Cyprus used its six-month Presidency of the Council of the European Union to advance key initiatives on digital policy, artificial intelligence, research and innovation, according to Deputy Minister Nicodemos Damianou, who said the country helped shape a more ambitious agenda for Europe’s technological future.

Speaking on CyBC’s Apo Mera se Mera, Damianou said the Presidency had received broad recognition from European partners, crediting careful preparation, strong coordination and effective execution throughout the six-month term.

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“The broad recognition that the Cyprus Presidency has received from our European partners reflects the serious preparation, collective effort and effective management that have characterised these six months,” he said in a statement following the interview.

A Presidency Measured By Outcomes

Damianou said the success of a Council Presidency should be measured not by the number of meetings it hosts, but by the progress it delivers. Cyprus, he argued, focused on advancing priorities that support Europe’s competitiveness in technology, research and innovation.

He said much of that agenda has been shaped by the Draghi report, published in September 2024, which warned that Europe risks falling behind unless it significantly increases investment in technological development.

Since then, the European Union has placed greater emphasis on strategic autonomy, technological independence and a single market capable of helping innovative businesses scale more effectively across member states.

According to Damianou, that challenge remains significant, with around 85% of European businesses still relying on technologies developed outside Europe, including cloud services and artificial intelligence.

A Broad And Demanding Policy Agenda

Against that backdrop, the Cyprus Presidency oversaw negotiations on a wide range of legislative and policy files covering cybersecurity, connectivity, digital infrastructure, artificial intelligence, space technologies, research and innovation.

Damianou noted that Europe’s dependence on external technologies also extends to the space sector, where many satellite capabilities continue to rely on systems developed outside the bloc.

Artificial intelligence remained at the centre of discussions. A conference held in Nicosia during the Presidency examined how member states can strengthen Europe’s technological capabilities and shape the next phase of AI development together.

Research Funding And Europe’s Next Framework Programme

Cyprus also helped move forward negotiations on the EU’s next research and innovation framework programme covering the 2028-2034 period.

Damianou described the discussions as particularly challenging because they required consensus among all 27 member states. He added that the programme is expected to have roughly double the budget of Horizon Europe, which currently stands at around €95 billion.

He said research funding is increasingly viewed as a strategic investment that supports industrial competitiveness, technological sovereignty and the retention of highly skilled talent.

Protecting Minors In A More Complex Digital World

Alongside legislative work, the Presidency also prioritised online child protection. Damianou said advances in artificial intelligence have made the digital environment more complex, increasing concerns about the safety of younger users.

Discussions focused on two key issues: setting appropriate minimum ages for access to online platforms and establishing more effective age-verification systems. He argued that relying solely on platforms to verify users’ ages has proved insufficient, as many services still depend largely on self-declaration.

Cyprus As A Showcase For Innovation

Beyond legislative work, Damianou said the Presidency provided Cyprus with an opportunity to present its own research and innovation ecosystem to European partners.

He said closer cooperation between Cypriot researchers, businesses and public officials and their counterparts across Europe was among the Presidency’s less visible but important achievements.

Cyprus also showcased ongoing work in medicine, artificial intelligence and digital technologies, reinforcing its ambition to become a regional hub for innovation, knowledge and international cooperation.

What Citizens Should Expect Next

What Citizens Should Expect Next

Looking ahead, Damianou said Cyprus will continue expanding its digital transformation agenda while placing greater emphasis on helping citizens make fuller use of services that are already available online.

He pointed to the recently launched online police service, which was used by around 850 people during its first week to obtain criminal record certificates electronically. At the same time, the long-awaited digital justice system has entered its pilot phase in cooperation with the Cyprus Bar Association and the judicial service, while additional digital projects are progressing for the Road Transport Department, the Deputy Ministry of Migration and the Registrar of Companies.

Work is also accelerating on the Digital Citizen initiative, with further developments expected over the next six months and throughout 2027. Although digital identity has already been used in elections, Damianou said wider adoption remains a priority.

He noted that around 42,000 citizens accessed online civil registry services over the past year to obtain documents such as identity cards and birth certificates. Even so, many people continue to visit citizen service centres for procedures that are already available digitally.

