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Cyprus Unveils 2025 State Budget: Three Key Priorities

by THEFUTURE.TEAM

September 20, 2024

The Cyprus government has submitted its proposed state budget for 2025 to the Council of Ministers, outlining three primary goals aimed at securing economic stability and fostering sustainable growth. This budget comes at a time when Cyprus is navigating a post-pandemic recovery while contending with global economic challenges, including inflationary pressures and geopolitical uncertainties. The proposed financial framework reflects the government’s commitment to fiscal responsibility, social welfare, and green development while seeking to strengthen key sectors of the economy.

1. Fiscal Discipline and Economic Stability

The first priority of the 2025 state budget is to maintain fiscal discipline and ensure economic stability. Cyprus has demonstrated resilience in recent years, recovering from the COVID-19 pandemic’s economic fallout and managing inflationary pressures. However, the government remains cautious about external factors such as rising energy costs and global market volatility.

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The budget aims to strike a balance between controlling public debt and continuing to support growth. Measures to improve revenue collection, manage public spending efficiently, and reduce the fiscal deficit are central to this goal. By adhering to fiscal prudence, the government seeks to safeguard Cyprus’ financial standing while maintaining investor confidence.

2. Strengthening Social Welfare

The second key focus of the 2025 budget is on enhancing social welfare and improving the standard of living for all citizens. The government plans to allocate substantial resources to healthcare, education, and social security, addressing inequalities exacerbated by the pandemic. Investments in healthcare infrastructure, digitalisation of public services, and expanded social protection programmes will be essential to this effort.

In addition, the budget includes targeted measures to support vulnerable groups, including low-income families, the elderly, and the unemployed. By increasing social spending, the government aims to ensure that the benefits of economic growth are shared across all segments of society, promoting social cohesion and reducing poverty levels.

3. Promoting Green and Digital Transformation

The third strategic pillar of the 2025 budget is the promotion of green and digital transformation, aligned with the European Union’s sustainability and innovation goals. The Cypriot government is committed to meeting its climate targets and transitioning towards a more sustainable economy. Investments in renewable energy, energy efficiency, and green technologies will form a significant part of the budget. These initiatives will not only help reduce Cyprus’ carbon footprint but also stimulate job creation in emerging sectors.

On the digital front, the budget outlines plans to enhance digital infrastructure and foster innovation across industries. By promoting digitalisation, the government aims to increase productivity, attract foreign investment, and make Cyprus a competitive player in the global digital economy. This includes the ongoing modernisation of public administration and further investment in ICT (Information and Communications Technology) to improve the efficiency of government services.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.