.

Cyprus Emerges As A Demographic Outlier In Europe

Cyprus recorded one of the fastest-growing populations in the European Union in 2025, according to the latest Eurostat data. With population growth of 13.7 per 1,000 inhabitants, the island ranked second among the bloc’s 27 member states, behind only Malta (24.1) and ahead of Luxembourg (13.1).

The figures set Cyprus apart at a time when much of Europe is facing ageing populations, declining birth rates and mounting labour shortages.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Different Demographic Story

Population growth across the EU remained modest in 2025, increasing by just 1.6 per 1,000 people. The picture, however, was far from uniform. Sixteen member states recorded population gains, while eleven experienced declines.

Malta, Cyprus and Luxembourg posted the strongest growth rates, while Latvia (-8.3), Estonia (-6.8) and Hungary (-5.4) recorded the steepest population losses.

As of January 1, 2026, Cyprus had a population of 996,600. While one of the EU’s smallest member states, it continues to outperform many larger economies on demographic growth.

Growth Driven By Births And Migration

Cyprus stands out because its population is expanding through both natural increase and migration, a combination that has become increasingly uncommon across Europe.

The country was one of only six EU member states where births exceeded deaths in 2025, joining Denmark, Ireland, Luxembourg, Malta and Sweden. Across the EU as a whole, the opposite was true: 4.81 million deaths were recorded against 3.46 million births, leaving the bloc with a natural population decline of roughly 1.35 million people.

Migration more than compensated for that shortfall. Net migration added around 2.05 million people across the EU in 2025, reinforcing its role as the bloc’s primary source of population growth.

Cyprus ranked among the strongest performers here as well. Net migration reached 11.3 people per 1,000 inhabitants, trailing only Malta (23.9) and Spain (11.8).

Why The Numbers Matter

Demographic trends increasingly shape economic performance. Population growth influences labour supply, consumer demand and the long-term sustainability of pension systems and public finances.

For most European countries, migration has become essential to offset declining birth rates. Cyprus is unusual because it combines strong inward migration with positive natural population growth, giving it a demographic profile that few EU members currently share.

Whether that advantage translates into stronger long-term economic performance will depend on how effectively the country integrates new residents, expands its workforce and converts population growth into higher productivity.

As Europe searches for ways to sustain growth despite an ageing population, Cyprus offers an early example of how demographic resilience can become an economic advantage.

Meta is testing a new AI-powered storytelling app, StoryKit, that generates personalized children’s books with custom characters, settings, lessons and music. The App Store description promises parents they “don’t need to write a single word.”

What StoryKit Does

First reported by 9to5Mac and later confirmed by Meta to TechCrunch, StoryKit is being tested in select countries to gauge consumer interest. The app allows adults to create personalized storybooks using AI while limiting access to users aged 18 and older. According to Meta, it includes AI safety filters and does not offer social features.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Users can build a character from scratch or upload a photo of a favorite toy or person, describe the story’s setting and choose a lesson. The app then generates a custom story designed to incorporate themes such as kindness, courage or empathy.

Another Step In Meta’s Consumer AI Strategy

StoryKit is a far less controversial product than some of Meta’s previous AI launches, including image-generation and synthetic media tools that have drawn criticism over authenticity and misuse.

At the same time, the app reflects a broader shift in consumer AI. Rather than focusing solely on productivity, companies are increasingly using generative AI to automate creative and everyday activities, from writing emails and editing photos to planning vacations and now creating children’s stories.

AI Moves Into Everyday Family Life

Storytelling has long been one of the simplest forms of creativity, requiring little more than imagination. For many families, bedtime stories are not just entertainment but a way to build routines, encourage conversation and pass on values.

AI changes that experience by making personalization almost effortless. Parents can generate stories tailored to a child’s interests or a specific lesson in seconds, making the technology particularly appealing when time or energy is limited.

The question is whether convenience changes the role of the activity itself. If AI generates the characters, plot and moral, the parent’s role shifts from storyteller to editor or curator. For some families, that may be a welcome trade-off. Others may see it as reducing one of the few everyday activities built around shared creativity rather than efficiency.

A Growing AI Category

StoryKit also highlights how competition in generative AI is moving beyond workplace software into family-oriented consumer products. Companies are increasingly looking for everyday use cases that encourage frequent engagement rather than occasional productivity gains.

That shift could make AI a more constant presence in daily life, extending its role from helping people work to shaping how they learn, create and spend time together.

The Bigger Question

Whether StoryKit succeeds commercially will likely depend on how parents view AI’s place in family life. Some may embrace it as a creative assistant that sparks new ideas, while others may prefer storytelling to remain a fully human activity.

More broadly, the app reflects the next stage of consumer AI, where the debate is no longer whether the technology can generate content, but which everyday experiences people are willing to delegate to it.

While investors have spent much of the past year chasing semiconductor companies at the center of the AI boom, some of the market’s strongest performers have come from unexpected corners of Japan’s industrial economy.

Toto, Nittobo and Ajinomoto are better known for toilets, glass fiber and seasoning than advanced computing. Yet each has carved out a critical role in the semiconductor supply chain by applying decades of manufacturing expertise to AI infrastructure. Their shares have climbed 78%, 63% and 61%, respectively, this year as demand for semiconductor equipment and advanced chip packaging continues to grow.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

From Legacy Businesses To AI Infrastructure

Rather than reinventing themselves, all three companies have adapted long-established materials science and manufacturing capabilities to serve the AI industry.

Toto supplies ceramic electrostatic chucks used in semiconductor production equipment. Nittobo manufactures advanced glass fiber for semiconductor package substrates, while Ajinomoto produces ABF, an insulating film essential for packaging high-performance chips used in data centers and AI applications.

The AI boom is driving demand throughout the semiconductor supply chain, creating new growth opportunities for businesses once considered niche parts of much larger industrial groups.

Toto: A Ceramics Business Finding New Scale

Toto remains best known for its housing and bathroom products, but its advanced ceramics division has become an increasingly important source of earnings. The business reported a 34% increase in annual revenue and a 42% rise in operating profit for the fiscal year ended March 31, offsetting weaker results in the company’s core housing operations.

The company entered the semiconductor industry in 1988, when it began producing electrostatic chucks that hold silicon wafers in place during chip manufacturing. The components help improve production yields for advanced semiconductors, positioning Toto to benefit from investment in AI, data centers, IoT and digital transformation.

Despite the rapid growth of its ceramics business, Toto says it has no plans to shift away from its traditional operations. Instead, it views its housing business as a stable foundation while expanding its higher-growth semiconductor business.

Nittobo: Electronic Materials Become The Growth Engine

Electronic materials have become central to Nittobo’s growth strategy. Its T-glass product, introduced in 1984 for printed circuit boards and electronic components, has benefited from rising demand for AI hardware.

The company says AI-related semiconductor demand is shaping investment, research and hiring decisions. That strategy has translated into stronger results: net sales in the electronic materials segment rose 20.4% year on year, while operating profit increased 39.7%.

According to CNBC calculations, the segment generated about 91% of Nittobo’s total net sales growth in the latest fiscal year. Operating profit increased by 5.5 billion yen, or roughly $34 million, exceeding the company’s overall operating profit growth. Nittobo expects demand for specialty glass used in servers, networking equipment and semiconductor package substrates to remain strong and plans to expand production capacity.

The company continues to develop new industrial applications for its traditional glass-fiber business, suggesting AI is strengthening rather than replacing its broader manufacturing portfolio.

Ajinomoto: An ABF Advantage

Ajinomoto remains best known as a food company, but one of its most valuable technologies sits far beyond the supermarket aisle.

Its ABF (Ajinomoto Build-up Film) is a semiconductor insulation material originally developed from a byproduct of the company’s MSG manufacturing process. Introduced commercially in 1999, it is now widely used in packaging high-performance processors.

As semiconductor packaging becomes more complex, demand for ABF has continued to grow. Ajinomoto expects AI, 5G and other advanced technologies to support further expansion.

Although the company does not report ABF as a standalone business, its fiscal 2025 results highlight its growing importance. The Healthcare and Others division, which includes ABF, posted revenue growth of about 4% and a 45.1% increase in business profit, driven by stronger electronic materials sales. The segment accounted for more than one-third of total company profit and surpassed the frozen food business in both revenue and profit.

Ajinomoto expects continued expansion of its ABF business as part of its broader AminoScience strategy, where the company aims to balance industrial and food operations over the long term.

The Broader Lesson For Investors

The AI boom is extending well beyond chip designers and cloud providers. As semiconductor supply chains become more specialized, companies with decades of expertise in ceramics, specialty glass and advanced materials are finding new sources of growth.

