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Cyprus EU Presidency: Steering Sustainable Ocean Recovery For Europe

Strategic Moment For Marine Policy

As Cyprus assumes the rotating presidency of the Council of the European Union, industry experts and environmental advocates alike see a pivotal opportunity to shape the future of EU marine policy. Leading conservation group Oceana is urging the island nation to cement decades of progress in rebuilding fisheries and to embed ocean health as a strategic pillar for EU security, climate resilience, and sustainable livelihoods.

Policy Framework And Legislative Priorities

Since its inception in 2001, Oceana has championed science-based campaigns to combat overfishing, reduce plastic pollution, and preserve critical marine habitats worldwide. The organization emphasizes that the first half of 2026 will be crucial for finalizing fisheries legislation and establishing a coherent framework that protects both marine ecosystems and the communities they support.

Key initiatives include the evaluation of the Common Fisheries Policy (CFP) by the European Commission, the development of the EU Ocean Act, the publication of a 2040 vision for EU fisheries, and efforts to enforce internationally agreed marine protection targets while curbing illegal fishing practices.

Economic And Environmental Imperatives

Vera Coelho, Oceana’s executive director and vice president in Europe, has described Cyprus as being “on the frontline of the devastation caused by climate change and the depletion of fish stocks in the Mediterranean.” As both a Mediterranean island and the home country of the European Commissioner for Fisheries and Oceans, Costas Kadis, Cyprus stands at a unique juncture. This dual role presents an opportunity—and a significant responsibility—to spearhead a transformative agenda in ocean policy over the coming decade.

Coelho warns that the hard-fought gains in ocean recovery are now at risk, cautioning against a “simplification” agenda driven by industrial lobbies. Such policies could undermine the sector’s recovery, jeopardizing food security, employment, and resilience in the face of the climate crisis.

Strategic Call To Action

Oceana is calling on the Cypriot Presidency to lead Council discussions that support the establishment of an Ocean Act to harmonize EU marine policies, enforce new measures, and incorporate internationally agreed targets into EU law. The organization advocates for securing the implementation of the CFP, accelerating the transition to low-impact fishing methods, rebuilding fish populations, and eliminating destructive practices in marine protected areas and deep Mediterranean waters. Additionally, it suggests revising the Common Market Organisation regulation to ensure consumer transparency for all seafood products.

In a period marked by geopolitical uncertainty, maintaining robust and coherent environmental policies is essential. Any delay or dilution of critical legislation not only risks reversing environmental recovery but also erodes the EU’s regulatory certainty and its overall strategic advantage. For European coastal communities, these policies are not just environmental imperatives—they are vital to securing a resilient and independent blue economy.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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