The Cabinet approved the draft 2025 Fiscal Programme of the Republic, Government Spokesperson Konstantinos Letymbiotis has said, noting that growth this year is expected to reach 3.7%.

In statements after the 9 October meeting of the Cabinet, the Spokesman said that the Minister of Finance will submit the Fiscal Programme to the General Directorate of Economic and Financial Affairs of the European Commission.

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He said that this is the second evaluation that takes place in the autumn of each year on the basis of plans and budget programmes submitted by the countries by October 15 each year. The evaluation, he said, concerns the revised, expected fiscal results for the current year and the revised forecasts, mainly for the next year, on the basis of the government’s budget plan for the coming year.

The Spokesperson said that the EU evaluates the plans no later than November 30 each year. Based on the main macroeconomic scenario included in the draft fiscal program 2025, he said, the Cypriot economy is expected to grow at a rate of 3.7% in 2024 in real terms.

Inflation, based on the harmonized index of consumer prices, is expected to be 2.2% in 2024 and fall further to 2% in 2025-2027, he added.

Letymbiotis noted that the fiscal balance of the general government in 2024 is expected to have a surplus of 3.9% as a percentage of GDP.

Concluding, he said that public debt for 2024 is estimated to be 68.9% of GDP, compared to 77.4% of GDP at the end of the previous year.

Petrol/diesel oil was the main energy source in road transport in the EU in 2022, while Cyprus had the largest share of use of motor petrol among member states, according to data released by Eurostat.

Petrol/ diesel oil and motor petrol remained the leading energy sources in road transport in 2022, according to the statistics.

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In the EU, petrol/diesel oil (excluding the biofuel portion) was the main source of energy in road transport in 2022, with a 65% share. Motor petrol (excluding the biofuel portion) followed at 25%, ahead of renewables and biofuels (6%), liquefied petroleum gases (2%), natural gas (1%) and electricity (0.3%).

In most EU countries, petrol/diesel oil was the primary source of energy for road transport, though there were noticeable differences between the countries.

The highest shares were reported in Latvia (80%) and Lithuania (76%), followed by Ireland, Austria, and Spain, each at 74%. In contrast, the lowest shares were recorded in Sweden (45%), Cyprus (46%) and the Netherlands (48%).

The share of motor petrol was highest in Cyprus (50%), the Netherlands (42%), and Malta (36%). The lowest shares were reported in Lithuania (13%), Latvia (14%) and Bulgaria (15%).

Energy consumption in transport at pre-pandemic levels

According to the statistics, in 2022 transport activities accounted for 31% of the final energy consumption in the EU, which made it the highest consumer of final energy, ahead of households (27%) and industry (25%).

Road transport was the largest energy consumer, responsible 74% of all energy consumption in transport, or 10,996 petajoules (PJ). Water transport accounted for 13% of all energy consumed in transport (1,935 PJ), followed by air (11%; 1,700 PJ) and rail transport (1%; 214 PJ).

Compared with 2021, air transport recorded the highest increase in energy consumption, with a striking 57% rise. In 2022, energy consumption levels in air transport were approaching the pre-pandemic figures, following sharp declines in 2020 and 2021.

Energy consumption also increased, if not as rapidly in road transport, which also approached 2019 levels.

Dr. Demis Hassabis, a renowned British-Cypriot artificial intelligence (AI) researcher and co-founder of DeepMind, has been awarded the Nobel Prize in Chemistry for his revolutionary work in using AI to advance the understanding of chemical processes. His contributions have transformed the fields of chemistry and molecular biology, propelling scientific discovery into new realms of possibility.

Hassabis’ award marks a significant milestone in the intersection of AI and the natural sciences. By leveraging AI to tackle complex scientific challenges, he has helped scientists understand the intricate molecular structures and interactions that underpin biological systems and chemical reactions. His work has not only provided deep insights into the fundamental processes of life but also paved the way for innovative approaches to drug discovery, materials science, and renewable energy solutions.

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One of the key breakthroughs that earned Hassabis this prestigious recognition is DeepMind’s AlphaFold, an AI system designed to predict the 3D structures of proteins. Understanding protein folding is one of the most complex problems in molecular biology, and accurate predictions of these structures are crucial for numerous applications, including the development of new medications and therapies. Before AlphaFold, scientists relied on time-consuming and expensive methods to determine protein structures. Hassabis’ innovation has significantly accelerated this process, offering a more efficient and cost-effective solution that has already had a profound impact on research worldwide.

