Historic Milestone For Cyprus

Cyprus has taken a decisive step towards strengthening its strategic position in the European and international space community. On Thursday, the Republic of Cyprus signed a Memorandum of Understanding with the European Space Agency (ESA), officially paving the way for its transition to associate member status. This landmark agreement was signed by Deputy Research Minister Nicodemos Damianou for Cyprus and ESA Director General Josef Aschbacher at the Agency’s headquarters in Paris.

Enhancing National Competitiveness And Investment

The new status will significantly bolster Cyprus’ national space ecosystem by opening access to ESA mechanisms and programmes. This development is set to enhance the country’s competitiveness, drive innovation, and attract strategic investments – key elements that underpin the National Space Strategy. Moreover, Cyprus is poised to tap into extensive European funding and bolster international cooperation, thereby reaffirming its role as a reliable partner in Europe’s digital and technological future.

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Years Of Dedicated Preparation And Strategic Growth

In his address at ESA headquarters, Deputy Research Minister Damianou emphasized that this achievement is the culmination of years of dedicated preparation and cooperation with the agency. Citing the gradual progress made since the 2009 Cooperation Agreement, he highlighted recent strides in developing the necessary expertise, institutional framework, and a comprehensive legal structure aligned with international standards such as the Outer Space Treaty and the Liability Convention.

Key Infrastructure Developments And Innovations

Cyprus’ investments in its space infrastructure further underscore its commitment to becoming a significant player in the European space sector. Recent milestones include the inauguration of the Cyprus Space Research & Innovation Centre and the new Space Incubation Centre, complemented by the upcoming Earth Observation Ground Station. With over 300 days of sunshine annually and robust telecommunications, the country offers an ideal environment for hosting advanced satellite ground stations, control centres, and data gateways.

A Promising Future In European Space Leadership

The enhanced association with ESA comes at a pivotal time, particularly with Cyprus preparing for its Presidency of the Council of the European Union in early 2026. The Deputy Minister underscored that space is poised to become a key pillar in promoting Europe’s growth, competitiveness, and strategic autonomy. With this momentum, Cyprus is set to transform its space ambitions into tangible benefits for both its citizens and the broader European economy.

Commitment To Shared Progress And Cooperation

In closing remarks, both Cypriot and ESA leaders expressed deep appreciation for the collaborative efforts that made this transition possible. As ESA Director General Aschbacher congratulated Cyprus on its commitment to space and innovation, he extended a warm welcome to the citizens of Cyprus for a journey marked by discovery, technological advancement, and shared strategic benefits. With ratification by the House of Representatives in the upcoming months, Cyprus’ associate membership marks the beginning of an era characterized by expanded access to ESA programmes, funding, and collaborative opportunities across Europe’s dynamic space landscape.

Alpha Bank is making a strategic entry into sustainable finance with the launch of its inaugural green senior preferred bond, aiming to raise up to €500 million. The six‐year maturity bond, callable after five years, is anticipated to offer investors an interest rate of approximately 3 per cent.

Investment-Grade Milestone

This issuance is notable for its Baa2 rating from Moody’s, marking it as Alpha Bank’s first full investment grade debt in recent years. Such a rating underlines the bank’s robust financial positioning while enhancing its credibility in the green finance market.

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Coordinated With Leading Global Banks

A distinguished consortium of financial institutions is managing the bond offering. BNP Paribas, Crédit Agricole CIB, HSBC, J.P. Morgan (B&D), Morgan Stanley, and UniCredit are jointly leading the effort. Additionally, Crédit Agricole CIB is positioned as the Green Structuring Bank, reinforcing the issuance’s environmental objectives.

Strategic Market Implications

This issuance not only strengthens Alpha Bank’s commitment to sustainable growth but also aligns with broader market trends towards incorporating environmental, social, and governance factors into financial strategies. As green finance continues to reshape investment landscapes, Alpha Bank’s move may serve as a benchmark for future eco-friendly capital market initiatives.

