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Cyprus Forms Strategic Alliance With Nordic And Alpine Donors For Sustainable Future

by THEFUTURE.TEAM

November 10, 2025

The Republic of Cyprus has entered a strategic phase with the signing of a memorandum of understanding with key donor states—Iceland, Liechtenstein, and Norway—under the European Economic Area and Norwegian grant framework for 2021–2028. In a recent address in Nicosia, Finance Minister Mákis Keravnos emphasized that this milestone marks a long-standing and fruitful collaboration that reflects a robust commitment to mutual development.

European Solidarity And A Vision For Inclusive Development

Minister Keravnos highlighted that the EEA and Norwegian grants are not merely financial injections—they are a tangible manifestation of European solidarity and shared responsibility. The strategic support is designed to bolster Cyprus’s efforts to cultivate a resilient and inclusive society, converting potential challenges into sustainable opportunities for all its citizens. This approach underscores a forward-thinking strategy reminiscent of transformative business models that turn adversities into competitive advantages.

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Enhanced Social And Environmental Impact

During the previous programming period, these grants were instrumental in funding projects across environmental and social sectors, including environmental conservation, renewable energy initiatives, social inclusion measures, and support for vulnerable groups. The new funding phase will focus sharply on the green transition, addressing critical areas such as water scarcity, digital transformation, public health, and social cohesion—cornerstones for the prosperous future of both Cyprus and Europe.

Beyond Financial Support: Knowledge Transfer And Collaborative Growth

Minister Keravnos noted that the true value of these grants extends beyond mere monetary support. They facilitate the transfer of expertise, foster robust dialogue, and enable the exchange of experiences among institutions and communities. This innovative model of cooperation—driven by the programs of the EEA and Norway—empowers institutions, professionals, and local communities to evolve collectively towards a unified European vision.

Acknowledging The Dedication Of Donor Nations And Local Stakeholders

Expressing gratitude on behalf of the Cypriot government, Minister Keravnos commended the governments of Norway, Iceland, and Liechtenstein, as well as the Funding Mechanism Office, for their sustained support and commitment to shaping common European goals. He also acknowledged the pivotal role played by Cypriot institutions, ministries, civil society organizations, and other stakeholders whose professionalism and dedication are ensuring the successful implementation of these transformative projects.

Securing A Sustainable And Resilient Future

In his closing remarks, Minister Keravnos reiterated that the shared objective is to ensure that the projects financed under these memoranda deliver long-lasting and tangible impacts. Such outcomes will reinforce the foundations of a greener economy, more cohesive communities, and a resilient society. By transforming common values into measurable results, Cyprus, its donor partners, and Europe as a whole set a benchmark for collaborative progress and sustainable economic development.

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Cyprus Records EU’s Largest Quarterly Drop In Public Debt Ratio

by THEFUTURE.TEAM

October 21, 2026

Cyprus recorded the European Union’s largest quarterly decline in government debt as a share of GDP in the second quarter of 2026, as its debt burden continued to fall while borrowing levels across the bloc increased, according to Eurostat.

Debt Ratio Falls To 48.5%

Cyprus’ government debt fell to 48.5% of GDP at the end of June, down from 51.5% in the first quarter and 58.1% a year earlier.

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In absolute terms, debt declined to €19.2 billion from €20.03 billion at the end of March and €21.7 billion in June 2025. Cyprus also recorded the EU’s second-largest annual reduction in its debt-to-GDP ratio, after Greece.

Cyprus Outpaces Other EU Member States

Greece recorded the largest annual decline, at 11.2 percentage points, followed by Cyprus at 9.5 points, Slovenia at 4.5 points and Portugal at 3.4 points.

Quarterly, Cyprus led the bloc, ahead of Greece, where the ratio fell by 2.7 percentage points, and Hungary, which recorded a 2-point decline.

By contrast, the EU’s debt-to-GDP ratio increased to 82.9% in the second quarter from 82.5% in the first. The euro area ratio rose to 88.8% from 88.4%. Compared with the same period in 2025, the figures increased from 81.4% and 87.3%, respectively.

Debt Levels Remain High Across Europe

Greece had the EU’s highest debt ratio at the end of June, at 140.8% of GDP, followed by Italy at 139.9%, France at 119.1%, Belgium at 110.2% and Spain at 101.4%.

The lowest ratios were recorded in Estonia at 26.1%, Denmark at 27.1%, Luxembourg at 28.2% and Bulgaria at 28.7%.

Compared with the first quarter, debt ratios rose in 15 member states and fell in 10, while the Netherlands and Spain remained unchanged. Poland recorded the largest quarterly increase, at 3 percentage points.

Cyprus Maintains A Government Surplus

Cyprus’ debt reduction comes alongside a strong fiscal position. In 2025, the country recorded a government surplus of 3.6% of GDP, the highest in the EU, according to audited figures published by Cystat and Eurostat. Government debt at the end of that year stood at €20.05 billion, or 52.3% of GDP.

However, Cyprus’ seasonally adjusted government surplus narrowed to 3.3% of GDP in the second quarter of 2026, from 3.8% in the first quarter.

The figures come from Eurostat’s latest government deficit and debt release, based on member states’ second 2026 notifications under the EU’s Excessive Deficit Procedure and compiled under the European System of Accounts 2010 methodology.