AlphaFold’s ability to predict the structure of nearly every known protein has been hailed as one of the most important scientific achievements in recent years. The system’s accuracy and speed have opened up new opportunities for scientists, enabling them to conduct research that was previously impossible or too resource-intensive. From addressing global health challenges like antibiotic resistance to advancing personalised medicine, the implications of AlphaFold’s success are far-reaching and transformative.

Dr. Hassabis’ achievement also highlights the growing role of AI in scientific discovery. Traditionally, the Nobel Prize in Chemistry has been awarded for advancements in laboratory-based research, but Hassabis’ work demonstrates the potential of AI as a powerful tool for solving some of the most pressing challenges in the natural sciences. This recognition by the Nobel Committee underscores the importance of interdisciplinary collaboration, where AI, computer science, and traditional scientific disciplines converge to create groundbreaking innovations.

Beyond his work in chemistry, Hassabis has been a key figure in advancing AI research and its applications across various fields. As the co-founder of DeepMind, he has driven the development of AI systems that can not only solve scientific problems but also tackle challenges in areas such as healthcare, gaming, and climate change. His visionary leadership has positioned DeepMind as a global leader in AI research and innovation, influencing industries and academic institutions alike.

A discovery in the field of proteins earned the Nobel Prize in Chemistry. The discovery solves one of the most difficult problems in biology and could be used to create drugs and vaccines.  Honorees were David Baker and Demis Hassabis. Both work for London-based research lab Google DeepMind, a division of Google. Professor John Jumper also received part of the award.

KEY FACTS

• David Baker, Demis Hassabis and John Jumper have been awarded the 2024 Nobel Prize in Chemistry for their scientists’ research into the structure of proteins. The prize is worth SEK 11 million ($1.1 million).
• Demis Hassabis is one of the founders of DeepMind. John Jumper led the development of the protein prediction software AlphaFold, and David Baker is a professor at the University of Washington.
• Half of the prize was awarded to Baker “for computational protein design,” and the other half was split between Hassabis and Jumper “for protein structure prediction,” the academy said.
• Proteins are the building blocks of life and are found in every cell of the human body. The discovery solves one of the most difficult problems in biology and could be used to create drugs and vaccines. 
• This is the third prize awarded this year. Yesterday, the Nobel laureates in physics were announced, and the day before that, discoveries in medicine were honored.

IMPORTANT QUOTE

“The 2024 Nobel Prize in Chemistry is dedicated to proteins – the ingenious chemical weapons of life. David Baker has achieved the almost impossible feat of creating entirely new types of proteins. Demis Hassabis and John Jumper have developed an artificial intelligence model to solve a 50-year-old problem: predicting the complex structures of proteins. These discoveries have enormous potential,” the Nobel Committee said.

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KEY STORY 

The Nobel Prize for Medicine was awarded on Monday. The prize went to the discoverers of micro RNA and its role in gene regulation. Yesterday, the distinction for physics went to scientists who made discoveries that give more opportunities to machine learning. John Hopfield of Princeton University and Geoffrey Hinton of the University of Toronto were honored for their pioneering work on artificial neural networks, which underpin much of modern artificial intelligence.

Oil prices have been on a sharp upward trajectory in recent months, driven by a confluence of factors that are reshaping the global energy market. As the price of crude continues to rise, analysts have identified three primary factors fueling the rally: OPEC+ production cuts, geopolitical tensions, and rising global demand. These forces are creating a perfect storm, with significant implications for the global economy, energy security, and inflation.

1. OPEC+ Production Cuts

One of the most influential factors in the recent surge in oil prices has been the decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to implement further production cuts. To stabilise global oil markets and support higher prices, OPEC+ has strategically reduced output. These cuts have tightened global supply, causing prices to climb as demand outpaces available production. Saudi Arabia, the world’s largest oil exporter, and Russia, a key player in the alliance, have been at the forefront of these efforts, showing little indication of reversing course in the near future.

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The impact of these cuts has been immediate and profound, with oil prices reaching their highest levels in nearly a year. By limiting the availability of crude, OPEC+ has exerted significant control over the market, ensuring that prices remain elevated even as other global uncertainties persist. For countries heavily reliant on oil imports, this rise in prices is contributing to inflationary pressures, particularly in energy-dependent industries.