The recent decline in electricity prices has been a decisive factor in maintaining negative inflation levels for September 2025, according to the Statistical Service and the Consumer Protection Agency’s Price Observatory. Despite price increases in certain food categories, the consumer price index has remained negative for the fourth consecutive month.

Steady Annual Inflation And The Role Of Energy Costs

The annual inflation rate stood at -0.7% in September, equivalent to August’s figures, following -0.9% in July and -0.4% in June. A notable 11% reduction in electricity costs on an annual basis has been the key influence in preserving overall price stability, with petroleum products also reflecting a 2.7% decrease.

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Differentiated Impact Across Economic Sectors

Comparisons with September 2024 reveal that the services sector experienced a 3% increase, while prices for food and non-alcoholic beverages dropped by 3%. Agricultural products decreased by 5%, despite a 3.5% rise from August 2025. Moreover, the Price Observatory recorded significant month-on-month increases for essential food items: frozen seafood and mollusks surged by 13.8%, fresh fish and mollusks by 12.7%, and fresh vegetables and greens by 9.5%. In contrast, fresh meat prices fell by 4%, with declines also noted for baby diapers (-2.4%), eggs (-1.8%), and breakfast cereals (-1.5%).

Enhanced Consumer Purchasing Power Through Energy Savings

The Consumer Protection Agency underscores that reduced energy costs—especially in electricity—have bolstered household purchasing power, mitigating the effects of isolated food price hikes.

Narrowing Price Gaps Across Supermarkets

An analysis of 228 common products across seven supermarket chains via the e-kalathi platform has shown a marked reduction in price differentials between premium and budget chains. In June 2025, the price gap was €230 (with prices at €990 and €760, respectively), narrowing to €147 by October (with prices at €961 and €814). For 40 common items, the price difference decreased from €43 on June 15 to €23 on October 15. The Agency advises consumers to use the e-kalathi tool for price comparisons, noting that price observatories serve as valuable informational resources rather than substitutes for personal market research.

Paphos Takes Center Stage In Global Sustainability

The esteemed Tourism Development and Promotion Company of the Paphos Region has been recognized on an international platform by Green Destinations. Ranked among the Top 100 Green Destinations of 2025, Paphos secured its position for outstanding sustainable tourism practices highlighted in the Culture and Heritage category.

Innovative Approach To Cultural Integration

The accolade celebrates Paphos’ groundbreaking initiative, which amalgamated the promotional efforts of four museums and information centers within the Akamas region into a cohesive package. By leveraging digital platforms and advanced technology, this initiative has not only enhanced tourist engagement but also elevated the recognition of the region’s cultural heritage. Such an integrative approach is a testament to the strategic foresight adopted by regional stakeholders.

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Competing On A Global Scale

A total of 180 exemplary practices were submitted from 33 countries, with each entry scrutinized by an international panel of experts from Green Destinations. The evaluation criteria ranged from narrative quality and innovative potential to sustainability compliance and the socio-cultural impact on local communities. This rigorous assessment underscores a global commitment to responsible tourism practices.

Significance Of The Distinction

Albert Salman, President of the Top 100 Committee, clarified that while inclusion in the list does not imply complete sustainability, it recognizes a significant venture that champions responsible tourism. This honor not only boosts Paphos’ standing on the European map of cultural and sustainable tourism but also highlights local efforts that merge heritage, innovation, and digital transformation.

As global competition intensifies and tourism continues to evolve, Paphos’ recognition serves as a benchmark for how innovation and cultural integration can propel a destination to international acclaim.

Overview Of Labour Market Dynamics

Recent data from Eurostat indicates that labour market slack in the European Union reached 11.7% of the extended labour force in 2024. This figure represents 26.7 million individuals aged 15 to 74 who are either unemployed, underemployed, or otherwise not fully engaged in the workforce.

Understanding The Composition

The comprehensive measure delineated by Eurostat encompasses not only the unemployed but also includes those who are underemployed, individuals who are actively seeking work despite not being immediately available, and those who are ready for employment but are not currently pursuing job opportunities.

