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Panayiotou stresses need to tackle drought in agriculture at EU Council

Minister for Agriculture, Maria Panayiotou, talked about the effects of drought on Cyprus, as well as the measures that the EU can take to support the agricultural sector across Europe, and presented the recent joint statement by the MED9 on the issue, during the Agriculture and Fisheries Council of the EU held in Brussels.

During a discussion on the state of agricultural markets in the EU, Panayiotou referred to the significant impact that a prolonged drought has had on Cyprus, resulting in significantly reduced yields for irrigated and non-irrigated crops, the Ministry of Agriculture, Rural Development and Environment said in a press release on Wednesday.

The Minister, the press release adds, “pointed out that, due to limited water availability in dams, water supply for agricultural purposes has been reduced by 33.7% for 2024, while the forecasts for the following years are not favourable.”

Panayiotou called on the European Commission to activate the agricultural reserve to provide support to affected farmers, but also to further simplify support measures related to water management under the Common Agricultural Policy.

During the meeting, the Minister also presented the joint statement on the impact of drought on the primary sector, which was issued by the Ministers of Agriculture of the nine Mediterranean EU Member States (MED9) during a recent meeting in Cyprus.

Panayiotou referred specifically to the need for a collective response to this phenomenon that threatens food production and the social fabric of rural areas in the EU and pointed out that the joint statement reflects the practical commitment of the Mediterranean Member States to find solutions that will allow sustainable water management and will be included in EU policies.

According to the press release, the joint communication of the MED9 received the support of other Member States, in addition to the countries that had signed it in Cyprus.

During a working lunch, Professor Peter Strohschneider presented his report on the results of the strategic dialogue on the future of agriculture, which was presented in early September at a joint press conference with European Commission President Ursula von der Leyen.

Panayiotou said she supports the need to further target support for farmers, with a focus on small and medium-sized farms and young farmers, as mentioned in the report. She also stressed the importance of promoting new technologies and innovation in agricultural production.

She also noted that the proposal to create two funds independent of the CAP, such as the fair transition fund and the nature restoration fund, should not limit appropriations which will be available through the next CAP in the future.

The Agriculture Minister said that Cyprus agrees with the proposed reform of the agricultural reserve, pointing out the need for a more flexible crisis management framework that will provide adequate support to farmers and allow for faster and simplified procedures, adapted to local needs and specificities.

Citigroup Raises Eurobank Target Price Following Strong Q1 Results

Revised Target Price Reflects Strengthened Outlook

Citigroup raised its target price for Eurobank to €5.00 from €4.70 while maintaining a buy recommendation following the bank’s first-quarter results and upgraded medium-term profitability outlook. Based on Eurobank’s reference share price of €3.72 on May 15, 2026, Citigroup’s revised target implies upside potential of 34.4%, rising to 38.5% when the estimated dividend yield of 4.1% is included.

Enhanced Earnings And Comprehensive Forecasts

The upgraded analysis from Citigroup, as reported by Newmoney, points to bolstered momentum in net interest income and fee generation. The investment bank has revised its normalized earnings per share forecasts upward: 4% for 2026, 9% for 2027, and 14% for 2028, primarily driven by higher expected net interest income and increased commissions.

Scenario Analysis Offers Range Of Outcomes

Citigroup’s bullish scenario values Eurobank shares at €6.10, implying potential upside of 64%. Its downside scenario projects a share price of €3.55, approximately 4.6% below the May 15 reference level. The optimistic case assumes a return on tangible equity one percentage point higher, alongside a 100 basis point reduction in the cost of equity. Meanwhile, the negative scenario assumes a 1.5 percentage point lower return combined with a 200 basis point increase in the cost of equity.

Solid Q1 Results Support Growth Targets

Eurobank reported normalized net profits of €351 million during the first quarter, broadly in line with market expectations. Reported net profit reached €331 million after a €35 million expense linked to a voluntary exit programme involving around 200 employees. The programme is expected to generate annual savings of approximately €14 million. Net interest income increased 3% quarter-on-quarter, exceeding consensus forecasts by 2% and supporting expectations that the bank could surpass its €2.6 billion target for 2026.

Looking Ahead: Ambitious Growth And Profitable Outlook

Organic loan growth reached €1.1 billion during the quarter, supporting management’s target for €3.8 billion in annual organic credit expansion. Fee income also rose 20% year-on-year, outperforming forecasts by 4%. Citigroup projects Eurobank’s net profit will reach €1.45 billion in 2026, with earnings per share of €0.40 and a dividend of €0.20 per share.

By 2028, the bank forecasts net profit of €1.76 billion alongside further improvement in profitability metrics and dividend yield. The revised projections reinforce expectations that Eurobank will continue benefiting from stronger lending activity, resilient fee income and improving operational efficiency.

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