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Romania and Bulgaria Officially Join the EU’s Schengen Zone

As of Wednesday, January 1, 2025, Romania and Bulgaria have become full members of the European Union’s Schengen free-travel area, marking a historic expansion of the bloc. Land border controls were officially scrapped, allowing residents to travel seamlessly across participating countries without passport checks.

A Celebratory Moment at the Danube

Fireworks illuminated the night sky at the Friendship Bridge, a key crossing over the Danube River near the Bulgarian town of Ruse, as the interior ministers of both nations symbolically lifted the barrier at midnight. This crossing, a critical route for international trade, is often plagued by bottlenecks, but the removal of land checks is expected to ease congestion.

“This is a historic moment,” declared Bulgarian Prime Minister Dimitar Glavchev. “From Greece in the south to Finland in the north and as far west as Portugal, we can now travel without borders.”

A Long Road to Schengen Membership

Although border checks for air and sea travel were removed in March 2024, land checks had remained in place until Austria recently lifted its veto. Austria had previously argued that additional measures were needed to curb irregular migration.

Romania and Bulgaria’s journey to Schengen membership has been long, as they faced years of opposition despite meeting the technical criteria. The recent development is a major milestone, cementing their place in the EU’s free-travel area.

Schengen: A Borderless Vision

The Schengen area, initially established in 1985 between France, Germany, Belgium, the Netherlands, and Luxembourg, now encompasses 25 of the EU’s 27 member states, along with Iceland, Liechtenstein, Norway, and Switzerland.

However, not all EU countries participate. Ireland has opted out, and Cyprus remains outside the Schengen zone. Despite being an EU member since 2004, Cyprus faces challenges in meeting all the technical requirements for Schengen membership, partly due to its complex political situation. These challenges include strengthening border security and immigration controls.

Cyprus continues to work towards full Schengen membership, but the political and logistical factors involved present significant hurdles, and the timeline for its integration remains uncertain.

This historic expansion of the Schengen area, however, reinforces the EU’s vision of a borderless Europe, further uniting the bloc and streamlining travel and trade across its member states.

Robust Cyprus Construction Activity Bolsters Vassilico Cement’s 2025 Performance

Vassilico Cement Works Public Company Ltd reported a net profit of €35.52 million for 2025, supported by strong construction activity in Cyprus. Company profit reached €34.99 million, reflecting higher revenues and improved operating performance.

Domestic Market Growth Driven By Cyprus Construction

Group revenue rose to €152.75 million, while company revenue reached €152.66 million, up 11% year on year. Growth was driven by increased sales volumes in the domestic market, where construction activity remained strong throughout the year.

Enhanced Production Efficiency And Cost Management

Gross profit increased to €50.30 million at group level and €50.21 million at company level, compared with €42.49 million in 2024. The improvement reflects gains in production efficiency and cost control, supported by higher use of alternative fuels and improved electricity efficiency. These measures reduced unit costs while supporting environmental targets.

Executive Insights And Macroeconomic Outlook

Executive Chairman Antonis Antoniou said strong domestic demand supported production volumes, with the company maintaining focus on the local market and managing exports selectively. He added that favorable economic conditions in Cyprus contributed to performance, despite regulatory pressures in Europe and broader geopolitical uncertainty.

Navigating Energy And Regulatory Challenges

Future performance will be influenced by energy market volatility and European climate policy, including carbon pricing and the Carbon Border Adjustment Mechanism. Rising fuel and electricity costs continue to affect energy-intensive industries.

The company is expanding its renewable energy capacity, with a photovoltaic park reaching 16MW and plans for an additional 8MW, subject to grid connection. The investments aim to improve cost stability and energy efficiency.

Shareholder Returns And Strategic Investments

The board approved an interim dividend of €0.15 per share, totaling €10.79 million, on September 25, 2025. A final dividend of €16.55 million, or €0.23 per share, will be proposed. Combined, total dividends amount to €27.34 million, or €0.38 per share.

Management said the company will continue focusing on efficiency, cost control and sustainability as it navigates energy market pressures and regulatory requirements.

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