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Country-Specific Variations

The data highlights significant differences across the EU. For instance, Cyprus recorded a notably lower slack of 8.8% in 2024, well below the EU average. In contrast, Spain reported the highest level at 19.3%, followed by Finland at 17.9% and Sweden at 17.8%. On the other end of the spectrum, Poland (5.0%), Malta (5.1%), Slovenia (6.3%), and Hungary (6.3%) are among the nations with the least slack.

Dissecting The Data Further

A closer look shows that unemployed individuals constitute the largest segment within the slack, accounting for 5.7% of the labour force. Complementing this are 2.7% of individuals who are available for work but not actively seeking employment, 2.4% representing underemployed part-time workers, and 0.9% for those actively pursuing work yet not immediately available to start.

Divergent National Patterns

Country-specific trends reveal unique patterns. In 23 EU countries, the majority of slack stems from unemployment, with Spain leading at 10.9%, followed by Greece at 9.9% and both Finland and Sweden at 7.9%. Conversely, Ireland and the Netherlands have a larger component of slack due to underemployment among part-time workers, contributing 4.4% and 4.9% respectively. Furthermore, Czechia shows a prominence of workers seeking but not immediately available for employment at 3.1%, while in Italy, the highest proportion arises from those available for work yet not actively seeking employment, standing at 7.3%.

Conclusion

The fluctuating patterns in labour market slack across the EU underline the complex interplay of economic factors influencing employment. As the region continues to address these challenges, differentiated strategies tailored to each nation’s unique labour market landscape will be essential for maximizing workforce potential.

Robust Fiscal Performance Backed By European Validation

Cyprus recorded a fiscal surplus of €1.44 billion for 2024—equating to 4.1% of GDP—while its public debt stands at €21.83 billion (62.8% of GDP), according to CYSTAT. These figures have been meticulously verified under the European Commission’s Excessive Deficit Procedure (EDP), reinforcing the marked improvement in the nation’s public finances.

Revenue Growth Driven By Strong Tax Collection

Total state revenues increased by €1.01 billion (7.4%) to reach €14.75 billion. The principal contributors to this surge were:

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• Income And Wealth Taxes: Up by €539.8 million (16.5%), totaling €3.80 billion
• Production And Import Duties: Up by €227.8 million (5.1%), reaching €4.68 billion, with net VAT revenues increasing by €190.8 million (6.4%) to €3.17 billion
• Social Contributions: Increased by €139.5 million (3.2%) to €4.52 billion
• Service Revenues: Up by €52.3 million (6.2%)
• Capital Transfers: Increased by €40.2 million (13.5%)

Only property income registered a decline of 10.8%, falling to €122.9 million.

Expenditure Adjustments Reflect Fiscal Discipline

Public expenditures experienced a modest increase of €127.3 million (1%), reaching €13.31 billion. Key spending areas with notable adjustments include:

• Social Benefits: Increased by €365.1 million (7.4%) to €5.30 billion
• Staff Remuneration: Up by €257.8 million (7.1%) to €3.88 billion
• Intermediate Consumption (Operational Expenses): Increased by €110.1 million (8.1%)
• Interest Payments And Property Income: Up by €36.7 million (9.2%)

Conversely, significant reductions were noted in other areas:

• Other Current Expenditures: Decreased by €271.1 million (24.3%)
• Capital Expenditures (Investments And Transfers): Fell by €372 million (23.6%) to €1.20 billion

Implications For Cyprus’s Fiscal Outlook

The fiscal results underscore Cyprus’s robust surplus position and the continued downward trend in public debt, which remains below critical thresholds as defined by post-Maastricht parameters. With the European Commission’s endorsement of these figures, the nation’s fiscal reliability is further solidified. This disciplined fiscal management not only enhances investor confidence but also positions Cyprus as a resilient player in an increasingly competitive economic landscape.

Impressive Shift From Deficit to Surplus

The General Government registered a fiscal surplus of €0.6 million in the second quarter of 2025 (April–June), according to preliminary data from the Statistical Service. This turnaround is particularly notable when contrasted with the €68.7 million deficit recorded during the same period in 2024, underscoring a significant improvement in the nation’s fiscal health.

