The European Central Bank (ECB) is preparing for its next strategic review of monetary policy, set to begin after the summer holidays in August. This revision, conducted in collaboration with the 20 national central banks of the eurozone, aims to shape future actions on interest rates and crisis responses. Unlike the extensive 2021 review, this assessment will likely be shorter and more focused, incorporating lessons from recent economic crises and inflation dynamics.

The ECB’s previous review in 2021 redefined price stability and influenced policy implementation, maintaining a symmetrical 2% inflation target. As the ECB navigates post-crisis policy adjustments, this forthcoming review will address new economic challenges, including supply chain disruptions, geopolitical uncertainties, and structural changes like climate change and population ageing.

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Significant attention will be given to the ECB’s flexibility in policy responses and the effectiveness of its tools, such as quantitative easing. The review will also consider enhancing communication strategies to better address economic forecasts and investor expectations.

With a clear timeline and preparatory steps underway, the ECB aims to present its findings by the second half of 2025. This strategic review underscores the ECB’s commitment to evolving its monetary policy framework to ensure economic stability and growth across the eurozone.

The European Investment Bank (EIB) is set to inaugurate its offices in Cyprus this autumn, marking a significant step in enhancing its presence and operations within the region. This development follows an agreement between EIB President Nadia Calviño and Cypriot Finance Minister Makis Keravnos. The decision aims to foster closer collaboration with local stakeholders, bolster support for regional projects, and streamline advisory services.

Minister Keravnos highlighted the strategic importance of having EIB executives stationed locally. Initially, these executives will operate from the Ministry of Finance until permanent premises are established. This move underscores the EIB’s commitment to understanding and addressing the specific needs of Cyprus’s economy and society.

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Nadia Calviño emphasised the transformative impact of EIB investments on local communities across the EU, including Cyprus. Recent EIB investments in Cyprus include substantial funding for wastewater treatment projects and support for the country’s first publicly supported venture capital fund. Since 1981, the EIB has financed 82 projects in Cyprus, totalling €5.5 billion, with recent commitments worth €257 million.

The new office in Nicosia is expected to facilitate more direct support from EIB staff and leverage their expertise for project preparation and execution. This initiative aligns with the EIB’s broader mission to promote sustainable growth, innovation, and competitiveness within the Cypriot economy.

EIB Vice President Kyriacos Kakouris, the first Cypriot in this role, expressed optimism about the new office’s potential to boost the local economy. The EIB’s expanded local presence reaffirms its dedication to fostering economic development in Cyprus, ensuring that the benefits of EIB’s investments are maximised for the country’s future prosperity.

The Head of Service of Outreach and Knowledge at the European Union Intellectual Property Office (EUIPO), Claire Castel, has issued a stark warning about the dangers associated with using illegal platforms and counterfeit goods. Speaking to the Cyprus News Agency (CNA), Castel highlighted the economic and security risks posed by piracy and counterfeit operations, which fund organised crime and expose consumers to identity theft, viruses, and financial scams.

Castel emphasised the necessity of public awareness in combating intellectual property (IP) infringement. She pointed out that, despite improvements in the availability of legal platforms since the early 2000s, illegal streaming and counterfeit products continue to undermine legitimate businesses and sports organisations by diverting necessary funding and revenues. These illegal activities not only jeopardise the financial stability of these entities but also endanger consumers by offering substandard products that fail to meet safety and health standards.

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To mitigate these risks, Castel advised consumers to verify the authenticity of websites by looking for HTTPS in the URL, checking for clear contact information, reading reviews on trusted platforms, and ensuring the presence of legal disclaimers and privacy policies. She also recommended the EU’s agorateka portal, which lists over 4500 legal content sources, as a resource for distinguishing between legitimate and pirated digital content.

Addressing the cost-driven motivations behind the consumption of counterfeit goods and pirated content, Castel acknowledged that affordability and accessibility are significant factors. However, she urged consumers to consider the hidden costs of such choices, including health and safety risks, cybersecurity threats, and the support of organised crime. Castel called for a continued European-wide approach to tackling IP crime, supported by the EU policy cycle and member states’ participation.

This comprehensive strategy underscores the need for collective action and consumer vigilance to safeguard economic interests and public safety against the pervasive threat of illegal platforms and counterfeit operations. As the digital landscape continues to evolve, so too must the measures to protect intellectual property and ensure a secure online environment for all.

In a landmark decision, the Cyprus Securities and Exchange Commission (CySEC) has greenlighted Eurobank‘s takeover bid for Hellenic Bank, marking a significant consolidation in the Cypriot banking sector. Approved on 25 June 2024, Eurobank’s bid seeks to acquire up to 100% of Hellenic Bank’s issued share capital, with Eurobank already holding a 55.48% stake. This acquisition, deemed successful and unconditional, is poised to reshape the competitive landscape of the banking industry in Cyprus.

