Cyprus is calling for greater flexibility for EU member states to introduce national measures to ease high energy costs, while supporting a further postponement of the EU Emissions Trading System 2 (ETS 2). President Nikos Christodoulides outlined the priorities as he arrived for the European Council in Brussels on Thursday, also highlighting EU budget negotiations, Schengen accession, migration and regional security.

Energy Costs And ETS 2 Top The Agenda

Christodoulides said Cyprus had already communicated its position on energy costs and backed several member states calling for a further delay to ETS 2. He expects energy prices and the EU’s long-term budget to dominate discussions, given their impact on European competitiveness, households and businesses.

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His proposed response to the energy crisis has three elements: immediate support for households and companies, structural reforms to reduce the EU’s energy dependence on the Middle East, and measures to strengthen citizens’ disposable income.

He also plans to highlight the Great Sea Interconnector (GSI) as part of the broader need to strengthen energy links between member states. Asked about a memorandum of cooperation between the occupied areas and Turkey, Christodoulides said he would brief fellow leaders on the project’s geopolitical, energy and economic significance, as well as what he described as Turkey’s illegal actions.

EU Budget Talks Face Difficult Compromises

On the EU’s next Multiannual Financial Framework (MFF), Christodoulides welcomed a proposal from the Irish presidency, saying it builds on a plan presented during Cyprus’s own presidency. However, he stressed that funding for defence, security, competitiveness and migration must not come at the expense of the Common Agricultural Policy or Cohesion Policy.

According to the president, the latest proposal would represent a reduction of around 8% compared with the European Commission’s original plan, a level Cyprus does not support. He warned that a final compromise could involve cuts of 10% to 12%.

Christodoulides said the negotiations were fundamentally political and should be concluded by the end of the year. He pointed to upcoming elections and political developments in Sweden, Spain, France, Italy and Poland as factors that could complicate the process. He also expects an extraordinary European Council in November, warning that delays would send a negative signal within and beyond the EU.

Cyprus Hopes For Schengen Decision In December

Christodoulides said all technical work on Cyprus’s accession to the Schengen Area had been completed. He hopes the issue will be discussed at the relevant Council meeting in December, paving the way for a final political decision. The president has already raised the matter with the European Commission president and plans to continue consultations with other EU leaders.

Cyprus Offers To Host European Mission For Lebanon

Cyprus has welcomed plans to establish a European mission for Lebanon and is ready to serve as its operational centre, Christodoulides said. He cited the island’s geographic proximity, established ties with Lebanon and existing training facilities, including the CYCLOPS Centre, established in cooperation with the United States. According to the president, the centre has trained participants from 50 countries in the region.

Migration And Regional Security Remain Priorities

Christodoulides reiterated Cyprus’s support for a European emergency mechanism to address migration, particularly when migration flows are used as a political tool. He said arrivals in Cyprus had fallen by more than 90% and returns had increased by 180% compared with 2022, arguing that the country’s approach could serve as a model for the EU.

On wider geopolitical issues, he expressed concern about the agreement between US President Donald Trump and Russian President Vladimir Putin, saying closer coordination between Washington and the EU should have come first.

Cyprus is also ready to participate in the next EU–Gulf Cooperation Council summit in Saudi Arabia, with Christodoulides stressing the need for concrete outcomes to strengthen ties between Europe and the Gulf. He said regional security was a shared concern, arguing that the security of Cyprus, the EU and Gulf countries was interconnected.

Regarding China, the president said a more unified European position was emerging, and he did not expect particularly difficult discussions. Asked about the possibility of the United Kingdom rejoining the EU, he said Cyprus would welcome such a move if London chose to pursue it.