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European Commission Closes Cyprus Citizenship Program Infringement Case

European Commission Concludes Investigation

Cyprus has taken decisive steps to address the concerns raised by the European Commission over its former Citizenship-by-Investment Program. The Commission, following a thorough review of the allegations, announced on March 11, 2026 that it is closing the case related to alleged breaches by the Republic of Cyprus.

Regulatory Violations And Commission’s Stance

Commission Representative Mark Lambert was unequivocal during his remarks with CYPRUS PROFILE, stating that such citizenship investment schemes contravene EU law, as European citizenship must remain non-commercial and not subject to purchase. Despite suspending the issuance of investor citizenship in October 2020, Cyprus had not fully repealed the underlying legislation, triggering infringement procedures.

Legislative Reforms And Resolution

The government of Cyprus responded by finalizing the processing of pending applications in 2021 and formally repealing the legal framework for the program, effective December 12, 2025. These timely reforms have effectively allayed the Commission’s concerns, prompting the closure of the infringement case.

Implications For EU Regulatory Compliance

This development underscores the EU’s stringent oversight of member state policies to ensure alignment with its fundamental legal principles. Cyprus’ swift legislative actions illustrate a commitment to upholding EU standards and bolstering confidence in the region’s regulatory framework.

Cyprus’ Poverty And Social Exclusion Risk Stands At 17.1%

Cyprus recorded a poverty or social exclusion risk rate of 17.1% in 2025, below the European Union average of 20.9%, according to new Eurostat figures. Across the bloc, however, more than 92 million people continued to face the risk, highlighting persistent social and economic inequalities.

More Than 92 Million People At Risk Across The EU

A total of 92.7 million people across the EU were at risk of poverty or social exclusion in 2025, equivalent to just over one in five residents.

Cyprus is treated as a single statistical region because of its size, unlike many member states divided into multiple regions for comparison. Its national figure therefore provides an overall picture but does not capture differences between districts or communities.

Regional Gaps Remain Stark Across Europe

The risk varied considerably across the EU, with the highest rates concentrated largely in southern, eastern and outermost regions. In 24 of the 243 regions with available data, at least 31.5% of the population faced poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, as well as Brussels in Belgium and Bremen in north-western Germany.

French Guiana recorded the highest rate, at 54.8%, followed by Calabria in southern Italy at 45.3% and Sicily at 44%. Melilla, a Spanish autonomous city, recorded 43.7%, while Réunion, another French outermost region, stood at 42.3%.

Central Europe Records The Lowest Rates

At the other end of the scale, 24 regions reported poverty or social exclusion risk rates below 13% in 2025. These included five eastern EU capital regions: Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Other regions with low rates were concentrated in northern Italy, the Czech Republic, northern Belgium, Hungary, Poland and Austria, illustrating the uneven distribution of economic security across Europe.

Cyprus Remains Below The EU Average

Cyprus’ rate of 17.1% places it below the EU average, although it remains higher than the levels recorded in the bloc’s lowest-risk regions.

The figures suggest that Cyprus performs relatively well compared with the wider EU, but poverty and social exclusion remain significant challenges across the bloc, affecting more than 92 million people.

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