Cypriot Government Weighs €25 Million Payment for Strategic Energy Interconnector Amid Viability Concerns

by THEFUTURE.TEAM

August 28, 2025

Government Weighs Financial Commitment

The Cypriot government is currently evaluating the prospect of channeling a €25-million payment to Greece’s independent transmission system operator, Admie, as part of the financial framework for the Great Sea Interconnector project. This ambitious initiative aims to eventually link the energy grids of Cyprus, Greece, and Israel, a move that could significantly reshape regional energy dynamics.

Balancing Financial Viability With Strategic Ambition

Finance Minister Makis Keravnos emphasized that while the financial commitment under consideration could pave the way for reduced energy prices in the long term, the project’s financial viability remains under close scrutiny. “Many aspects of the issue must be ensured,” Keravnos stated, stressing that the project must secure its financial fundamentals before any significant financial obligations are undertaken.

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Technical and Strategic Hurdles

Despite the Cyprus Energy Regulatory Authority’s (Cera) preliminary approval of the €25-million arrangement—the first of five annual payments—Keravnos noted that the decision is still mired in uncertainties. Other governmental departments are currently addressing the technical issues that could impact the project’s overall implementation, including incomplete seabed surveys crucial for determining the optimal routing and costs associated with laying submarine cables.

Consumer Impact and the State Aid Conundrum

Keravnos expressed concerns about transferring costs to taxpayers and consumers alike. The initial plan was to use funds from the European Union’s Emissions Trading System (ETS) to finance the payments. However, Admie raised alarms that such an approach might contravene EU state aid regulations, potentially forcing the energy regulatory body to shift the burden onto consumers. “Taxpayers’ money will be paid so that consumers do not have to pay, but all taxpayers are also consumers,” Keravnos remarked, highlighting the inherent complexities of the proposal.

Next Steps and the Road Ahead

Ultimately, the government’s stance hinges on tangible progress in project implementation. Should the Great Sea Interconnector move forward with more definitive technical milestones, the government might reconsider its current caution. Until the essential surveys and subsequent assessments provide clear cost projections, policymakers remain hesitant to fully endorse the proposed financial arrangement.

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Cyprus President Champions Domestic Defence Industry For National Security And Economic Growth

by THEFUTURE.TEAM

February 18, 2026

Government Commitment To Strengthen National Defence

The President of the Republic, Nikos Christodoulidis, reaffirmed the government’s intention to enhance the country’s deterrence capabilities while expanding the potential of the domestic defense industry. Speaking during a high-level meeting at the Presidential Palace with members of the Cyprus Defence Industry Council, he outlined a strategy that connects national security priorities with long-term economic development.

Performance Assessment And Strategic Objectives

In the presence of Defence Minister Vasilis Palmas, the meeting focused on evaluating the achievements of the council one year following its establishment and delineating the path ahead. The President recalled, “Last year, we decided to institutionalize the Cyprus Defence Industry Council. Today, we review our targets and assess what has been achieved and what remains pending. We discussed the need for a registry of Cypriot companies. It is crucial to amplify the international presence of our enterprises. I remain deeply confident in your capabilities,” emphasizing a performance-driven approach aimed at enhanced operational transparency and market expansion.

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Positioning The Industry As A New Economic Pillar

President Christodoulidis expressed his firm belief that the Cypriot defence industry could emerge as a significant economic driver. He described it as a “promising new pillar” for the nation’s economy, bolstered by European initiatives such as the SAFE framework, supplementary equipment procurement plans from third countries, and participation in international trade exhibitions. Such strategies, he noted, open up further opportunities for local businesses to integrate into the global arms market.

International Outreach And Future Economic Impact

The President also pledged active support at an international level, citing his positive response to an invitation to Athens to engage in initiatives aimed at enhanced exposure and collaboration. He was confident that the industry’s contribution could realistically reach a double-digit share of Cyprus’ GDP in the coming years, a target he described as not only ambitious but entirely attainable given current capabilities.

Clear Vision For Measurable Progress

Concluding the meeting, President Christodoulidis reaffirmed his commitment: “I am fully aware of your potential. This is an emerging sector critical to both our economic future and our national security. Today, I expect us to review our concrete achievements, address the areas requiring improvement, and steer this initiative toward even greater success.” This decisive call for accountability and action underscores a broader strategic agenda that intertwines national defence imperatives with forward-looking industrial and economic policies.

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