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Cyprus Business Chamber Warns Bank Tax Threatens Investor Confidence

by THEFUTURE.TEAM

February 12, 2026

Chamber Issues Stern Warning Against Bank Tax

The Cyprus Chamber of Commerce and Industry (Keve) has issued a forceful statement opposing the proposed imposition of additional taxation on banks. The chamber argues that further levies would be economically unsound and send a negative signal to international investors.

Heavy Tax Burdens And Their Impact

Keve highlighted that banks have already contributed significant tax revenues between 2017 and 2024, reporting €285 million in corporate tax and €470 million in special levies on deposits. This cumulative contribution of €755 million has supplied the state with ample resources to support borrowers and vulnerable groups, rendering any extra tax unnecessary.

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Risks To Financial Stability And Investor Confidence

The chamber stressed that using taxation as a tool of social policy is inappropriate. Targeting banks, which are a key pillar of the economic framework, could undermine the predictability and stability of Cyprus’s tax and institutional environment. In a climate where investor confidence is paramount, such a strategy risks weakening the country’s credibility on the international stage.

Broader Implications For Monetary And Lending Policies

Concerns extend beyond immediate fiscal impacts. The European Central Bank (ECB) has warned that increased taxation based on customer deposits may disrupt the transmission of monetary policy, impacting credit institutions’ ability to maintain appropriate capital buffers and set competitive lending rates. Using Belgian banks as an example, the ECB noted that even well-capitalized institutions might face procyclical pressures, potentially restricting lending to households and firms.

Setting A Precedent With Lasting Consequences

In addition to domestic concerns, Keve cautions that targeting a specific sector could set a dangerous precedent. Diverging from the policy recommendations of the International Monetary Fund and the European Stability Mechanism, such a move distinguishes Cyprus from high-credit rating EU member states like Germany and the Netherlands, which do not impose extraordinary sector-specific charges.

Looking Ahead: Balancing Social Objectives With Economic Stability

While Keve supports well-targeted social support measures, it insists that these initiatives must not compromise financial stability, investor confidence, or Cyprus’s international competitiveness. The chamber further called on all businesses to contribute to society through robust corporate social responsibility programs.

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EU Services Production Grows As Information And Communication Lead

by THEFUTURE.TEAM

November 10, 2026

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.