For Damianou, that highlights the next challenge: expanding digital services is no longer enough. Encouraging wider public awareness and greater confidence in using them will be equally important as Cyprus continues its digital transformation.

The broader objective, he added, is for Cyprus to contribute to a Europe with a stronger technological base while remaining open to international cooperation, a vision reflected in the Cyprus Presidency’s motto: “An autonomous Union, open to the world.”

The European Union is moving to close one of the most controversial loopholes in cross-border e-commerce. From July 1, the bloc will introduce a fixed €3 customs duty on low-value parcels imported from outside the EU, targeting the growing volume of online purchases from platforms such as Shein, Temu and AliExpress.

A Temporary Measure Targeting A Structural Problem

Under the new rules, parcels valued at less than €150 will be subject to the €3 charge. Until now, such shipments were exempt from customs duties under the EU’s de minimis threshold. Although they were still subject to VAT and customs declarations, they entered the bloc duty-free.

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Brussels argues that the system has become increasingly difficult to manage, putting European retailers at a competitive disadvantage while making it harder for customs authorities to enforce safety, environmental and consumer protection rules across billions of small imports.

How The €3 Duty Will Work

Rather than applying once per parcel, the charge will be based on customs classifications.

For example, a package containing a T-shirt and a pair of shoes would incur two separate €3 charges because they fall under different product categories. By contrast, several identical T-shirts shipped in the same parcel would normally attract a single €3 charge.

Designed as an interim solution, the measure is expected to remain in force from July 1, 2026, until July 1, 2028, although officials have left open the possibility of an extension if necessary.

Once the EU’s e-commerce customs data hub becomes operational, the temporary measure is expected to be replaced by the bloc’s standard customs tariffs.

Why Brussels Is Acting Now

Brussels introduced the measure following a sharp increase in low-value imports. EU data show that 4.6 billion low-value parcels entered the bloc in 2024, while almost 5.9 billion individual items were shipped directly from third countries to EU consumers in 2025.

Most of that trade is concentrated in China. According to EU figures, 91% of low-value shipments arriving in 2024 originated there, highlighting the growing influence of Asian e-commerce platforms on the European market.

Beyond competition concerns, EU institutions argue that the sheer volume of small parcels makes it increasingly difficult for customs and market surveillance authorities to verify compliance with European safety, environmental and consumer protection rules.

Particular scrutiny has focused on toys, cosmetics, electronics, food supplements and personal protective equipment sold directly to consumers through non-EU platforms.

Targeted inspections carried out across the EU in 2025 found that more than 60% of products checked in those categories failed to comply with EU standards because of issues such as missing labels, prohibited ingredients or inadequate safety documentation, according to the European Commission.

The Wider Policy Goal: Fairness, Safety And Enforcement

According to the Council of the European Union, the new measure is intended to address “unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns.”

More broadly, the initiative reflects a shift in Brussels’ approach. Rather than treating low-value e-commerce imports as a niche customs issue, policymakers increasingly view them as a broader challenge for market integrity, consumer protection and regulatory enforcement.

Who Pays The Charge?

Although the €3 duty applies to businesses, consumers could ultimately bear the cost if online platforms pass it on through higher prices, delivery fees or other charges.

According to the European Commission, the duty is not a tax on consumers. Legal responsibility rests with the declarant, such as the seller, importer, IOSS holder or their representative, while consumers are expected to become liable only in limited circumstances.

A separate handling fee is also being considered as part of the wider customs reform. The final amount is expected to be agreed before member states begin applying it, no later than November 1, 2026.

What It Means For Shoppers In Cyprus And Across The EU

For shoppers in Cyprus and elsewhere in the EU, the most noticeable impact will be on low-cost purchases from non-EU platforms. Small orders may become slightly more expensive, while parcels containing different categories of products could incur multiple €3 charges.

Timing will also be important. As with other imports from third countries, customs duties are generally determined when goods enter the EU customs system and are cleared, rather than when the order is placed.

A similar principle already applies to larger imports, including passenger vehicles imported into Cyprus from outside the EU. Customs charges arise when the vehicle enters the country and is cleared, with passenger cars generally subject to a 10% import duty and 19% VAT.

Simply placing an order before July 1 may therefore not be enough to avoid the charge if the parcel arrives and is cleared after the new rules take effect. The purchase date alone does not determine whether the duty applies.