2. Geopolitical Tensions

Geopolitical risks have also played a crucial role in the recent oil price rally. Conflicts and instability in key oil-producing regions, such as the Middle East and Russia, have heightened concerns about the security of global oil supplies. The ongoing war in Ukraine continues to disrupt global trade routes and has led to sanctions on Russian oil exports, further reducing available supplies in Europe and beyond.

Additionally, tensions in the Middle East, particularly in countries like Iran and Saudi Arabia, are contributing to market volatility. Any escalation in these areas could lead to supply disruptions, further tightening the market and driving prices higher. For investors and businesses alike, the uncertainty surrounding geopolitical developments is adding a risk premium to oil prices, making energy markets increasingly difficult to predict.

3. Rising Global Demand

While supply constraints have dominated headlines, rising global demand for oil is equally responsible for the current price rally. As economies recover from the pandemic and industrial activity picks up, the energy demand has surged. This is particularly true in emerging markets, where economic growth is driving increased consumption of fuel for transportation, manufacturing, and electricity generation.

China, the world’s second-largest oil consumer, has seen a resurgence in demand as it navigates its economic recovery, further straining global supplies. In addition, seasonal factors such as the Northern Hemisphere’s winter months typically lead to increased demand for heating oil and fuel, putting further pressure on prices.

The Cyprus Securities and Exchange Commission (CySEC) has placed a significant focus this year on the financial education of children and adolescents as one of two key pillars of its activities for the 2024 World Investor Week.

Taking place from 7 to 14 October, World Investor Week is a week-long, global campaign promoted by the International Organisation of Securities Commissions (IOSCO). The second pillar also involves safeguarding and educating young people, with a specific focus on the social media realm and the growing impact of financial influencers, or “finfluencers.”

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As part of this educational initiative, CySEC’s activities include delivering lectures and distributing educational material in schools and universities in collaboration with the Ministry of Education, Sports, and Youth. CySEC is also engaging with parent associations in schools and has developed a series of lectures specifically for parents. A key element of this effort is the publication of a Parents’ Guide to Financial Education, which offers valuable information and practical advice to help parents understand and support their children with financial literacy.

The Parents’ Guide also contains a dedicated section for adolescents, who often manage larger sums of money, face more external influences and encounter greater risks, particularly in the online space.

Commenting on CySEC’s new initiative to support young people, CySEC Chairman, Dr. George Theocharides, emphasised that childhood and adolescence are critical periods for shaping financial behaviours and attitudes. He said, “Parents are essentially the first and most important teachers when it comes to imparting fundamental knowledge on managing money and integrating financial learning into everyday life. They can do this by discussing family financial matters with their children, using easy and enjoyable methods of learning in daily household activities, and, most importantly, by setting a good example.”

The Parents’ Guide highlights the advantages that financial literacy offers to children, including:

CySEC’s Officer A, in charge of the Financial Education Programme, Elena Karkoti, encouraged parents to engage in conversations with their children about family financial matters, such as income, salary deductions, fixed expenses (utility bills, loan payments, rent), and what the family budget entails. She said, “Children learn a lot by observing. When parents demonstrate good financial habits, such as budgeting, saving, and responsible spending, children are more likely to adopt these practices in their own lives.”

CySEC invites all interested parties to actively participate with their own initiatives during World Investor Week. More information about CySEC’s initiatives can be found on the Financial Education Portal.

Companies lose more than 5 per cent of their revenue each year to fraud, according to data from an international study by the Association of Certified Fraud Examiners (ACFE), presented by Chrystalla Kazara, vice president and director of training for the organization’s Cyprus office.

KEY FACTS

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• The study examined 1,921 real-life cases of job fraud from 138 countries.
• Kazara pointed out that the losses of companies from fraud annually amount to more than 3.1 billion dollars.
• She added that fraud cases are divided into three categories – embezzlement, corruption and misuse of financial statements. Embezzlement was the most common category, accounting for 89 % of cases in the Association of Certified Fraud Examiners survey, Kazara explained.
• According to her, during the coronavirus pandemic, there was a serious increase in losses from fraud by 24 %, with the biggest jump being marked by cases of corruption – 33 %, and in second place was fraud with financial statements. According to her, this is due to the compromise of the companies’ internal control systems.

TANGENT

Kazara pointed out that specifically for Eastern Europe, the most serious problems are due to corruption, which refers to 71 % of the cases in the study by the Association of Certified Fraud Examiners.

The study also indicates that more than half of the frauds are due to company employees. Kazara emphasized that if employees were trained in how to act on fraud, it would prevent a large number of cases.

