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Cyprus And Greece Advance Cable Interconnection Project With Strategic Investment In Focus

Cyprus and Greece have taken decisive measures to update the economic and technical parameters of their key cable interconnection project, paving the way for the injection of strong new investors. This strategic decision was jointly announced by the President of the Republic of Cyprus, Nikos Christodoulidis, and the Greek Prime Minister, Kyriakos Mitsotakis, following their third intergovernmental meeting.

Strengthening Bilateral Commitment In Energy And Beyond

The updated parameters underscore a robust strategy to enhance energy connectivity and stimulate economic growth. Both leaders reiterated their joint determination to reinitiate talks aligned with UN resolutions, with Christodoulidis expressing gratitude for Greece’s steadfast partnership, and Mitsotakis noting that the onus now lies with others to demonstrate a genuine intent to restart negotiations.

Coordinated Policy Advances Across Strategic Sectors

Beyond the energy sector, the discussions extended to critical areas such as environmental management, digital safety, and emergency preparedness. The Cyprus President highlighted impressive progress made in the two years since the establishment of a dedicated intergovernmental dialogue, emphasizing sustainable water resource management and advancements in desalination technologies. Additionally, Greece’s initiative to pioneer deepwater drilling within the Ionian Sea in the coming months further illustrates the commitment to forward-thinking energy solutions.

Unified Vision For Regional Stability And Security

The meeting reaffirmed that the strong alliance between Athens and Nicosia remains a pillar of stability in a volatile region. Both countries are coordinating closely on foreign policy initiatives, including Cyprus’s anticipated integration into the Schengen zone and the implementation of a New Mediterranean Pact. At the center of these efforts is an unwavering commitment to resolving the longstanding division of Cyprus in accordance with UN Security Council resolutions and established international law.

Positioning As Pillars Of European Energy Security

Prime Minister Mitsotakis pointed to recent agreements with major American companies that bolster Europe’s energy security from the Mediterranean to Eastern Europe, illustrating the strategic reach of their partnership. These developments, alongside the recalibrated cable project, highlight the significant role both nations play in the broader European energy landscape.

The initiative reflects not only a technical and economic update but a reaffirmation of Cyprus and Greece’s role as proactive leaders in regional security and economic prosperity. The integration of robust investor interest into this crucial energy infrastructure project underlines the future-facing vision of both governments.

Watch the joint statements by Prime Minister Kyriakos Mitsotakis and President Nikos Christodoulidis in the video below:

Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal MeasureJanuary–September 2025January–September 2026
Total revenue€11,353.9 million€12,091.8 million
Total expenditure€10,186.2 million€10,482.1 million
Government surplus€1,167.6 million€1,609.7 million
Surplus as a share of GDP3.0%4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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