For online shoppers, the practical assumption is straightforward: if a parcel from a non-EU country is released through EU customs on or after July 1, the new €3 charge may apply, even if it was ordered earlier.

How Platforms May Respond

Online retailers may seek to reduce the impact by importing goods into European warehouses in bulk before distributing them to customers. In that case, products would no longer enter the EU as individual low-value parcels, although they would still be subject to the standard customs procedures and duties that apply to larger commercial shipments.

One of the policy’s objectives is to encourage larger, more traceable consignments. That would allow customs authorities to inspect imports more efficiently instead of processing millions of individual parcels arriving through airports and ports across the bloc.

For the EU, the measure is intended to strengthen enforcement as much as raise revenue, giving customs authorities greater oversight of a system that has become increasingly difficult to manage.

Two natural gas fields in Cyprus’ exclusive economic zone have been declared commercially viable by ExxonMobil and QatarEnergy, marking an important step in the development of the island’s offshore energy resources.

A Milestone For Cyprus Offshore Development

The Pegasus and Glaucus fields, both located in Block 10 of Cyprus’ exclusive economic zone (EEZ), were formally declared marketable on Tuesday during a signing ceremony at the Presidential Palace in Nicosia attended by executives from ExxonMobil, QatarEnergy and the Cypriot government.

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President Nikos Christodoulides described the announcement as a strong vote of confidence in Cyprus’ offshore potential.

“It is clear evidence and a vote of confidence in the prospects of Cyprus’ EEZ, but also in the prospects of the eastern Mediterranean to develop as a potential energy corridor for Europe. We look forward to even more positive announcements in the near future,” he said.

Christodoulides also said discussions on additional offshore blocks are continuing.

“We are discussing more blocks in detail,” he said, expressing hope that further announcements would follow. He added that the presence of ExxonMobil and QatarEnergy has been one of the most significant developments for Cyprus’ energy sector in recent years.

From Exploration To Development

For ExxonMobil, the declaration marks the next stage of a process that began when Block 10 was awarded in 2017. John Ardill, the company’s vice president for global exploration, said the project progressed through the Glaucus discovery in 2019 and the Pegasus discovery in 2025 before reaching the current milestone.

“So, with all of that under our belt, we now reach the second milestone,” Ardill said. “It is very important to recognise the success of the exploration and this milestone of declaring marketability. This really takes us from energy exploration to energy development, which is a fundamentally different step.”

Ardill noted that ExxonMobil is currently active in Cyprus, Egypt and Greece, with drilling programmes under way across all three countries. In Cyprus, the company plans additional drilling later this year as part of the Pegasus appraisal programme.

A Wider Offshore Strategy

Energy Minister George Papanastasiou said the government intends to expand exploration activity further, including work in Blocks 4 and 10A, as Cyprus continues assessing the commercial potential of its offshore resources.

“We are very proud of this milestone, as well as our very strong partnership with QatarEnergy,” he said. “We discovered the Glaucus deposit in 2019, and Pegasus last year, and we are carrying out exploratory drilling to understand the subsoil, which now allows us to move with sufficient confidence towards declaring marketability. This is an important milestone.”

He said further appraisal drilling is expected later this year, followed by the front-end engineering and design (FEED) phase. A final investment decision is targeted for 2029, while first natural gas production is planned for 2033.

“We are committed to 2033, but we hope to move faster,” he said.

Infrastructure Options Under Review

Asked how the gas could ultimately reach international markets, Ardill said ExxonMobil is evaluating several development options. These include an onshore processing facility in Cyprus connected by pipeline to Egypt, the use of Egypt’s existing liquefied natural gas infrastructure, and floating LNG facilities.

He noted that floating LNG solutions are generally more expensive, while an onshore liquefaction plant would require substantially larger reserves than those identified to date. Based on current assessments, a pipeline to Egypt appears to be the most practical option, supported by existing infrastructure and ongoing cooperation between the Cypriot and Egyptian governments.

That approach is consistent with broader regional energy plans. Cyprus and Egypt have already signed agreements covering Block 6 of Cyprus’ EEZ with the TotalEnergies-Eni consortium, under which Cypriot gas is expected to be transported through Eni’s infrastructure to the SEGAS LNG terminal in Damietta for export.

