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Cyprus President Outlines Strategic Business Agenda Amid EU Presidency

In a decisive address at the Eurochambres presidency meeting hosted by the Cyprus Chamber of Commerce and Industry (KEVE) in Nicosia, President Nikos Christodoulides outlined an ambitious blueprint for business, trade, and competitiveness. Speaking before a distinguished audience representing over 1,700 local chambers throughout the European Union, he linked Cyprus’s strategic priorities directly with the broader interests of European businesses, particularly as Cyprus embarks on its Presidency of the Council of the European Union.

Forging a Robust Partnership With Business Leaders

President Christodoulides emphasized that forging close ties with the business community is essential at this critical juncture. “Your presence here, especially just weeks after assuming the EU Council Presidency, signifies our commitment to reinforcing a dynamic and competitive Europe,” he asserted. He described Eurochambres, which encapsulates more than 20 million companies, as the leading institutional partner underpinning the economic direction of the EU.

Pioneering Strategic Trade Initiatives

Turning his focus to trade and investment, the President announced a high-profile visit to India scheduled for May. This engagement, featuring key economic hubs such as New Delhi and Mumbai, is designed to solidify Cyprus’s position as a vital link between India and the EU. “The Prime Minister of India’s invitation marks a pivotal development,” he remarked. The visit will include a dedicated business delegation and an organized forum aimed at enhancing commercial relations, further underscoring Cyprus’s strategic importance as an entry point to the EU’s single market of 450 million consumers.

Enhancing Competitiveness in an Unstable Global Landscape

Against the backdrop of global uncertainty, President Christodoulides reinforced the notion that economic strength must be paired with geopolitical clout. He noted that recent events, including the challenges stemming from the conflict in Ukraine, have underscored the imperative of stable and reliable policies. Emphasizing that “economic strength is inseparable from geopolitical relevance,” he advocated for regulatory reforms designed to reduce administrative burdens and streamline processes through measures like the Omnibus Simplification Packages.

Expanding Regional Engagement and Resilience

The President also spotlighted the strategic significance of the EU’s southeastern neighborhood and the Gulf region, noting recent diplomatic and economic initiatives, including engagements in Bahrain. “Our focus on this region is vital because it directly impacts Europe’s long-term security and prosperity,” he explained. He also showcased Cyprus’ robust economic performance—achieving one of the highest growth rates in the eurozone, significant improvements in unemployment figures, and enhanced public finances—as a testament to the nation’s reform momentum and resilience.

Commitment To Delivering European Success

Concluding his address, President Christodoulides reaffirmed Cyprus’s dedication to a proactive and confident European agenda. “Our Presidency is not only a responsibility but also an opportunity to deliver enduring value for Europe and its citizens,” he declared. By linking internal reforms with broader European ambitions, he positioned Cyprus as a beacon of economic success and resilience in an ever-evolving global landscape.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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