Greek banks face a competitive disadvantage in terms of revenue generation, with a less diversified structure compared to their European counterparts. DBRS Morningstar reports that net supplies revenue in Greek banks represents only 17% of total operating revenue in 2024, compared to 22% in Europe. This lag is largely due to the global financial crisis and the Greek debt crisis, which significantly reduced household savings.

Despite these challenges, Greece’s economy has outperformed the Eurozone, and this trend is expected to continue. Strong private consumption, exports, and investment contributed to a 2.3% growth in 2023, with GDP projected to grow by more than 2% in 2024. The labor market has also improved, with unemployment at 9.6% in November 2024, down from a peak of 27.8% in 2013.

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Greek banks have benefited from higher interest rates, particularly due to a large portion of their loans being at floating rates. However, as net interest income (NII) faces pressure from expected rate reductions, Greek banks need to diversify their revenue streams further. The government’s plan to reduce banking supplies for retail customers by 2025, which includes cuts to ATM and money transfer services, could slow the pace of growth in net supplies revenue.

In response, Greek banks are focusing on improving revenue from supplies, both organically and through external partnerships and acquisitions. Net supplies increased to 17% of total operating revenue in 2024, up from 15% in 2019. These efforts, combined with the ongoing economic recovery, should help narrow the revenue gap with European banks.

Despite challenges like NII compression, higher operational costs, and potential credit risk increases, DBRS expects Greek banks to maintain adequate profitability. Continued economic growth, especially through EU funding and structural reforms, will support this outlook. However, geopolitical risks, such as trade barriers, could impact future growth prospects.

Looking ahead, DBRS believes that the ongoing strategic initiatives by Greek banks and the country’s robust economic performance will help mitigate the impacts of lower interest rates, allowing for continued growth in private savings and investments.

Inflationary pressures in the Eurozone showed a slight acceleration in January, with Greece seeing a more noticeable increase. According to preliminary data from Eurostat, Greece’s Consumer Price Index (CPI) rose to 3.1% year-on-year in January, up from 2.9% in December. Monthly, however, prices in Greece decreased by 0.7%.

Across the entire Eurozone, inflation edged up marginally to 2.5% annually, from 2.4% in December (following a 2.2% rise in November). This slight uptick came despite analysts predicting inflation would remain stable at 2.4%. Every month, the index dropped by 0.3%.

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When excluding volatile food and energy prices, the underlying inflation rate in the Eurozone remained steady at 2.7% year-on-year. However, when comparing January to December, structural inflation showed a significant monthly decline of 1%.

Looking at individual components, inflation in services decreased slightly to 3.9% in January from 4%, while inflation in food, alcohol, and tobacco slowed more noticeably, falling to 2.3% from 2.6%. The price rise for non-energy goods remained steady at 0.5% annually.

Energy prices were the largest contributor to increased inflation, showing a sharp rise of 1.8% annually compared to just 0.1% in December. Monthly, energy prices rose by 2.9%.

Turing, the AI data startup based in Palo Alto, has announced that its revenue surged by 300% to reach $300 million in the past year, marking a significant milestone in the company’s growth. The firm, which helps AI labs like OpenAI, Google, Anthropic, and Meta improve their models, has also achieved profitability. Turing was last valued at $1.1 billion in 2021.

As AI models advance in complexity, the demand for human trainers with specialized expertise has skyrocketed. This surge has propelled the valuation of startups such as Turing’s competitor, Scale AI, which was valued at $14 billion last year.

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Turing’s business model focuses on matching AI labs with human experts in specific fields, streamlining the process of gathering and labeling data to train models. With access to a pool of over 4 million experts, including software developers and PhD scientists, Turing provides critical services to reduce the burden on AI labs to manage hundreds of trainers.

However, the cost of this service can be significant, with each complex data annotation potentially costing hundreds of dollars. Given that advanced AI models require millions of annotations, the price tag for training can quickly escalate. For example, Meta used over 10 million human annotations to train its Llama 3 models.

As AI labs reach what is known as the “data wall”—a plateau in model performance due to the lack of more internet-based training data—companies like Turing are playing an increasingly important role in helping overcome this obstacle. Turing’s CEO, Jonathan Siddharth, emphasized that these human data companies are essential for maintaining the growth trajectory of AI models.

“Companies like Turing are helping scale AI models to compensate for the data deficit we face,” Siddharth told Reuters.

The EU is ramping up investment in cutting-edge microchip technology, crucial for AI, space exploration, and beyond. As demand for smaller, more powerful chips grows, Europe is backing innovative research and production to secure its future in tech.

On June 1, 2024, China’s Chang’e 6 mission successfully landed on the Moon to collect samples, and Edouard Lepape, managing director of NanoXplore, a French firm specializing in microchips for space, proudly highlighted his company’s contribution. “One of our components is currently on the Moon,” he said, referring to a specialized chip used in aerospace.

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Lepape leads DUROC, an EU-funded initiative designed to advance microchip tech for space, involving experts from Germany, France, Greece, and Sweden. Partners like Airbus and Thales are also on board, pushing European chip technology to new heights. Space chips are distinct from commercial devices, and designed to withstand extreme radiation, cold temperatures, and vibrations. “You can’t just use ordinary chips in space,” Lepape explained, noting the harsh environment that requires chips to be ultra-durable and energy-efficient.

Microchips, which power everything from smartphones to supercomputers, have been shrinking and becoming more powerful since the first integrated circuit in 1959. Today’s microchips contain billions of transistors and are essential in everything from AI to everyday gadgets. The industry constantly pushes for smaller, faster chips, with each generation offering improved power efficiency and performance. In 2019, the 7nm chip was introduced, followed by the more advanced 3nm chips in the latest smartphones.

“The demand for smaller transistors is driven by the need for smarter devices like smartphones and AI,” said Marc Assinck, spokesperson for ASML, a company specializing in microchip lithography. ASML’s SeNaTe consortium helped develop 7nm technology, which paved the way for today’s 3nm chips.

However, Europe’s share of the global chip market has dwindled to just 10%, with Asia dominating production. To regain competitiveness, the EU launched the European Chips Act, aiming to double Europe’s semiconductor market share to 20% by 2030, with a €43 billion investment in R&D and manufacturing.

In 2024, TSMC, Taiwan’s largest chipmaker, began construction of its first European plant in Dresden, Germany, in partnership with Bosch, Infineon, and NXP. Production is set to begin in 2027. Meanwhile, Intel is also building a massive facility in Germany, expected to be Europe’s largest semiconductor plant.

Both TSMC and Intel are among the few capable of producing cutting-edge 3nm chips, alongside South Korea’s Samsung. As Europe aims to boost its chip manufacturing capacity, the focus is not just on consumer electronics but also on the unique needs of space tech.

Space-bound chips, unlike those used in smartphones, must be able to process large amounts of data while consuming minimal power and resisting radiation. Currently, space chips use 65nm and 28nm technology, but NanoXplore and DUROC are working to bring space chips to 7nm. “If we achieve 7nm for space, we’ll be a major player,” said Lepape.

With support from the EU’s Horizon Programme and initiatives like Space R&I, Europe hopes to stay competitive in the global chip race, ensuring technological sovereignty for AI and other critical industries.

Research for this article was funded by the EU’s Horizon Programme, and the opinions shared are those of the interviewees, not necessarily the European Commission.

In a historic moment for Beyoncé, the music icon secured her first-ever Album of the Year Grammy at the 2024 ceremony, with her country-inspired album Cowboy Carter. This victory came after years of being nominated but never clinching the prestigious award, despite accumulating more lifetime Grammys than any other artist.

Beyoncé, visibly moved, took the stage to express her gratitude: “I feel very full and very honored. It’s been many, many years,” she said, her words resonating with the audience.

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Meanwhile, Kendrick Lamar dominated the night, taking home both Record of the Year and Song of the Year for his fiery track “Not Like Us,” a powerful diss aimed at Canadian rapper and singer Drake.

The title of Best New Artist went to Chappell Roan, lead singer of Pink Pony Club, who used her platform to call for better treatment of musicians by record labels. She passionately advocated for fair wages and healthcare for artists, recalling how she once felt “dehumanized” by the lack of health insurance. “Labels, we got you, but do you got us?” Roan asked, delivering a powerful message to the industry.

This year’s Grammys were more than just a celebration of music; they also served as a fundraiser for victims of the recent devastating wildfires in Los Angeles, which had claimed 29 lives and displaced thousands, including numerous musicians. The show, which aired live on CBS, kicked off with an emotional performance of “I Love LA,” featuring an all-star ensemble of musicians including Dawes, John Legend, Brad Paisley, St. Vincent, and Brittany Howard. Host Trevor Noah acknowledged the dual purpose of the evening, saying, “Tonight, we are not only celebrating our favourite music, but also the city that has given us so much of it.” Throughout the night, Noah encouraged viewers to contribute to the relief efforts.

The winners of the Grammy Awards are selected by the 13,000 members of the Recording Academy, including singers, songwriters, producers, and engineers.

Industrial production costs in Cyprus saw a 1.9% decline in 2024 compared to the previous year, according to the Cyprus Statistical Service (CyStat). The latest data reflects a broader economic trend of stabilizing prices across key sectors, despite fluctuations in specific industries.

The Index of Industrial Output Prices for December 2024 stood at 122.3 units (base 2021=100), marking a 0.1% month-on-month increase from November. However, on an annual basis, the index recorded a 1.5% drop compared to December 2023.

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Sectoral Performance: Stability And Declines

• Electricity supply saw the sharpest decline, with prices plunging 10.5% year-on-year.
• Mining and quarrying posted a 0.7% increase, while manufacturing rose by 0.9%.
• Water supply and materials recovery remained stable year-over-year but recorded a 0.3% monthly increase in December.

Manufacturing Trends: Growth In High-Tech And Consumer Goods

Despite the overall decline in industrial prices, several manufacturing divisions experienced growth:

• Furniture, electronics, and textiles saw notable increases, with the manufacture of furniture, other manufacturing, and machinery repair rising by 4.7%.
• Electronic and optical products grew by 4.3%, while paper and printing increased by 3.5%.
• Pharmaceuticals and chemicals saw a 2.0% uptick, reinforcing the strength of Cyprus’ chemical production sector.

Conversely, declines were observed in:

• Rubber and plastic products (-0.6%)
• Basic metals and fabricated metal products (-0.6%)
• Other non-metallic mineral products (-0.1%)

Looking Ahead: Economic Implications

The drop in industrial output prices suggests lower production costs for businesses, potentially easing inflationary pressures. However, sector-specific gains—particularly in manufacturing, technology, and pharmaceuticals—signal resilience in high-value industries. The continued decline in electricity prices could further impact industrial production costs, shaping economic conditions in 2025.

With Cyprus’ industrial landscape evolving, businesses will need to adapt to shifting cost structures and market dynamics to remain competitive in the coming year.

Cyprus’ Finance Minister Makis Keravnos has expressed satisfaction with the European Central Bank’s (ECB) decision to lower key interest rates by 0.25%, calling it a positive development for the European and Cypriot economies.

In a statement on Friday, Keravnos highlighted that the rate cut aligns with economic conditions in Cyprus, where inflation stood at 1.8% in 2024. He emphasized that this move is expected to ease financial conditions and support growth.

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However, the Minister also urged Cypriot banks to act without delay in lowering their interest rates, in line with the ECB’s decision. He reminded banks of their commitment during recent meetings with the Finance Ministry to swiftly adjust rates in response to ECB policy changes.

The ECB’s latest cut marks a shift in its monetary policy stance, aimed at stimulating lending and economic activity amid easing inflation pressures across the Eurozone. The Cypriot government now looks to domestic financial institutions to follow suit and pass on the benefits to businesses and households.

Cyprus is expanding its global maritime footprint as Shipping Deputy Minister Marina Hadjimanolis embarks on an official visit to Oman and Qatar for high-level discussions on maritime cooperation and industry growth.

