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Cypriot Bonds Held By The Eurosystem Decline To €6.38 Billion

The European Central Bank’s ongoing efforts to deleverage its balance sheet have led to a significant reduction in the value of Cypriot sovereign bonds held by the Eurosystem. As of mid-August 2024, these bonds, which are part of the Public Sector Purchases Programme (PSPP) and the Pandemic Emergency Purchases Programme (PEPP), have declined to €6.38 billion, representing 28% of Cyprus’ public debt. This reduction aligns with the ECB’s broader strategy to curb inflation by reducing market liquidity, including ending reinvestments in its Asset Purchase Programme (APP).

The Eurosystem’s bond holdings in Cyprus are split between two key programmes: the Public Sector Purchases Programme (PSPP) and the Pandemic Emergency Purchases Programme (PEPP). The PSPP portfolio has seen a reduction to €3.99 billion, driven by the redemption of maturing bonds worth €304 million. This portfolio’s weighted average maturity now stands at 7.62 years. Meanwhile, the value of Cypriot bonds held under the PEPP has also declined to €2.39 billion, with cumulative net purchases dropping by €76 million in July alone.

The ECB’s approach is part of its restrictive monetary policy cycle, aimed at curbing inflation across the Eurozone. In a decisive move in August 2023, the ECB announced the discontinuation of reinvestments under the wider Asset Purchase Programme (APP), of which the PSPP is a part, from July 2023 onwards. This decision is a clear signal of the ECB’s intent to reduce liquidity in the market, a strategy that complements its broader efforts to tighten monetary conditions and manage inflationary pressures.

The implications of this policy for Cyprus are significant. With Cypriot bonds held by the Eurosystem now accounting for 28% of the country’s public debt, the reduction in ECB support could exert upward pressure on Cyprus’s borrowing costs. This scenario may necessitate more robust fiscal policies from the Cypriot government to maintain financial stability.

Looking ahead, the ECB has outlined its plans to continue reducing the PEPP portfolio by €7.5 billion per month on average during the second half of 2024, with a complete discontinuation of reinvestments by the end of the year. This signals a continued tightening of monetary policy that will likely impact not just Cyprus but all Eurozone economies.

Cloudflare Sets New Default To Separate Search Crawlers From AI Bots

Cloudflare has drawn a sharper line between traditional search and artificial intelligence.

Beginning September 15, 2026, the company will change its default settings to block so-called mixed-use crawlers from pages that run ads, unless a site owner chooses otherwise. The policy applies to new Cloudflare customers, new sites created by existing customers, and all current free customers.

A Clearer Divide In Web Access

The shift could materially reshape how AI companies collect web data for model training and agentic products. Cloudflare’s central argument is straightforward: most publishers want their content to remain visible in search and accessible through certain AI services, but they do not want that same material repurposed without compensation.

In Cloudflare’s view, the problem is not crawling itself. It is the blending of three different functions: search, agentic use, and training into a single bot that makes it difficult for website owners to set meaningful boundaries.

The Google Question

Cloudflare pointedly referenced the “world’s largest search engine,” an unmistakable nod to Google, arguing that it has access to roughly twice as much information as rival AI companies because it makes it harder for customers to stay discoverable without also being used for AI.

Google has disputed that framing. The company offers Google Extended, a crawler setting that lets publishers opt out of having content used for training and AI products such as Gemini apps and Vertex AI, without affecting visibility in Google Search. At the same time, Googlebot still crawls for Search and for AI-powered features such as AI Overviews and AI Mode.

Publishers Want Reach, Not Exploitation

Matthew Prince, Cloudflare’s co-founder and chief executive, said the company is moving quickly because the internet is now dominated by machine traffic.

“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” Prince said, referring to the recent milestone in which bots surpassed human traffic online sooner than expected.

Prince added that Cloudflare’s tools and partnerships are designed to give publishers more visibility and commercial leverage, while also rewarding AI companies that are transparent about how they use content.

From Pay Per Crawl To Pay Per Use

Cloudflare has increasingly positioned itself as a gatekeeper for publishers looking to assert control in the AI era. The company already offers tools to block AI bots, along with a marketplace called Pay Per Crawl, which lets websites charge AI systems for scraping.

That framework is now expanding into Pay Per Use, which Cloudflare says will allow publishers to charge AI companies when content creates value, not merely when it is fetched. In practical terms, that shifts the economics from extraction to monetization.

Cloudflare says the move may also reduce waste. Its data suggests more than half of crawl traffic from AI bots is spent revisiting pages that have not changed, consuming bandwidth and compute without adding fresh value for either side.

Early Partners Signal The Commercial Model

To launch the new system, Cloudflare is working with Ceramic.ai and You.com. Under the opt-in model, publishers can be paid when their content appears in Ceramic’s AI search results or when You.com accesses premium material.

Cloudflare says other AI companies can adapt the model to fit their own products. The broader message is clear: the era of unrestricted crawling is giving way to one in which access, attribution, and compensation are increasingly negotiated rather than assumed.

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