For investors, some of the strongest AI opportunities may lie in businesses that were never considered technology companies in the first place. Japan’s industrial sector shows that long-established manufacturing expertise can become a competitive advantage in the next generation of computing.

Governments around the world are increasingly moving to restrict children’s access to social media, shifting the debate from online safety to age-based access itself.

Australia became the first country to implement a nationwide ban for users under 16, and a growing number of governments have since introduced similar laws, draft legislation or policy proposals. France is the latest to join the list, highlighting how quickly age-based restrictions are gaining political support.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Why Governments Are Acting

Supporters argue that social media exposes children to cyberbullying, addictive platform design, mental health risks and online predators. They say governments must intervene where parental controls and platform safeguards have failed.

Critics, including Amnesty Tech, argue that blanket bans fail to reflect how young people use digital services while raising concerns over privacy, surveillance and intrusive age verification.

Despite those objections, more governments continue to pursue similar policies. Below is a country-by-country overview of where social media bans for minors have been adopted or are under serious consideration.

Australia

Australia became the first country to ban social media for children under 16 in December 2025. The restriction covers Facebook, Instagram, Snapchat, Threads, TikTok, X, YouTube, Reddit, Twitch and Kick, but excludes WhatsApp and YouTube Kids.

Platforms must take active steps to prevent underage access or face fines of up to A$49.5 million (about US$34.4 million). The government has also said self-declared birthdays will not be sufficient, requiring platforms to use multiple age-verification methods.

Austria

Austria plans to ban social media for children under 14, with draft legislation expected to be finalized by June.

Canada

Canada introduced a digital safety bill in early June that would ban social media for children under 16. Platforms could be exempt if they demonstrate adequate protections for young users. Officials say the legislation could take up to a year to pass.

Denmark

Denmark is preparing to ban social media for children under 15 after securing cross-party political backing in late 2025.

The measure could become law as early as mid-2026. The government is also developing an age-verification app to help enforce the restrictions.

France

France passed a law on July 21 banning social media access for anyone under 15. The measure could take effect as early as September 1.

It also extends restrictions on mobile phone use to high schools, building on existing rules covering primary and middle schools.

Germany

Conservatives led by Chancellor Friedrich Merz have proposed banning children under 16 from social media, although opposition from coalition partners has cast doubt on whether the proposal will move forward.

Greece

Greek Prime Minister Kyriakos Mitsotakis announced in April that Greece will ban social media access for children under 15 beginning in January 2027.

He said the policy is intended to address rising anxiety, sleep problems and the addictive design of social media platforms.

Indonesia

Indonesia announced in early March that it plans to ban children under 16 from using social media and other widely used online platforms, including YouTube, TikTok, Facebook, Instagram, Threads, X, Bigo Live and Roblox.

Malaysia

Malaysia said in November 2025 that it plans to ban social media for children under 16, with implementation expected this year.

Poland

Poland’s ruling party is drafting legislation that would ban children under 15 from using social media.

Slovenia

Slovenia is preparing legislation to prohibit children under 15 from accessing social media. The proposal would apply to platforms where users share content, including TikTok, Snapchat and Instagram.

Spain

Spain plans to ban social media for children under 16, although the proposal still requires parliamentary approval.

The government is also seeking legislation that would hold social media executives personally liable for hate speech published on their platforms.

Turkey

Turkey’s parliament passed a bill in April restricting social media access for children under 15. The legislation now awaits approval from President Recep Tayyip Erdogan.

United Kingdom

Prime Minister Keir Starmer announced on June 15 that the U.K. plans to ban social media use for children under 16.

The proposal would apply to Snapchat, TikTok, YouTube, Instagram, Facebook and X, while excluding messaging services such as WhatsApp and Signal.

The government also plans restrictions on AI tools, including romantic companion chatbots, limiting access to users aged 18 and older.

While experts have questioned whether such a ban can be effectively enforced, Starmer has said he believes it is achievable. The government expects the policy could take effect by spring 2027.

The Bigger Policy Question

Australia remains the only country to have fully implemented a nationwide social media ban for minors, while most others are still drafting legislation or awaiting parliamentary approval.

Whether these measures reduce harm to young users will depend largely on age-verification technology, platform compliance and how governments balance child safety with privacy concerns.