Hadjimanolis will first travel to the Sultanate of Oman on Saturday at the invitation of Saeed bin Hamoud bin Saeed al Maawali, Oman’s Minister of Transport, Communications, and Information Technology. During her visit, she will engage in bilateral meetings with senior government officials and representatives from Asyad, Oman’s state-owned shipping company.

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A key milestone of the visit will be the signing of two Memoranda of Understanding (MoUs) between Cyprus and Oman, aimed at strengthening maritime transport collaboration.

Following her engagements in Oman, Hadjimanolis will head to Qatar, where she will attend the Seatrade Maritime Qatar Exhibition & Conference 2025 at the invitation of Qatar’s Minister of Transport, Sheikh Mohammed bin Abdulla bin Mohammed Al Thani. In Doha, she will hold bilateral discussions with Qatari officials and participate in industry meetings to further promote Cyprus’ position as a global shipping hub.

These diplomatic efforts underscore Cyprus’ commitment to enhancing maritime cooperation in the Gulf region, reinforcing its status as a leading player in global shipping.

Cyprus has secured a spot in the next stage of the Davis Cup World Group playoffs after a decisive doubles victory against Thailand on Saturday in Nicosia.

The Cypriot duo, Sergis Kyratzis and Eleftherios Neos, delivered a commanding performance, defeating Thanapet Chanta and Pruchya Isaro in straight sets 6-3, 7-5. Their win cemented Cyprus’ dominance in the tie, bringing the overall score to 3-0.

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On Friday, Cyprus gained an early advantage with two hard-fought singles victories. Menelaos Efstathiou overcame Maximus Parapol Jones in a comeback win (2-6, 6-3, 6-2), while Stylianos Christodoulou battled past Kasidit Samrej (1-6, 6-0, 6-4).

The tournament continues with two additional singles matches scheduled for Saturday, but Cyprus has already secured its place in the next playoff round, marking a strong Davis Cup campaign for the team.

As Cyprus braces for another dry summer, the government is ramping up efforts to protect water resources and lessen dependence on unpredictable climate patterns. Authorities are implementing both immediate and long-term measures to safeguard agriculture and secure water access. With dam reserves at just 26% capacity, authorities prioritize immediate and long-term solutions to sustain agriculture and ensure water availability.

Government Strategy To Manage Water Scarcity

Minister of Agriculture, Rural Development, and Environment, Maria Panayiotou, outlined a 28-action strategic plan aimed at reducing reliance on rainfall-dependent irrigation. The five-year initiative focuses on improving water management, expanding desalination infrastructure, and exploring alternative water sources.

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Investment Breakdown:

• €109.3 million: Primary sector development (2024-2028)
• €2.9 million: Agro-tourism, infrastructure, and circular economy in Arakapas The village of Arakapas benefits from €2.9 million allocated for agro-tourism, infrastructure, and circular economy projects.

Authorities Brace For A Difficult Summer

Deputy Director of the Water Development Department, Yiorgos Kazantzis, warned that irrigation water quotas will be drastically reduced in 2024. To mitigate the impact, priority will be given to professional farmers and permanent plantations.

Authorities are fast-tracking desalination projects. The Paphos desalination plant, currently under repair, is expected to be operational by August. A new 10,000 cubic meter/day desalination facility in Kissonerga is set for completion by October. Officials are also identifying underutilized boreholes and underground sources with the Geological Survey Department.

Encouraging Private Sector Involvement

The Cyprus Cabinet has approved measures allowing hotels and farmers to build private desalination plants, easing pressure on public infrastructure. Authorities are also ensuring that existing desalination plants operate at full capacity, except during maintenance.

Public Awareness And Conservation Efforts

Government-led water conservation campaigns stress the urgency of reducing wasteful consumption. Without public cooperation, Cyprus risks facing stricter water restrictions in 2025, when irrigation quotas could be further tightened.

With climate change exacerbating water shortages, Cyprus must act swiftly. Investments in desalination, groundwater extraction, and efficiency measures offer a proactive approach, but execution is critical. The success of these initiatives will be critical in securing Cyprus’ water future amid growing climate challenges.