Paralimni’s town centre is moving closer to a major redevelopment after the municipality secured planning permission for a project aimed at modernising the area and boosting commercial activity.

Paralimni-Deryneia municipality said the permit was issued on August 10, clearing an important step in its wider development programme. Plans include resurfacing roads, upgrading pavements, adding trees and green spaces, creating service areas and increasing parking capacity.

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

The project is intended to make the town centre more accessible and functional for residents, businesses and visitors while preserving Paralimni’s local identity, history and traditions.

Revised Plans Retain Vehicle Access

A key change from the original proposal is the decision to retain vehicle access through the centre instead of fully pedestrianising the area. The revised plans were submitted in 2025 following a public consultation on traffic management.

Proposed changes include new one-way systems on Griva Digeni, Constantinoupoleos, Tassou Markou and Kolokotroni streets, alongside improvements to paved areas, greenery, public spaces and parking.

Project costs have also evolved as the plans have been developed. A government programme announced in 2025 allocated €11.2 million for the square and wider town-centre redevelopment, while more recent estimates put the square at €4 million plus VAT and the wider redevelopment at €7 million plus VAT.

Construction cannot begin yet, as the municipality must complete detailed drawings and technical studies before applying for a building permit and securing the remaining approvals.

New Square And Parking Facility Planned

A separate project will create a new public square near the Ayios Georgios church. Plans include an events area, park, monument spaces and extensive greenery, with accessibility a key priority. The municipality aims to launch the construction tender during the first quarter of 2027.

Meanwhile, construction is already under way on a three-storey multi-storey car park on Antonis Papadopoulos Street. The €6.76 million facility will provide 296 parking spaces, including 17 for people with disabilities and three for electric vehicles, as well as a lift.

The car park is being built under an 18-month contract awarded to N. Gavriel & Sons Ltd, with five-sixths of its construction cost financed by the Department of Town Planning and Housing.

Together, the town-centre redevelopment, new square and parking facility form part of a broader programme to transform central Paralimni and strengthen its role as a commercial and social hub.

The Great Sea Interconnector (GSI) has taken another step forward after Greece’s Independent Power Transmission Operator (Admie) submitted an investment request for the Cyprus-Israel electricity link to the energy regulators of both countries.

Marking the next stage of the project under the European Union’s Trans-European Networks for Energy (TEN-E) framework, the application comes amid renewed efforts to advance the strategic connection between Greece, Cyprus and Israel. French infrastructure investment group Meridiam recently became the majority shareholder in the GSI project company, while Greek and Israeli officials have also stepped up discussions on the Cyprus-Israel section.

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

Investment Framework Moves To Regulatory Review

Admie said the request follows completion of the required cost-benefit analysis (CBA) and cross-border cost allocation proposal (CBCA). Authorities and grid operators in Cyprus and Israel were consulted during the studies, which also incorporated updated forecasts for electricity demand, renewable energy development and future grid requirements.

According to the findings, the Cyprus-Israel interconnection remains economically viable under all scenarios examined. The project is also expected to strengthen electricity supply security, support renewable energy integration and connect the eastern Mediterranean electricity market more closely with the wider European grid.

Regulators in Cyprus and Israel will now formally assess the investment request and jointly determine how the project’s costs will be allocated between the two countries and recovered through regulated revenues.

Following approval of the investment framework, the project can move towards a final investment decision, allowing financing arrangements to proceed. Admie also plans to attract additional investors to the Cyprus-Israel section, following the model used for the Greece-Cyprus leg.

1,000MW Link To Connect Cyprus And Israel

Designated by the EU as a Project of Common Interest, GSI will have a transmission capacity of 1,000MW using a 500kV high-voltage direct current system. A planned submarine cable between Cyprus and Israel will stretch approximately 324 kilometres at depths of up to 2,400 metres, allowing electricity to flow in both directions.

Last week, Energy Minister Michael Damianos welcomed Meridiam’s entry into the project and said Cyprus would await the European Investment Bank’s due diligence assessment before considering whether the Republic should become a shareholder.

Separately, a bipartisan group of US lawmakers has urged Secretary of State Marco Rubio and US International Development Finance Corporation chief executive Ben Black to prioritise GSI, citing its importance for regional energy security and cooperation.

Silicon Valley leaders have long argued that artificial intelligence will make technology and services dramatically cheaper. OpenAI CEO Sam Altman has described a future where intelligence becomes extremely inexpensive, while Tesla and SpaceX CEO Elon Musk has predicted that AI and robotics will create greater abundance and drive down costs.

So far, those benefits have yet to materialise at scale. AI adoption remains relatively slow, while the enormous investment needed for data centres and AI infrastructure is putting pressure on electricity prices, supply chains and other costs. For the Federal Reserve, this creates a difficult balancing act: AI could eventually boost productivity and reduce inflation, but its current buildout is contributing to higher prices.

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

OpenAI chief economist Ronnie Chatterji said AI needs to be adopted by organisations and generate measurable value before its broader economic impact becomes visible in productivity statistics.

AI Adoption Remains Uneven

Capital spending on AI infrastructure in the U.S. is expected to reach $581 billion this year, according to Goldman Sachs Research, with global investment potentially reaching $1 trillion.

Despite the scale of spending, adoption remains far from universal. A May survey by the U.S. Census Bureau found that 17% to 20% of U.S. businesses reported using AI, with adoption significantly higher among large companies.

Companies that have implemented AI at scale also highlight the challenges. Julie Averill, former CIO of Lululemon, said successful deployment requires changes in employee behaviour and trust in the technology. OpenAI has observed a similar divide: its most advanced business users deploy AI at around eight times the rate of average companies.

Why Productivity Gains May Take Time

Economists point to the limits of automation. AI can perform individual tasks effectively, but many jobs combine tasks that are difficult to automate.

Stanford professor Charles Jones refers to these as “weak links”. Radiology, for example, involves interpreting scans but also communicating with patients and working with colleagues. AI can automate part of the job without eliminating the profession itself.

As a result, the full economic impact of AI may not become clear until businesses adopt the technology more broadly and reorganise their operations around it.

AI Adds To The Fed’s Policy Challenge

AI’s economic impact has become part of the Federal Reserve’s policy debate. Fed Chairman Kevin Warsh has argued that AI could eventually become a significant disinflationary force by increasing productivity and strengthening U.S. competitiveness.

Other officials are more cautious. In July, the Fed kept interest rates at 3.5% to 3.75%, while some officials expressed concern that AI infrastructure spending could add to inflationary pressures.

Minneapolis Fed President Neel Kashkari pointed to massive data-centre investment as a new source of demand. Household electricity prices rose 10% in the two years through July, compared with a 6.2% increase in overall consumer prices. Meanwhile, shortages of chips and other AI components are pushing up costs. JPMorgan Chase estimates that DRAM prices could rise 400% by the end of 2026 compared with 2024.

Warsh has consequently adopted a more cautious tone, saying that while AI investment is laying the groundwork for future growth, the timing and scale of its economic effects remain difficult to predict.

For the Fed, the challenge is clear: AI could eventually deliver major productivity gains, but the cost of building that future is already showing up in the economy.

A hot and exceptionally dry summer is disrupting nuclear power generation across Europe, forcing governments and energy companies to take extraordinary measures to maintain electricity supplies.

In Romania, state-owned Nuclearelectrica warned that it could shut down its last operating reactor as water levels in the Danube continue to fall. The country has declared an energy emergency through August and has resorted to measures including dredging the river and sinking rock-filled barges. Romanian naval forces also carried out a controlled underwater explosion to improve water flow to the cooling systems of the Cernavoda nuclear plant.

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

Romania’s two nuclear reactors typically generate around a fifth of the country’s electricity. Hungary has seen some relief after rainfall raised Danube water levels, allowing another turbine at the Paks nuclear plant to restart. Two of its eight turbines are now operating, with the plant supplying nearly half of the country’s electricity.

