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Cyprus Advances EU Digital And Innovation Agenda During Council Presidency

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.

“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.”

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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