What Comes Next

While the declaration of marketability marks an important milestone, several technical steps remain before drilling can begin in Blocks 4 and 10A. ExxonMobil said it will first reprocess existing seismic data to improve its understanding of the subsurface before moving ahead with future drilling programmes.

Cyprus recorded a general government fiscal surplus of €552.9 million during the first five months of 2026, according to preliminary figures released by the Cyprus Statistical Service (Cystat). Higher tax revenue and stronger social contributions helped offset continued growth in public spending.

Revenue Growth Outpaced Spending

The surplus for the January-to-May period amounted to 1.4% of gross domestic product, compared with €544.5 million, or 1.5% of GDP, in the corresponding period of 2025.

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Total government revenue increased by €282.5 million, or 4.8%, reaching €6.2 billion from €5.92 billion a year earlier.

Income Tax, VAT And Contributions Drive Gains

Taxes on income and wealth recorded the largest increase, rising by €115.2 million, or 8.4%, to €1.49 billion. Social contributions also posted solid growth, climbing by €102.2 million, or 5.2%, to €2.07 billion.

Revenue from taxes on production and imports rose by €93.1 million, or 4.9%, to €2.00 billion. Within that category, net VAT receipts increased by €138 million, or 11.0%, to €1.39 billion.

Additional support came from capital transfers, which rose to €38.8 million from €12.4 million, and from the sale of goods and services, which increased by €9.4 million to €433.2 million.

Those gains were partly offset by lower property income, which declined by €24.2 million to €68.5 million, and a €39.6 million fall in current transfers to €115.7 million.

Expenditure Continues To Expand

Government expenditure rose by €274.1 million, or 5.1%, to €5.65 billion, compared with €5.38 billion in the same period of 2025.

Intermediate consumption increased by €52 million to €590.3 million, while compensation of employees, including imputed social contributions and civil servants’ pensions, rose by €47.6 million to €1.64 billion.

Social benefits recorded the largest increase in absolute terms, climbing by €108.2 million, or 4.9%, to €2.31 billion. Interest payments also rose significantly, increasing by €32.3 million, or 15.7%, to €238.4 million.

Current transfers climbed by €70.5 million, or 19.6%, reaching €429.3 million.

Capital Spending Softens

Capital expenditure moved in the opposite direction, falling by €26.8 million, or 6.0%, to €418.7 million. Gross capital formation declined by €25.4 million to €327.7 million, while other capital expenditure edged down to €90.9 million. Subsidies also decreased, dropping by €9.6 million to €31.8 million.

Preliminary Data Carry Caveats

Cystat noted that the figures remain preliminary, with estimates used for several general government entities, particularly within the local government subsector, as complete data had not yet been submitted by the relevant authorities.

Hotel occupancy across the city and district of Paphos is running around 20% below the same period last year, according to Cyprus Hotels Association (PASYXE) President Thanos Michaelides.

Speaking to the Cyprus News Agency, Michaelides said the decline is particularly noticeable during the peak summer months of June, July and August, when hotels would normally expect occupancy to exceed 90%. This year, however, average occupancy is hovering at around 70%.

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Last-Minute Bookings Are Helping, But Not Enough

Michaelides said bookings have picked up in recent weeks, supported mainly by last-minute reservations. While the trend has eased some of the pressure on the sector, it has not been enough to restore occupancy to typical seasonal levels.

Industry Response Focuses On Local Demand And Value

Hotels are responding by placing greater emphasis on the domestic market, rolling out targeted promotional offers and maintaining high service standards to attract both local and international visitors.

Michaelides expressed confidence that these efforts will help sustain demand through the remainder of the summer as the sector continues working to recover from earlier losses.

Cyprus entered 2026 with a weaker external position, as the country’s current account deficit widened in the first quarter and its international investment position deteriorated, according to preliminary data released on Tuesday by the Central Bank of Cyprus (CBC).

Deficit Worsens Amid Softer Services Performance

The current account deficit widened to €1.27 billion in the first quarter of 2026 from €1.01 billion a year earlier, an increase of €263 million. Excluding special purpose entities (SPEs), the deficit reached €1.37 billion, compared with €1.12 billion in the first quarter of 2025.