France Faces Heat, Drought And Jellyfish Disruptions

France is facing similar challenges. Nuclear power provides around 70% of its electricity, but EDF has reduced output at several reactors because of environmental conditions. Three reactors at the Gravelines plant were also shut down after a large influx of jellyfish triggered automatic safety measures.

France’s nuclear power plants have faced repeated disruptions this summer amid extreme heat, drought and wildfires. Because many nuclear plants rely on rivers or coastal waters for cooling, low water levels and unusually high temperatures can directly affect their operations.

European governments are now considering measures including upgraded cooling systems and scheduling maintenance around periods of extreme heat.

Treating Extreme Heat As An Emergency

The U.K. has also stepped up its response. Prime Minister Andy Burnham called a meeting of the government’s emergency Cobra committee as the country prepared for temperatures of up to 38°C.

Energy and Climate Intelligence Unit analyst Gareth Remond-King said the decision to treat extreme heat as an emergency may have come “a little overdue,” arguing that drought, wildfires and rising temperatures point to a broader climate crisis.

Heat Could Weigh On Europe’s Economy

The impact extends beyond energy infrastructure. An analysis by Dutch bank Triodos estimated that Europe’s extreme summer heat could cost the economy around €180 billion, largely because of weaker labour productivity. Triodos’ analysis estimates the impact at roughly 1% of EU GDP, equivalent to the bloc’s expected economic growth for 2026.

Heat is affecting the economy through lower agricultural output, higher food and electricity prices, reduced energy production, transport disruption and declining worker productivity. The latest disruptions highlight how increasingly extreme weather can affect not only Europe’s energy security but also economic growth and critical infrastructure.

Cyprus-based technology company Powersoft365 will showcase eight AI agents for the apparel, fashion and retail sectors at the Indonesia Retail Summit & Expo 2026 in Jakarta on August 26–27.

The company’s appearance comes just weeks after it joined a Cyprus business mission to Southeast Asia led by Chief Scientist Demetris Skourides. During that visit, Powersoft365 explored Indonesia’s technology ecosystem and potential opportunities for international cooperation.

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

Eight AI Agents For Retail

At booths i6 and i7, retailers, fashion groups, distributors and technology partners will be able to see Powersoft365’s AI Retail Operating Platform in operation.

The platform connects specialised AI agents with existing enterprise resource planning, point-of-sale, warehouse and e-commerce systems. The technology can analyse business data, forecast demand, recommend actions and automate selected processes.

Among the solutions on display will be ASR, an AI-powered stock replenishment tool that analyses sales and inventory and recommends product transfers between stores. The AI Data Analyst allows managers to query business data using natural language, while the AI Forecasting Agent supports purchasing and inventory planning.

The company will also demonstrate an AI POS Selling Assistant for sales recommendations and cross-selling, an AI Social Media Manager for content and campaigns, and an AI Virtual Try-On service for digital garment fitting.

Other solutions include ApparelBridge, which brings together product information from different suppliers, and an AI Stylist designed to match products with customer preferences.

From Retail Software To AI

Powersoft365 has more than 30 years of experience developing technology for clothing, footwear and fashion businesses, including retailers, chains, franchises and wholesalers.

Its ModaPro platform focuses on fashion-specific requirements such as size and colour matrices, multi-store inventory and real-time stock management. The company is now using that experience to move towards an agentic AI model, where software can understand business conditions, analyse data, recommend actions and assist with everyday decisions.

“AI in retail is not yet a chatbot,” CEO and founder George Malekkos said. “It is AI that understands your business, your products, your inventory, your customers, and your sales, and then helps you take action.”

Expanding Beyond Cyprus

Powersoft365 is positioning its platform as an API-first ecosystem, allowing retailers to connect AI agents with existing systems without replacing their entire technology infrastructure.

Malekkos said the company also wants to demonstrate that technology developed in Cyprus can compete internationally.

The Jakarta exhibition will give potential customers and partners an opportunity to test the technology and explore possible integrations and commercial cooperation.

Road freight activity in Cyprus continued to expand during the first quarter of 2026, with goods transported within the country increasing by 2.3% year on year. Freight movements to and from Cyprus recorded stronger growth, rising by 9.3%, according to figures from the Statistical Service.