Google needs to revamp its app store to give more options for Android users to transact through third-party apps directly. The decision comes against the background of the precedent set by the war between Epic Games – the creator of Fortnite – and Apple.

KEY FACTS

• Federal Judge Jaime Donato ruled that Google must open its app store to competitors and give Android users more choice when downloading them.
• In practice, this means that Google has to change the way it manages Google Play in the next three years.
• The company cannot force developers to use Google Play’s billing system while allowing them to notify their users of alternative payment methods.
• The court ordered Epic Games and Google to establish a three-person technical committee to implement and monitor the court order.
• The order will take effect from November 1.
• Following the decision, Alphabet shares closed down 2.5%, currently trading at $164.39.
• In response to the decision, Google said it would file an appeal, arguing that the changes would “undermine Android’s ability to compete with Apple’s iOS.”
• Epic Games described the decision as “big news”. The creator of Fortnite plans to launch its own store on Google Play in 2025.

IMPORTANT QUOTE

“Ultimately, while these changes likely satisfy Epic Games’ requirements, they will have a number of unintended consequences that will harm American consumers, developers, and device manufacturers,” Google said.

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KEY STORY

US-based developer Epic Games’ Fortnite is a game backed by the world’s largest game studio, the Chinese company Tencent. The game launched in 2017 and became an instant hit, attracting the interest of millions of players across the globe. 

However, in August 2020, Apple and Google removed Fortnite from their app stores because Epic Games violated their policy with its Epic Games Store payment service, which allows in-game purchases. The saga sparked a series of lawsuits.

However, under the Digital Markets Act that came into effect in March, Apple and Google had to allow Epic Games to operate freely. In August, Fortnite became available again for iPhone users in the EU.

September ended on a positive note in terms of passenger traffic at Larnaka and Pafos Airports. Last month, 1.4 million passengers travelled to and from Larnaka and Pafos airports, further contributing to the upward trend observed this year. Compared to September 2023, passenger traffic increased by 7%, and this September’s performance set an all-time record for the month.

For September, the top markets for Larnaka Airport were the United Kingdom, Greece, Israel, Poland, and Germany, while for Pafos Airport, the top markets were the United Kingdom, Greece, Poland, Israel, and France.

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The trend in passenger traffic has shown an upward trajectory over the past nine months. From January to September, a total of 9.5 million passengers travelled through both airports, representing a 5% increase compared to the same period last year.

In October, the flight schedule continues to hover at around 1,000 flights per week, and the data available for the winter season is very encouraging. Specifically, from November to March, an additional 300,000 seats have been added compared to the same period last year, which had already seen an increase.

The Director of Aviation Development, Marketing and Communication of Hermes Airports, Maria Kouroupi stated, “It is crucial to maintain the positive prospects for steady growth and to invest in the development of year-round connectivity, which will bring multiple benefits to our country.”

Cyprus’ Cow Farmers’ Coordination Committee and the Deputy Head of the EU Delegation in Cyprus, Nikolaos Isaris discussed during a meeting they had in Nicosia critical issues surrounding the production of halloumi cheese and the conditions imposed by European Regulation 591/2021, which registers halloumi as a Protected Designation of Origin (PDO).

According to the Regulation, the production of halloumi must be carried out under the same standards and conditions throughout Cyprus, regardless of the market destination. However, the farmers pointed out that the cheese produced in the Turkish-occupied territories of the island and bearing the name “Halloumi” does not abide by the PDO specifications, and therefore cannot bear the official name “Halloumi – Hellim”.

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During the meeting, the European Union’s position that the production of halloumi can be a bridge of cooperation between the two sides of Cyprus, helping to build a climate of mutual trust, was underlined. Therefore, it was proposed to find a common formula for the production of the product by both communities, and the EU’s assistance in this direction was requested.

The producers are asking the EU and the Republic of Cyprus for equal treatment of the dairy sector both in the government-controlled and occupied areas of the island, pointing out that the same conditions and criteria for the production of halloumi should be applied on both sides until a final solution is found and the reunification of the island is achieved.

At present, they say, there is unequal treatment between producers in the government-controlled and occupied areas. While producers in the occupied territories can trade halloumi without restrictions on the use of goat and sheep’s milk in third countries, producers in the government-controlled areas are subject to strict adherence to quotas on the milk mix and PDO specifications, regardless of the destination of the product. This, they argue, increases production costs and creates conditions of unfair competition.