A new round of targeted investment missions to India, the United States and Kazakhstan was announced on Tuesday by Cyprus President Nikos Christodoulides, as he outlined a strategy to turn Cyprus into an active investment hub, linking foreign policy directly with economic growth.

Speaking at the annual general assembly of the Cyprus Employers and Industrialists Federation in Nicosia (OEB), the President said the initiative comes at a time of “increased geopolitical instability and uncertainty with multiple and multi-layered implications.”

“In three weeks we are visiting India with a business delegation, in early June Kazakhstan, while preparations are at a final stage for contacts in the United States, in Florida, Ohio and New York,” he said, inviting businesses to actively participate in efforts aimed at attracting “quality investments.”

Framing the initiative within a broader strategic vision, the President underlined Cyprus’ geopolitical role, stating that the country “can, through actions and not words, act as a bridge between the European Union and the Middle East, India and the Gulf.”

Bridge role and EU dimension

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The President placed strong emphasis on Cyprus’ role within the European Union, especially after the recent informal European Council hosted by the country.

“The solutions to the challenges we face are not only national but also European,” he said, pointing out the added leverage Cyprus gains as an EU member state.

He referred to discussions on the EU’s 2028–2034 Multiannual Financial Framework, stressing that it must serve the goal of “a Strategically Autonomous Union,” while making clear that such autonomy depends on competitiveness.

“We have agreed that we move forward with strengthening the competitiveness of the European economy, through investments in innovation, technology and infrastructure,” he noted, adding that energy autonomy is also central amid ongoing geopolitical instability.

President Christodoulides delivered a clear message on reforms.

“There is no doubt and no excuse anymore for the need to move faster with bold reforms,” he said focusing on faster decision-making, scaling innovation and building a truly unified market.

He also referred to the roadmap “One Europe, One Market,” which he signed on behalf of the 27 member states. The plan includes 42 actions aimed at completing the single market by 2027, reducing fragmentation and simplifying rules.

For Cypriot businesses, he said, this translates into “better access to a truly unified market, fewer barriers to investment and more growth opportunities.”

Call to accelerate energy reforms

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Energy policy emerged as a key concern, with the President acknowledging delays and calling for faster implementation.

“Despite long-standing distortions that take time to correct, we must clearly move at a faster pace,” he said.

He said that measures focus on the operation of a competitive electricity market, expansion of renewable energy, energy storage systems and strategic interconnection projects.

He linked the issue to EU-wide discussions, warning that without affordable electricity “European industry will continue to be non-competitive,” while noting that geopolitical instability is already having “a direct and measurable economic impact.”

Economic resilience and reforms

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President Christodoulides pointed to strong macroeconomic performance as proof of Cyprus’ resilience, highlighting credit rating upgrades and the country’s return to “A” category for the first time since 2011.

“It was this management that led to a surplus of 2.6% and a reduction of debt to 55% of GDP,” he said, adding that growth reached 3.8% in 2025, among the highest in the eurozone.

“These notable performances are not just numbers. They have a direct positive impact on all of us,” he stressed, linking them to lower borrowing costs, investment inflows and better jobs.

He argued that fiscal discipline allows the government “to respond immediately,” citing a recent €200 million support package for households and businesses.

On reforms, he highlighted digitalisation and state modernisation, noting that 75 new digital services were introduced in 2025, exceeding targets, with more than 100 planned for 2026.

He also pointed to tax reform to boost liquidity and described pension reform as “the next major and important step,” aiming to ensure “decent pensions for all.”

He added that human capital was another priority, with initiatives such as “Minds in Cyprus” to attract talent, alongside labour agreements with Egypt and ongoing discussions with India.

Pantelides: “Long-standing structural problems persist”

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In his speech OEB President George Pantelides warned that internal weaknesses continue to undermine competitiveness despite strong economic indicators.

“Where external factors are not to blame, our only enemy is our bad self,” he said, stressing that long-standing structural problems persist.

While acknowledging growth, low unemployment and reduced debt, Pantelides argued that uncertainty in the global environment makes reforms urgent and unavoidable.

Pantelides identified energy as a critical risk, calling security of supply “non-negotiable” and warning of high costs and potential shortages. He urged progress on natural gas infrastructure, electricity interconnection, renewables and storage, noting that “we are losing ground and competitiveness.”

He also highlighted pressures in tourism following recent security concerns, calling for support across the value chain, and criticised excessive regulation in construction and real estate.

On the labour market, he pointed to acute shortages across sectors, particularly in technical professions and healthcare, warning that a lack of at least 600 nurses could lead to serious system strain.

He further raised concerns over bureaucracy, slow justice delivery and inefficiencies in the public sector, arguing reforms must proceed “at the pace of the private sector.”

Pantelides also expressed dissatisfaction over the exclusion of OEB from international government missions, despite its role in European business networks, warning that “no one can play with the country’s credibility.”

Echoing similar concerns, President of the Cyprus Chamber of Commerce and Industry (KEBE), Stavros Stavrou, described entrepreneurship as being at a “critical crossroads,” citing geopolitical tensions and structural weaknesses such as bureaucracy and labour shortages.

Meanwhile, Rania Aikaterini of Hellenic Federation of Enterprises highlighted regulatory rigidity and the need for stronger EU competitiveness, announcing a cooperation agreement with OEB to strengthen Cyprus–Greece business ties.

CNA/TNE/EPH/2026

ENDS, CYPRUS NEWS AGENCY