International Freight Leads Growth

The latest figures point to continued growth in road-based goods transport despite Cyprus’ strong reliance on maritime connections for international trade.

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

Eurostat data show that Cyprus recorded 1.099 billion tonne-kilometres of road freight transport in 2025, compared with 1.096 billion in 2024 and 1.023 billion in 2023. Tonne-kilometres measure the weight of goods transported in relation to the distance travelled.

EU Road Freight Edges Higher

Across the EU, road freight reached 1.886 trillion tonne-kilometres in 2025, up 0.9% from the previous year. Almost 13.3 billion tonnes of goods were transported by road during the year.

National transport accounted for 62.2% of total EU road freight activity, increasing by 2.2% in 2025. International transport represented another 24.4%, while cross-trade and cabotage together made up 13.4%.

Performance varied significantly across member states. Ireland recorded the strongest growth at 10.5%, followed by Portugal at 10.3% and Croatia at 7.7%. Luxembourg saw the sharpest decline, at 14.1%, followed by Slovenia at 10.7% and Estonia at 10.3%.

Poland remained the largest contributor to EU road freight performance, accounting for 20.2% of the total, followed by Germany at 14.7% and Spain at 14.5%.

Food And Consumer Goods Lead Volumes

Food products, beverages and tobacco represented the largest category of road freight in the EU in 2025, generating 311.1 billion tonne-kilometres.

Germany recorded the highest volume of goods transported by road when measured in tonnes and was also a major participant in international freight flows across the bloc.

Road Transport Remains Key To Logistics

Road freight continues to play an important role in connecting ports, airports, warehouses and final destinations. According to DHL, the extensive road network gives trucks greater flexibility than other modes of inland transport and allows goods to reach locations that are not directly connected to major transport hubs.

For Cyprus, the 9.3% increase in freight movements to and from the island highlights the continued importance of road haulage in supporting trade and connecting businesses with ports and final destinations.

Overall, the latest figures point to moderate but continued growth in Cyprus’ road freight sector, while the wider European market also expanded in 2025 despite significant differences between countries and types of transport.

AI code-testing startup Blacksmith has raised $45 million in a Series B round, bringing its valuation to $550 million, nearly nine times higher than less than a year ago.

Peak XV Partners led the round, with existing backers GV and Y Combinator also participating. The latest funding brings Blacksmith’s total capital raised to $58.5 million.

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

Demand Grows As AI Speeds Up Coding

Founded in 2024, Blacksmith helps companies build, test and validate software before it reaches production. Customer numbers have grown from more than 700 to over 5,000 in less than a year, with companies including Mercury, Supabase, Clerk, Ashby and Expensify using the platform.

As tools such as Cursor, OpenAI’s Codex and Anthropic’s Claude Code make software development faster, companies are producing more code, increasing the need for reliable testing.

“Validating code is still a bottleneck, and it’s an even bigger bottleneck because people are writing even more,” CEO and co-founder Aditya Jayaprakash said.

From CI Platform To AI Coding Tools

Blacksmith initially focused on cloud infrastructure for continuous integration, allowing companies to run the builds and tests required before releasing software. It has since expanded into AI-powered development with Codesmith, an agent designed to automatically fix failed code checks.

The company reached a $10 million annualized revenue run rate with a team of just 10 people and has since expanded to around 30 employees. Revenue is now in the tens of millions of dollars, while some major customers spend more than $1 million annually on the platform.

Competition Remains Intense

Blacksmith faces competition from established platforms including GitHub Actions, as well as AI coding products and cloud providers such as Amazon Web Services, Microsoft Azure and Google Cloud.

Jayaprakash said the company aims to differentiate itself through faster testing and competitive pricing. Blacksmith plans to expand its platform further, with the broader goal of helping developers write, test and merge software more efficiently.

Norway’s $2.34 trillion sovereign wealth fund recorded a record profit of more than $184 billion in the first half of 2026, boosted by strong performance from Asian technology stocks.

