Filenews 6 December 2025 - by Angelos Angelodimou
In the midst of serious structural changes and ongoing consultations in the economy, energy and labour, the President of the Republic decided to proceed with changes in the Council of Ministers. By changing his key associates to key posts, Mr. Christodoulidis may want to give new impetus to issues that should be completed.
Makis Keravnos remained steadfast in the position of Minister of Finance, continuing the effort to complete the tax reform, a project that is one of the biggest bets of the current government. The same did not happen with the other two key associates of the President, who also handled critical issues. The helm in energy passes into the hands of the former Minister of Health Michalis Damianos, while in the place of Giannis Panagiotou in the Ministry of Labour will now be the former MP of DIPA Marinos Mousiouttas.
More specifically, the portfolio of the Ministry of Energy, Commerce and Industry is taken over by Michalis Damianos, until recently Minister of Health in place of Giorgos Papanastasiou. As it is understood, this Ministry has been significantly upgraded after the discovery of hydrocarbons and the conduct of drilling, the delimitation of the EEZ, the Cyprus-Greece electrical interconnection project, the Terminal in Vasiliko, the transition to green energy and the expansion of RES, the cost of electricity and other important issues.
Ministry of Energy
In the midst of serious developments, the President of the Republic proceeded to replace the Minister of Energy, but placed in this critical chair another member of the Cabinet, who obviously has a picture of the developments. Mr. Damianos will obviously be called upon to manage the issues that are in progress, as well as those that are expected to concern them in the future. So at what stage are the big energy issues?
GSI: The Cypriot Government remains committed to the decision taken by President Christodoulides and Prime Minister Mitsotakis last month to update the technical-economic data of the project, before the next steps. The Greek Minister of Energy, Stavros Papastavrou, recently spoke of American investment interest with the aim of participating in the GSI project. In addition, the General Accounting Office requested that fiscal risk be recognized for the GSI for the period 2026-2028, with a provision of €25 million annually from 2026.
Vasilikos Terminal: The process is underway regarding the request of CINEA, the financial institution of the European Commission, for the return of 67 million euros. euros that were given as a sponsorship for the liquefied natural gas terminal in Vasiliko.
Electricity Market Opening: The opening of the competitive electricity market on October 1, 2025, marked the beginning of a new era. "With this reform, Cyprus will support its economy 'on sound foundations', while citizens will enjoy fairer prices," the President of the Republic said recently.
Cyprus – Lebanon Agreement: The ratification of the Agreement between the Republic of Cyprus and the Republic of Lebanon on the delimitation of the Exclusive Economic Zone, which was signed in Beirut on January 26, 2025, opened new horizons for further cooperation between the two countries and requires systematic work and effort to safeguard the interests of the two countries.
Ministry of Labour
In the midst of the consultation on the revision of the Minimum Wage, the new Minister of Labor Marinos Mousiouttas will take over his new duties, replacing Giannis Panagiotou. The final decision may be left to the Council of Ministers, but dialogue with the social partners is a key part of the whole process and the positions of employers and trade unions are usually taken into account to a certain extent before the final decision.
Pension reform: One of the big chapters that the current government will have to carry out is that of pension reform. A multi-level and particularly important project, as it concerns the entire population of the country. Current and future pensioners. The relevant consultation should have already begun, but the disagreements on the ATA and the dialogue that dragged on for a long time, delayed the rest of the issues.
Collective agreements: Based on the establishment of the EU, but also on the will of the government side, the chapter of the extension of collective agreements is soon to be opened, given that the intention has been expressed on the part of the Ministry of Labour, to set a condition, such as in public offers, for companies that comply with collective agreements to take part.
Foreign workers: Retail, construction, the hotel industry and some others to a lesser extent, emphasize from time to time the issue of labour shortages. On the other hand, the unions claim that a number of employers hire foreign workers, without meeting the conditions set. As it is understood, this issue will soon be reopened, on which the two sides, employers and trade unions have strong views.