Revenue Growth Outpaces Last Year

Total revenues increased by €307.8 million (a 9.5% jump), climbing from €3,237 million to €3,544.8 million compared with the corresponding quarter of 2024. This robust performance was driven by several key components:

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• Social Contributions: Up by €81.7 million (7.5%), reaching €1,177.9 million.
• Income & Wealth Taxes: Increased by €100.6 million (19.8%), totaling €607.7 million.
• Production & Import Taxes: Rose by €45.2 million (3.8%), to €1,226.4 million, with the net VAT income up by €22.9 million (2.9%) arriving at €811.9 million.
• Property Income: Grew by €55.3 million, reaching €84.2 million.
• Capital Transfers: Recorded a substantial increase of €47.9 million (86.6%), aggregating €103.2 million.

On the downside, the government noted reductions in current transfers (a decline of €15.8 million or 10.9%) and in revenues derived from goods and services (a decrease of €7.1 million or 3.2%).

Expenditure Trends and Fiscal Discipline

Total expenditures climbed by €238.5 million (7.2%), reaching €3,544.2 million compared with €3,305.7 million in the corresponding quarter of 2024. Key expenditure areas include:

• Social Benefits: Increased by €72.9 million (5.2%), totaling €1,466.6 million.
• Personnel Costs: Rose by €60.5 million (6.7%), reaching €965 million.
• Property Income Payable: Up by €21.5 million (13.7%).
• Intermediate Consumption: Increased by €62.3 million (19.4%), arriving at €383.6 million.
• Capital Expenditures & Transfers: Saw an uplift of €43.2 million (16.7%), totaling €302.6 million.

Further savings were achieved through a €21.9 million (9.4%) reduction in other current expenditures, which fell to €211.1 million.

Conclusion: A Promising Fiscal Outlook

The marked shift from a substantial deficit to a surplus, alongside notable revenue growth and managed expenditure increases, signals robust fiscal recovery and prudent fiscal management. This evolution not only improves confidence in public finances but also sets a promising tone for future financial planning and economic stability.

Tender Announcement And Strategic Vision

In November, the public tender to commercially develop the historic Old Gsp site is expected to be announced, marking a decisive step in redesigning the area as a new commercial hub in the nation’s capital. The municipality is working diligently to ensure that by next year, the rejuvenated site will begin its operation as a modern gathering point for both commerce and community life.

Dynamic Commercial Offerings And Enhanced Public Spaces

According to recent updates from official sources, once transformed, the space will feature a mix of restaurants and cafes, inviting visitors to complement their leisurely strolls with quality dining and beverages. Already open to the public for daytime walks and relaxation, the area has experienced a notable increase in foot traffic. This uptick in public engagement underscores the potential for the site to evolve into a vibrant center for both recreation and tourism.

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Robust Consultation And Thoughtful Infrastructure

The consultation process has been completed, and the municipality, in partnership with the General Accountant’s Office, is now focused on finalizing the tender documentation. With seven available units—two dedicated to restaurants, two to cafes, and three flexible spaces to be tailored based on future proposals—the project is poised for varied commercial adaptation. Notably, a Citizen Service Center is planned behind the amphitheater square, and an additional unit along Evagorou is earmarked for a mini-market or a similar venture.

A Unified Approach And Future Expansion

The development strategy calls for a ‘cold shell’ delivery method, meaning each unit will be handed over in a basic structural form, allowing the successful bidder to customize the interior based on specific operational needs. Emerging discussions suggest a potential consortium model, wherein the entire collection of spaces could be jointly developed rather than as isolated units. This unified approach promises a coordinated aesthetic and operational consistency across the redevelopment.

Potential Inclusion Of Adjacent Assets

In addition to these planned initiatives, the possibility remains to integrate the restaurant space on the ground floor of the THOK building—adjacent to Old Gsp and currently underutilized—into the overall commercial strategy. This prospect, originally conceived in the initial design phase, could further streamline the transformation and maximize the area’s economic and social impact.

As Nicosia moves forward with this ambitious project, the focus remains on expedient implementation to avoid any stagnation. The convergence of thoughtful urban planning, strategic commercial partnerships, and active community engagement signals a promising future for this historic site.