The takeover offer, set at €2.56 per share, is strategically priced. It represents a 14.84% premium over the average closing price for the preceding 12 months but is also a 3.03% discount on the closing price before the bid’s announcement. This pricing strategy highlights Eurobank’s intent to offer a balanced value proposition to Hellenic Bank’s shareholders while managing its investment outlay. Notably, the offered price also stands at a 33.91% discount compared to Hellenic Bank’s net asset value as per the latest unaudited financial statements.

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The approval by CySEC underscores regulatory confidence in the stability and potential benefits of this consolidation. For Eurobank, a subsidiary of Eurobank Ergasias Services and Holdings S.A., the acquisition is a strategic manoeuvre to bolster its market presence and operational capabilities within Cyprus. The move aligns with Eurobank’s broader expansion strategy and its ambition to fortify its footprint in the region’s financial services market.

From 1st July to 30th July 2024, shareholders of Hellenic Bank have the opportunity to accept the takeover bid. The process is facilitated through detailed documentation and support, ensuring transparency and ease for shareholders contemplating the offer. The comprehensive Takeover Bid Document, along with acceptance forms, will be readily accessible, providing all necessary information and procedural guidance.

This acquisition is not just a significant milestone for Eurobank and Hellenic Bank but also a pivotal event for the Cypriot banking sector at large. It reflects a trend towards consolidation aimed at achieving greater operational efficiencies, enhanced customer service, and robust financial stability. The successful merger of these two banking entities is expected to yield synergies that will strengthen their market position, enhance competitive advantage, and ultimately deliver improved value to shareholders and customers alike.

As this acquisition unfolds, stakeholders will be keenly observing the integration process and its impact on the broader financial ecosystem in Cyprus. Eurobank’s strategic acquisition of Hellenic Bank could very well set a precedent for future consolidations and partnerships within the region, signifying a new era of growth and transformation in the Cypriot banking landscape.

The University of Cyprus (UCY) is set to host its inaugural Twin4Merit summer school from September 2-10, 2024, in Nicosia. This event, part of the Horizon Europe-funded Twinning for Excellence in Management and Economics of Research and Innovation (Twin4Merit) project, aims to enhance knowledge in research management and economics through expert-led lectures and methodology training sessions.

The Twin4Merit project focuses on critical meta-research areas, including research assessment, open science, and gender equality. Collaborating with Maastricht University’s UNU-MERIT and the University of Carlos III of Madrid, with dissemination support from the European Office of Cyprus, the initiative seeks to elevate Cyprus’s research landscape.

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The summer school will benefit not only UCY members but also the broader Cypriot scientific community, including researchers and Early Career Researchers (ECRs) from all Cypriot universities and relevant organisations. It also welcomes applications from other EU countries and the EMMENA region.

The programme begins with Transferable Skills Sessions on September 2-3, covering grant writing, project management, and research networking. A joint research conference on research assessment will follow on September 4-5, in collaboration with the SInnoPSis project. The final sessions on September 6, 9, and 10 will offer scientific skills training by advanced partners and local experts, focusing on ethics in research, open science principles, and gender in research assessment.

“The 1st Twin4Merit summer school aims to enhance the impact of UCY’s role as a major research and educational hub for the Eastern Mediterranean, Middle East, and North Africa (EMMENA) region,” the statement explained. The agenda will be finalised and published in early July, with a preregistration form available for interested participants.

The Turnover Value Index of Wholesale Trade, during the first quarter of 2024, also recorded an increase of 3.2%, compared to the corresponding quarter of the previous year.

The largest increase was recorded in non-specialised wholesale trade with 18.5%, followed by wholesale trade of information and communication equipment with 15.4%.

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The largest decrease, 26.7%, was recorded in wholesale trade in agriculture raw materials and live animals.

The Turnover Value Index of Sales and Repair of Motor Vehicles recorded an increase of 15.7% compared to the corresponding quarter of the previous year, according to data released by CySTAT.

Motor vehicle sales increased by 20% in the first quarter, compared to the first quarter of 2023, vehicle maintenance and repair increased by 11.2% and the sale of motor vehicle parts and accessories recorded an increase of 8.4%. On the other hand, the sale, maintenance and repair of motorcycles and their parts and accessories recorded a 10.7% decrease, compared to the same period in 2023.

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The Bank of Cyprus has been honoured with the “Best Financial Institution Bond in Southeast Europe” award by EMEA Finance for its issuance of Additional Tier 1 (AT1) capital securities worth €220 million in June 2023. This accolade highlights the bank’s financial and operational strength, particularly significant as the bond issuance successfully reopened this market segment following the collapse of Credit Suisse.

The AT1 issuance was met with extraordinary demand, with an order book oversubscribed over twelve times, exceeding €2.75 billion. This overwhelming investor interest underscores the bank’s solid reputation and market confidence in its financial health and strategic direction.