Norges Bank Investment Management (NBIM), which manages the fund, reported a 9.4% return for the first six months. Profit reached more than 1.75 trillion Norwegian kroner, equivalent to around $184.9 billion.

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

Asian Technology Stocks Drive Growth

“The result is driven by good returns in the equity market, particularly from Asian technology stocks,” said Nicolai Tangen, CEO of NBIM.

Equities account for more than two-thirds of the portfolio, while other investments include fixed income, real estate and renewable energy infrastructure. U.S. stocks make up around 40% of the portfolio, with Nvidia, Apple and Microsoft among its largest holdings.

SpaceX Stake Revealed For First Time

NBIM also disclosed a 0.05% stake in SpaceX worth more than $1.2 billion as of June 30. Compared with its largest investments, the SpaceX holding remains relatively small. Nvidia accounted for around $61.8 billion of the portfolio, while Apple was valued at approximately $52.7 billion at the end of June.

Norway’s wealth fund also holds a 1% stake in Tesla worth around $15.7 billion, giving it exposure to two major companies led by Elon Musk.

With investments in more than 7,000 companies across over 50 countries, NBIM owns stakes equivalent to around 1.5% of all publicly listed companies globally.

Hotel occupancy in Larnaca fell by around 15% year on year in both July and August, as the conflict in the Middle East and continued geopolitical uncertainty weigh on the city’s tourism market.

According to Larnaca PASYXE President Marios Polyviou, the impact was strongest during the early months of the crisis. While conditions have since stabilised, the city entered the peak summer season with occupancy below last year’s levels.

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

August Bookings Show Some Improvement

July ended with occupancy around 15% below 2025, while August started at approximately 75%, compared with 90% a year earlier.

Late bookings have since improved the outlook, with Polyviou hoping the figures will strengthen further before the end of the month. Uncertainty remains, however, given Larnaca’s exposure to tourism markets affected by developments in the Middle East.

Israel Remains Key Tourism Market

Israel continues to be Larnaca’s largest tourism market, with flights returning to last year’s levels from the second half of July. Around 25 flights a day are currently operating between Israel and Larnaca Airport.

The UK remains the second-largest market, followed by Germany, Poland, Greece and other EU countries.

September Bookings Look More Promising

While Polyviou said forecasting the autumn season remains difficult, September bookings are currently developing at a good pace, raising hopes that the month will perform at least as well as last year.

Tourism revenue across Cyprus fell 16% in the first half of 2026 compared with the same period in 2025. Polyviou noted that January and February had recorded a 15% increase, suggesting the decline during the subsequent crisis-affected months was more pronounced.

New UK Partnerships Could Boost Larnaca

Larnaca hotels have also signed agreements with UK tour operators TUI and Jet2, which Polyviou described as particularly significant for the local market.

He said a coordinated push by major tour operators into Larnaca had not been seen on this scale since the pandemic. The new partnerships are expected to support British arrivals, with hopes for stronger growth in 2027.

Hotel occupancy in Limassol has reached around 90% in August, bringing the city’s performance back in line with last year, according to PASYXE Limassol President Christos Tsanos.

Last-minute bookings have played a key role in the recovery, with demand strengthening particularly during the week of August 10-17. Domestic travellers have also contributed to the increase, helping hotels across the city and district reach current occupancy levels.

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

Late Bookings Drive Summer Recovery

Tsanos said the strong role of last-minute reservations was the defining feature of this year’s tourism season. He added that the latest figures confirm his earlier expectation that the negative impact of the war in Iran would gradually ease.

In late June, Tsanos had forecast a recovery in tourist traffic following changes to travel advisories in several countries. At the time, however, he warned that a strong summer alone would not be enough to offset weaker periods earlier in the year.

Hotels Keep Prices Mostly Stable

Most Limassol hotels have kept their prices close to last year’s levels, with increases generally limited to no more than 5%.

Tsanos said the approach was intended to support both the domestic market and international visitors considering a return to Limassol. With the city attracting a large share of higher-income tourists, he added that maintaining high service standards remains particularly important.