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Cyprus Eyes Schengen: Business Leaders Make The Case For Accession

by News Editor

April 10, 2025

Cyprus is accelerating its bid to join the Schengen Area—a move seen as a game-changer for investment, trade, and business mobility. Currently one of only two EU nations outside the passport-free zone alongside Ireland, the island is positioning itself for accession, with President Nikos Christodoulides setting a target for technical readiness by 2025.

For the country’s business community, this is more than a geopolitical milestone—it’s an economic imperative. Industry leaders argue that Schengen membership would remove barriers, enhance Cyprus’ competitiveness, and bolster its standing as a regional business hub.

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A Gateway For Investors And Entrepreneurs

Schengen membership is regarded as a pivotal step in strengthening Cyprus’s appeal as a business hub. The ability to move freely across European markets without additional visa requirements would provide a significant advantage for companies based on the island. This would facilitate investment, attract multinational corporations, and make Cyprus a more attractive destination for businesses seeking a strategic foothold in the EU.

Beyond simplifying travel for executives and professionals, accession would also enhance opportunities for non-EU nationals working in Cyprus. Gaining broader mobility across the Schengen area would improve Cyprus’s standing in the tech and startup ecosystem, making it easier for international talent to relocate and operate within the region.

Overcoming Hurdles, Unlocking Opportunities

Concerns over border management, particularly along the Green Line, have been a longstanding issue in Schengen discussions. However, improvements in security and regulatory compliance have positioned Cyprus closer to meeting Schengen’s technical criteria. Accession would further integrate the country into the European economic framework, reinforcing its alignment with EU standards.

Remaining outside Schengen presents a competitive disadvantage, making it harder to attract investors who prioritize ease of access within the EU. With competing jurisdictions offering seamless movement, Cyprus risks losing out on potential business and economic growth. Schengen membership would eliminate these barriers, enhancing the island’s attractiveness for companies looking to expand their European footprint.

The Path Forward

The message from Cyprus’ business leaders is clear: Schengen accession isn’t just a policy goal—it’s a necessity. As the government works to meet the technical criteria, industry stakeholders continue to push for progress, knowing that the island’s economic trajectory depends on it. With 2025 on the horizon, the race to join Schengen is not just about open borders—it’s about unlocking Cyprus’s full potential on the European and global stage.

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

by THEFUTURE.TEAM

June 26, 2026

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.

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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.