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Bank of Cyprus CEO Panicos Nicolaou praised this achievement, viewing it as a milestone that aligns with the bank’s 125th anniversary celebrations. He noted that the successful bond issuance is a testament to the bank’s progress and resilience, reflecting its strategic initiatives aimed at strengthening its capital base and supporting sustainable growth.

The recognition from EMEA Finance places the Bank of Cyprus at the forefront of financial innovation and stability in the region. The award not only celebrates the bank’s past accomplishments but also sets a solid foundation for future endeavours in the evolving financial landscape.

The bond issuance and subsequent award signify a significant achievement for the Bank of Cyprus, reinforcing its position as a leading financial institution in Southeast Europe. As the bank continues to navigate the complex economic environment, this accolade serves as a reaffirmation of its strategic vision and commitment to excellence.

Cyprus’ ship registry in the first half of the year has shown an increase of ocean-going vessels for the first time in the last two years, due to adverse effects brought by geopolitical tensions affecting global shipping, Deputy Minister for Shipping Marina Hadjimanolis has said.

Speaking at the International Business Day organised by the Cyprus International Business Association Hadjimanolis cautioned that after the rise the geopolitical tensions due to the war in Ukraine and attacks on commercial shipping by the Houthi regime in the Red Sea, challenges may evolve and persist leading to turbulence this year.

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Stating that the maritime sector is an integral part of Cyprus’s identity, the Deputy Minister added that the continuous upgrading and strengthening of the services provided by the Shipping Deputy Ministry is undoubtedly one of the main priorities that have been set from the beginning, when the Government of Nikos Christodoulides took over in March 2023.

She stressed that an increase of 5.5% has been achieved during the last 6 months in the fleet of Cyprus-flagged seagoing vessels, after its two-year decline.

“The number of companies registered in the Cyprus Tonnage Tax System has been increased by 14%, reaching 420 in number,” Hadjimanolis said. Cyprus is the largest ship-management centre in the EU and one of the largest in the world.

Furthermore, the Deputy Minister pointed out that the Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and the Advisory Committee on Competitiveness of the Cyprus Maritime Cluster have been established, to continuously improve and enhance the competitiveness of the Cyprus flag and Cyprus shipping, while the One-Stop Shipping Centre commenced its operations in November, aiming to provide quality service to all shipping companies, as well as companies whose activities are related to shipping and are based in Cyprus.

She also recalled that following a decision by the Council of Ministers, from January 2024, the annual tonnage tax for ships registered in the Register of Cyprus Ships will be reduced by up to 30% for each ship that demonstrates effective greenhouse gas emissions reduction measures.

This, Hadjimanolis said, ensures “that shipowners are rewarded for their efforts for decarbonization of the shipping sector.”

Big names such as Tesla and Samsung have shown interest in a public tender aiming to set batteries to store electricity in Cyprus, Minister for Energy, Commerce and Industry George Papanastasiou has said, adding that the first phase concerns a 150-Mega Watt storage facility for which a tender is expected to be launched in September.

Addressing the International Business Day organised by the Cyprus International Business Association (CIBA), Papanastasiou outlined the government’s strategy to reduce the electricity prices in Cyprus, which he described as the single source that would provide “a real chance” for the improvement of the country’s competitiveness.

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The Energy Minister referred to the three pillars that would render Cyprus as an energy hub and facilitate green transition. The first pillar concerns the creation “as soon as possible” of the terminal in Vasilicos for the introduction of Liquified Natural Gas (LNG) for electricity generation, which would directly reduce CO2 emissions by 35% to 40% and consequently the cost of electricity, as he stressed.

Such emissions account for €300 million tones of CO2 rights per annum, a cost transferred to the consumer, he added.

The second pillar concerns the further increase of renewables and mainly energy from photovoltaics. Papanastasiou stressed however that while Cyprus generates 750 MW of electricity from solar panels, only 19% enters the electricity grid while the remainder is discarded.

“This is unthinkable,” he said, noting that the Ministry is preparing to use a subsidy scheme for the development of a storage system with the private sector with a total subsidy of €40 million.

Papanastasiou said the project is in the stage of public consultation with the first phase expected to be launched in September for a 150 MW storage system.

“We are already seeing interest from big names such as Tesla and Samsung as 150 MW is a quite substantial capacity,” he added.

Moreover, according to the Energy Minister, the third pillar concerns the electricity interconnection between Cyprus and Greece, with a sub-sea cable called “Great Sea Interconnector,” estimated to be the largest in the world.

He pointed out that usually in the case of interconnectors, the electricity flows from the cheapest to the most expensive destination.

Papanastasiou recalled that the government awaits a cost and benefit analysis, by the Greek IPTO, the project promoter, to take its final investment decision to enter the project’s equity with €100 million.

But he noted that the project will happen, as it secured a €657-million grant from the European Commission via the Connecting Europe Facility, which is the largest financing provided in the context of the Facility.

He also noted that the government aims to launch a competitive market for electricity by July 2025, as well as to create a “smart” electricity grid which would facilitate the increase of renewables in Cyprus’ energy mix.