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According to the CBC, the deterioration was driven mainly by a larger secondary income deficit and weaker net exports of services. Financial services, telecommunications, computer services and information services all weighed on the balance, although the impact was partly offset by an improved goods balance and a narrower primary income deficit.

Financial Flows Remain Positive

Despite the weaker current account position, Cyprus recorded net financial inflows of €1.14 billion during the quarter, exceeding the level reported a year earlier. The increase reflected a smaller net outflow in portfolio investment together with stronger net inflows under other investment, the CBC said.

External Balance Sheet Weakens

Cyprus’ international investment position also deteriorated during the quarter. The country’s net liability position widened to €28.31 billion at the end of the first quarter from €28.17 billion three months earlier.

After excluding SPEs, net liabilities increased to €10.03 billion from €8.93 billion at the end of 2025. Gross external debt rose to €226.66 billion from €225.19 billion, while external debt assets edged down slightly to €223.53 billion from €223.62 billion. As a result, net external debt increased by €1.57 billion to €3.14 billion.

Excluding SPEs, gross external debt stood at €59.94 billion, up from €59.18 billion at the end of 2025. Over the same period, net external debt improved slightly to minus €30.46 billion from minus €30.95 billion.

Trade Links Show Mixed Picture

The CBC reported current account surpluses with Germany and Russia during the first quarter, while deficits were recorded with Greece, the United Kingdom and the United States.

At the regional level, Cyprus narrowed its current account deficits with both the European Union and the euro area, providing a modest offset to the broader weakening in the country’s external balance.

Cursor is expanding its AI coding platform to mobile devices with the launch of Cursor Mobile, allowing users to prompt coding agents directly from their smartphones.

Announced on Monday, the app builds on the Cursor 2.0 redesign introduced in October, which shifted the platform’s focus toward autonomous coding agents rather than a traditional code editor. Users can launch new agents or continue conversations started on desktop.

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A Mobile Interface For A Changing Workflow

The launch reflects a broader shift in AI-assisted software development. As coding agents become increasingly capable of handling implementation tasks, developers are spending less time navigating large codebases and more time reviewing, guiding and supervising AI-generated work.

That evolution also makes mobile devices a more practical interface. They are well suited to reviewing progress, sending prompts and managing ongoing workflows, even when the underlying development is taking place remotely.

Cursor is not alone in moving in that direction. Anthropic and OpenAI have also introduced mobile experiences for their coding products, signalling that competition is extending beyond model performance and editor integration to the overall developer workflow.

The Shift From Editing To Orchestration

For years, professional development tools were built around the assumption that developers would spend most of their time writing and editing code on desktop computers. AI coding agents are beginning to change that dynamic by taking on more of the implementation work, allowing developers to focus increasingly on directing, reviewing and refining outputs.

Anthropic’s Claude Code lead, Boris Cherny, recently described how dramatically his own workflow has changed.

“Most of my coding now is on my phone,” Cherny said. “I would have said ‘you’re crazy’ if you told me that six months ago, but yeah, here we are.”

Why The Mobile Bet Matters

Cursor’s latest release expands access to its AI coding agents beyond the desktop, reflecting broader changes in how developers interact with AI-powered tools. As coding increasingly involves prompting, reviewing and coordinating AI-generated work, mobile devices are becoming another way to stay connected to software projects throughout the development process.

Google is expanding access to one of Gemini’s AI features, making personalized image generation powered by Nano Banana available free of charge to all eligible users in the United States. Previously, the capability was limited to Gemini Plus, Pro and Ultra subscribers.

Personalization Reaches A Wider Audience

The feature launched in April as part of Gemini’s Personal Intelligence offering, which is designed to generate images based on a user’s interests and preferences. Instead of relying solely on detailed prompts, Gemini can draw on information from a user’s Google ecosystem to tailor image requests.

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For example, users can ask Gemini to “create an illustration of me and my favorite things,” with the system using information from connected services such as Gmail, Google Photos, YouTube and Search to personalise the result.

Google Photos Expands Image Generation

The feature can also access images stored in Google Photos, allowing users to generate personalised content without uploading reference photos manually.

Google first introduced Personal Intelligence to U.S. users in March before expanding the feature to India and Japan. The rollout of Nano Banana-powered image generation extends those capabilities to a broader group of users.