Overview Of Emerging Discrepancies

Recent findings by the Audit Service have cast a critical light on several restaurants and entertainment establishments in the Makenzie area of Larnaka. These businesses appear to have manipulated their tax declarations while the Tax Department often overlooked discrepancies, particularly when undocumented cash transactions or inconsistent Value Added Tax (VAT) remittances were involved. In some instances, well-known artistic events did not comply with the requisite tax obligations, raising significant concerns about fiscal integrity.

Questionable Practices And Inadequate Oversight

The report reveals that during standard monitoring procedures, a power outage at a specific venue during the early hours obstructed the printing of daily receipts—a situation that compromised the possibility of an effective tax audit. Historical records from 2010 to 2014 documented repeated complaints and findings for failure to issue proper receipts, with evidence suggesting deliberate misreporting. Notably, the involvement of the Unit for the Investigation of Tax Fraud was indicated, emphasizing the gravity of the situation.

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Systemic Weaknesses Across Multiple Venues

An audit encompassing 11 hospitality and recreational centers over a decade has highlighted a systemic issue: many establishments had taxes imposed solely on declared figures without thorough verifications. For businesses hosting high-profile artistic events during 2022-2023, the Tax Department’s estimates for VAT and artist tax were made on conservative assumptions that significantly underestimated actual liabilities.

Case Studies And Procedural Lapses

Detailed accounts from the investigation include cases where incomplete or unreliable invoicing practices were commonplace. One company—a restaurant and café bar—filed income tax returns between 2011 and 2021, yet major discrepancies were noted in the VAT contributions for tickets sold at multiple events. Additional concerns were raised when a significant cash reserve, found concealed beside a register during an audit, was characterized as a personal possession, further obscuring the true financial picture.

Implications And The Call For Rigorous Scrutiny

The pervasive laxity in tax enforcement, as demonstrated by the continued reliance on self-declared figures and the absence of robust on-site audits, underscores a pressing need for enhanced regulatory oversight. With many of the establishments lacking appropriate operational licenses and with historical evidence of extensive revenue concealment, the findings demand a comprehensive review of enforcement practices. For investors and stakeholders, this case serves as a cautionary tale about the critical importance of transparency and accountability in the hospitality sector.

The Cyprus Securities and Exchange Commission (CySEC) has taken a pivotal regulatory step by adopting new joint guidelines that require financial institutions to accurately estimate the aggregated annual costs and losses arising from significant information and communications technology (ICT) incidents. These measures, aligned with the Digital Operational Resilience Act (DORA Regulation), were set forth by the European Supervisory Authorities on July 17, 2024.

Regulatory Mandate and Industry Scope

Under Article 11(11) of the DORA Regulation, all financial entities under CySEC’s jurisdiction are now mandated to report aggregated annual losses from major ICT incidents. This comprehensive requirement covers a spectrum of market participants, including Cyprus Investment Firms, crypto-asset service providers, asset-referenced token issuers, central securities depositories, central counterparties, trading venues, alternative investment fund managers, management companies, and crowdfunding service providers authorized by CySEC.

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Establishing Uniform Reporting Standards

The implemented guidelines aim to standardize the methodology for loss estimation by specifying a uniform framework and template for reporting. This initiative is designed to bolster the consistency and reliability of financial reporting and risk management across the board, ensuring that all regulated entities adhere to a common framework in quantifying operational digital risks.

Enhancing Digital Operational Resilience

Enshrined as Regulation (EU) 2022/2554, the DORA Regulation underscores the imperative for robust digital operational resilience within the financial sector. CySEC’s regulatory action reinforces the broader European initiative to enhance ICT oversight and fortify the industry’s ability to withstand digital disruptions, a move that is critical in today’s increasingly tech-dependent financial landscape.

Future Perspectives

As financial institutions begin to comply with these rigorous standards, the industry is poised to benefit from enhanced transparency and more effective risk mitigation. These measures not only safeguard the financial system against the evolving landscape of digital threats but also contribute to a more resilient and stable economic environment.