Cyprus Leverages European B2B Platform And Strategic Funding To Bolster Its Defense Industry

by THEFUTURE.TEAM

September 30, 2025

Cyprus is poised to accelerate the evolution of its defense industry by harnessing two pivotal initiatives—a robust European B2B platform and groundbreaking financial instruments—designed to drive innovation and reinforce national security.

Connecting With The European Defense Ecosystem

The Ministry of Defense has underscored the importance of the European Defense Agency’s B2B platform. This state-of-the-art network links domestic defense companies with a broad ecosystem of EU member states, facilitating the identification of collaborative opportunities in projects and funding initiatives, including the European Defence Fund (EDF). Such initiatives not only enhance interconnectivity but also provide a strategic conduit for enterprise expansion in critical defense sectors.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Ensuring Compliance And Operational Excellence

The platform maintains strict eligibility criteria, welcoming only those industries and research institutions established within the EU and operating free from external control in sensitive areas such as intellectual property rights, supply chain integrity, and export controls. By enforcing these rigorous standards, the initiative ensures that all participants are well-equipped to engage in high-level defense collaborations.

Harnessing SAFE Funding For Strategic Growth

In parallel, the government is actively leveraging the new European SAFE funding tool to invigorate the Cypriot defense sector. This strategic move aims to create employment opportunities, attract investment, and enhance national deterrence capabilities. Nicosia has meticulously evaluated the data provided by SAFE, with plans underway to spur domestic production of critical assets—including drones, personnel carriers, sophisticated software, and advanced communication systems. Moreover, the program paves the way for joint procurements with other EU nations and grants access to U.S. military technologies.

Strategic Investments And Future Prospects

Former President Nikos Christodoulides has indicated that the EU-approved €150 billion package, in concert with U.S. military equipment provisions, will shape forthcoming decisions regarding defense infrastructure investments. With a focus on key bases such as Andreas Papandreou and Evangelos Florakis, final deliberations on equipment and support infrastructures are imminent.

Enhancing Global Partnerships Through Local Innovation

Furthermore, the first session of the Council of Defense Industry has set the framework for integrating Cypriot companies into national defense initiatives. Minister of Defense Vasilis Palmas has emphasized that local enterprises are already capable of producing critical defense products. By aligning with foreign firms through strategic ventures modeled on successful international practices, Cyprus is primed to contribute significantly to the EU’s overarching strategy for reinforcing defense production and capability.

The Future Forbes Realty Global Properties

Cyprus Government’s Economic Policy: A Blueprint for Growth and Stability

by THEFUTURE.TEAM

October 1, 2025

Strong Budgetary Outlook for 2026

The President of the Republic, Nikos Christodoulidis, announced positive outcomes from the government’s policy initiatives during an afternoon session of the Cabinet Council held at the Presidential Mansion. The focal point of the meeting was the 2026 state budget, heralded as a symbol of economic strength and forward-looking development.

A Robust and Surplus Budget

At the outset, President Christodoulidis highlighted the importance of maintaining a dynamic economy—a priority among the government’s top five strategic objectives. The newly presented budget is not only surplus but also grounded in stability, offering a blend of social and developmental mandates. This financial blueprint underscores the government’s unwavering commitment to strategic investments and sustainable growth.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Enhanced Social and Developmental Investments

Significant increases are planned in both developmental spending and social policy allocations. Notably, developmental expenditures are set to rise by 4.7% in addition to the 4% increase recorded in the 2025 budget. Social services, which saw a 5.3% boost in the previous year, are slated for a further 6.7% increase. Such measures are indicative of a policy designed to balance fiscal discipline with impactful public spending.

Reduction in Public Debt

One of the key highlights of the session was the projected decline in public debt. The debt-to-GDP ratio is expected to decrease from 73.6% in 2023, when the current administration assumed office, to 52.9% by 2026—placing Cyprus among the low-debt economies within the Eurozone. This significant reduction demonstrates prudent fiscal management and augurs well for long-term economic stability.

Strategic Focus on Education, Health, and Transformation

President Christodoulidis reiterated the government’s prioritization of sectors critical to national development. Investments in education, healthcare, and social welfare are being bolstered alongside initiatives for digital transformation and the green transition. Projections for 2026 include a growth rate of 3.1% and an unemployment rate maintained below 5%, approximately at 4.6%. Such targets reflect a resilient and balanced approach in the face of global uncertainties.

A Commitment to Responsible Governance

Drawing comparisons with economic conditions in major Eurozone countries and acknowledging Cyprus’s unique geopolitical challenges, the President emphasized that these results are a testament to responsible economic policy. The administration’s clear mandate remains: to act in the best interests of the Cypriot people, ensuring that responsible governance prevails without resorting to experimentation.

Looking Ahead

Concluding the address, President Christodoulidis affirmed that the government would persist in delivering results with the same sense of accountability. The approved 2026 budget marks the third fiscal plan under the current administration, underscoring a consistent commitment to transparency, fiscal prudence, and strategic development.

Breaking news