Users Remain In Control

According to Google, Personal Intelligence is an opt-in feature, allowing users to decide which Google apps Gemini can access. Once enabled, it becomes the default setting for relevant prompts, although it can be turned off at any time through the Tools menu.

Gemini Expansion Continues

The latest update comes as Google continues to expand Gemini’s capabilities. Last month, the company announced several upcoming additions, including a Daily Brief feature, a redesigned interface, access to the Gemini Omni video model, and a personal AI agent called Gemini Spark.

Earlier this year, Google also said Gemini had surpassed 750 million monthly active users, highlighting the platform’s growing adoption.

Alpha Bank has confirmed a cash dividend for shareholders following approval at the lender’s annual general meeting held on June 26, 2026.

The board approved a total distribution of €148,005,238.21 from internal dividend reserves and other non-taxed profits. Based on the bank’s share count, shareholders will receive a gross dividend of €0.0655980839 per share, excluding the 59,018,043 treasury shares held by the bank.

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A Full-Year Payout Built On Stronger Capital Returns

The latest payment follows an interim dividend of €111,388,046.88 distributed in December 2025. Combined, the total profit distribution for the 2025 financial year stands at €259,393,285.09, underscoring Alpha Bank’s intent to return capital to investors in a structured, predictable way.

The dividend will be subject to a 5% withholding tax under Greek tax law, leaving a net cash payment of €0.0623181797 per share.

Key Dates For Investors

The bank has set July 1, 2026, as the ex-dividend date. From that session onward, shares will trade on the Euronext Athens without the right to the payout. The record date for identifying eligible shareholders is July 2, 2026, while payment is scheduled to begin on July 8, 2026.

Distributions will be processed through the bank’s designated paying agents and the participants in the Dematerialised Securities System.

Special Cases And Unclaimed Dividends

Alpha Bank also noted that legal heirs of deceased shareholders, as well as holders of securities linked to institutions under liquidation, should contact the bank directly to complete the necessary procedures.

The right to collect the dividend will expire five years after the end of the year in which the entitlement was established. Any unclaimed amounts will then revert to the Greek State.

Alpha Bank’s announcement reflects the disciplined capital-return approach increasingly favored by European lenders as they balance profitability, regulatory requirements and shareholder expectations.

For more information, visit Alpha Bank.

Global mergers and acquisitions are on track for a strong rebound, with annual deal value projected to reach $4 trillion in 2026, according to a new report from PwC. If realised, that would mark the market’s strongest performance since 2021.

Mega Deals Are Reclaiming The Market

PwC attributes the rebound largely to a surge in transactions valued at more than $5 billion. So far this year, those mega deals have accounted for nearly half of global deal value, up from 39% in 2025 and 26% in 2024.

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The firm expects the value of these transactions to grow by 40% annually through 2026 if current momentum continues.

“2026 is the year of super-sized mergers and acquisitions,” said Brian Levy, leader of PwC US’ global deals sector. He added that artificial intelligence is accelerating mega deals, reshaping capital flows and changing the competitive landscape across industries.

AI Emerges As A Key Acquisition Driver

According to PwC, companies are increasingly pursuing acquisitions to strengthen their artificial intelligence capabilities.

Recent transactions illustrate that trend. SpaceX has completed a $60 billion acquisition of the AI startup Cursor, while Salesforce has agreed to acquire the AI-powered customer service platform Fin for $3.6 billion. Qualcomm is also reportedly in discussions to acquire Modular in a deal that could value the AI chip company at around $4 billion.

Mid-Market Buyers Face A More Difficult Climate

While the largest transactions continue to gain momentum, PwC said many mid-market investors remain constrained by geopolitical uncertainty, valuation gaps, slower economic growth, higher inflation, elevated interest rates and a backlog of private capital exits.

Those factors continue to weigh on smaller and mid-sized transactions, even as larger companies pursue strategic acquisitions.

Private Markets May Become More Liquid

PwC also said artificial intelligence has the potential to improve liquidity in private markets by making asset evaluation and deal negotiations more efficient.

If global M&A activity reaches $4 trillion in 2026, it would represent an increase of at least 13% from 2025 and the second-highest annual deal value since 2021.