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Greek Energy Minister To Disclose CINEA Letter In €67 Million Royal Terminal Funding Dispute

Minister Poised To Reveal Key Documents

Greek Energy Minister George Papanastasiou has indicated that he is prepared to publicly release the letter from CINEA (European Climate, Infrastructure and Environment Executive Agency) if necessary. The document in question concerns the retraction of €67 million from European funds allocated to the Royal terminal project. For further context on the Royal terminal, please refer to the Royal terminal developments.

Budget Discussions And Parliamentary Scrutiny

During a heated discussion in the parliamentary Budget Committee of the Ministry of Finance, Minister Papanastasiou addressed allegations made by Democratic Rally MP Kyriakos Chatziaganni. The MP had claimed government responsibility for the request to return the funds to the European Union, citing mismanagement. The minister refuted these claims, stating that not a single subsidy was lost but rather misallocated due to poor implementation. He affirmed, “If necessary, I will make the CINEA letter public,” emphasizing a commitment to accountability and transparency.

Financial Implications And Broader Impact

Beyond the contested €67 million, the minister underscored that the ramifications of the mismanagement extend further, noting that the Republic was set to secure €101 million from the European Union. This disclosure points to a larger financial and strategic impact on both national policy and the broader commitments to EU funding processes.

Commitment To A Transparent And Corrective Process

Minister Papanastasiou maintained that the government’s actions regarding the terminal project have been entirely transparent. He highlighted that plans for revising the project will only commence once a detailed study on the deviations between the existing constructions and the proposed design is completed. He stressed, “The project was undertaken with burdens, and now it must be systematically addressed.” In response, critics like MP Chatziaganni have urged the minister to abandon claims of non-responsibility and to implement the necessary corrections, including timely reporting to the EU.

Looking Ahead

As the investigation into the discrepancies continues, industry observers and policymakers alike are watching closely. The forthcoming study is expected to determine significant changes in the planning and execution of the project, with potential wide-ranging implications for governmental accountability and EU funding strategies.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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