Breaking news

Strategic Reforms And Priorities For 2025–26: Cyprus Poised for Enhanced European Leadership

Government Initiatives Strengthen Housing Policy

The landscape of domestic reform is evolving with substantial initiatives set for 2025, as noted by Minister Konstantinos Ioannou ahead of Cyprus assuming the Presidency of the Council of the European Union. In a statement that underscored both the nation’s commitment to progressive domestic policies and its readiness for international leadership, the minister outlined a framework built on challenges and reforms designed to enhance housing policies.

Substantial Interventions and Policy Enhancements

The Ministry of the Interior has implemented significant measures throughout 2025 aimed at reinforcing the nation’s housing policy. Focused on delivering more solutions and opportunities, these interventions are particularly beneficial for new and young couples, positioning Cyprus as a forward-thinking market in the region.

Streamlined Property Administration and Transparent Governance

In parallel with these initiatives, the government has restructured the management of Turkish-Cypriot properties. This process has elevated transparency, established equity, and fostered accountability in public service. Rapid permitting in development projects has also alleviated delays and reduced administrative burdens for both citizens and businesses, reinforcing Cyprus’s commitment to a more efficient, modern bureaucracy.

Urban Policy Amnesty: A Catalyst for Regularization

Another pivotal aspect of these reforms is the urban policy amnesty, which has empowered thousands of citizens. By enabling long-term property holders to secure ownership titles, the reform has provided a much-needed legal framework to resolve years of bureaucratic stagnation.

A Vision for Modern Public Services in 2026

Looking ahead to 2026, the Interior Ministry plans to enact further transformative changes within the Departments of Urban Planning and Land Registry. These changes are designed to modernize public services, reduce red tape, and enhance the overall experience for citizens. This energy for reform is part of a broader strategic vision to align domestic administrative services with evolving economic and social trends.

Cyprus on the European Stage

On the international front, the minister emphasized the significant responsibility and opportunity now resting on Cyprus as it assumes the Presidency of the Council of the European Union on January 1. This role is expected to amplify the country’s voice and prestige across Europe, providing a platform to showcase its reform agenda.

A Call to Progress and Prosperity

In closing, Minister Ioannou extended his wishes for health, strength, and a brighter 2026 for all citizens, reinforcing the government’s commitment to fostering progress and prosperity both at home and in the European arena.

Cyprus Posts Record Annual Growth In Q4 2025, Outpacing EU Peers

Record Annual Growth In Q4 2025

According to Eurostat, Cyprus posted the strongest annual GDP growth among EU member states with available data in the fourth quarter of 2025. The economy expanded by 4.5% year on year, underscoring sustained economic momentum. Quarterly, GDP also advanced by 1.4% compared with the previous quarter, reinforcing the picture of steady expansion toward the end of the year.

Moderate Economic Expansion In The Eurozone And The EU

Across the euro area and the wider European Union, growth remained considerably more modest. Seasonally adjusted GDP in the eurozone increased by 0.3% quarter on quarter in Q4 2025, matching the 0.3% rise recorded across the EU. In the preceding quarter, growth reached 0.3% in the eurozone and 0.4% in the EU.

On an annual basis, GDP rose by 1.3% in the eurozone and 1.5% in the EU during Q4 2025, slightly below the 1.4% and 1.6% increases registered in the previous quarter. For the full year 2025, preliminary estimates point to average growth of 1.5% in the eurozone and 1.6% in the EU, based on seasonally and calendar-adjusted data.

Marginal Increase In Employment

Labour market figures show a gradual but positive movement. In the fourth quarter of 2025, employment in both the eurozone and the EU rose by 0.2% compared with the prior quarter. Year-on-year employment gains reached 0.6% in the eurozone and 0.7% across the EU. Projections for the full year indicate overall employment growth of 0.7% in the eurozone and 0.5% in the EU.

Overall, the data highlight Cyprus’s notably faster growth pace relative to the European average, pointing to strong domestic performance even as broader regional expansion continues at a measured rate.

The Future Forbes Realty Global Properties
Aretilaw firm
eCredo
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter