Filenews 9 December 2025
"Extroversion brings opportunities", said the President of the Republic, Nikos Christodoulides, in his speech at the 98th General Assembly of the CCCI, on Monday night, announcing, among other things, that in the next period the Republic of Cyprus will proceed with "three very important agreements" that are expected to boost the extroversion of Cypriot businesses.
Specifically, he said that the agreements, which are expected to be signed in the near future, concern an EU member state, a Gulf country and an Asian country. "Political, diplomatic agreements in which there are specific references to attracting investments in Cyprus from these three countries, but also to the extroversion of Cypriot businesses," the President underlined.
Referring to the upcoming Cyprus Presidency of the Council of the EU, he underlined that Cyprus will be at the helm of the EU with the main goal of strengthening the competitiveness of the Union. "We need a more competitive Europe, a Europe that produces, that innovates, that exports, so that we can have a more competitive Cyprus," he said, noting that the great goal of the EU's strategic autonomy cannot be achieved without a competitive Europe.
He noted that the first condition for a competitive Cyprus is the extroversion of our businesses. "The continuation of the positive course of our economy, in addition to the responsible fiscal policy and the reforms we are promoting, also depends on access to new commercial destinations and on the strategic partnerships we are building. In particular, in the current environment of increased tariffs and trade tensions, the European Union needs a clear strategy of extroversion and as Presidency, Cyprus will work precisely in this direction," he pointed out.
In particular, he said that this means the completion of the EU's major trade agreements, such as the agreement with the Mercosur countries, the acceleration of negotiations with Mexico and the countries of Southeast Asia, the strengthening of trade cooperation with the United Kingdom in the post-Brexit era and a stable and predictable dialogue with the United States, which reduces the risk of possible new unilateral tariffs.
Also, this means the completion of negotiations with two countries that are particularly important for the Republic of Cyprus, India and the United Arab Emirates, for Free Trade Agreements, and the continuation of negotiations with Thailand, the Philippines and Malaysia on trade and investment, he continued. In the same context, the full implementation of the Agreement between the European Union and Canada is included.
"The strengthening of the diplomatic footprint of the Republic of Cyprus and the upgrading of its international status has established the view that our country is in practice, and not in words, a pillar of stability in the region, thus creating many advantages, both in the political and economic field," said the President of the Republic. Among other things, he noted that the Strategic Dialogue with the United States and the United Kingdom, as well as the historic visit of the Prime Minister of India to Cyprus last June, "prove the upgraded position of our country in the international arena and how it brings economic and commercial benefits".
"In the immediate future, we will proceed with three very important agreements with an EU member state, with the Gulf area and with an Asian country, political, diplomatic agreements in which there are specific references to attracting investments in Cyprus from these three countries, but also for the extroversion of Cypriot businesses," he noted.
In particular, he referred to the visit to Cyprus of the Indian Prime Minister, which, as he said, substantially upgraded bilateral relations and opened new strategic horizons, both by attracting investments, with results already in the pharmaceutical, defense sector, in the technology sector, as well as towards the possibility of Cyprus' participation in the IMEC trade corridor, "a prospect with clear geopolitical and economic benefits for our country", he said, noting that during the Cyprus Presidency, at the Informal Council in Cyprus on April 23 and 24 with the participation of all European leaders and leaders of the countries of the region, the EU will proceed with specific projects, EU investments in the countries of the wider region.
"Extroversion brings opportunities. And this is exactly where our responsibility lies, the responsibility of the Governments, by creating a business environment that is simple, functional, predictable and business-friendly," said President Christodoulides.
Bureaucracy, many and complex regulations, the wider legislative framework, remain the most important challenges in attracting investment to Europe, he added. Referring to the Draghi report, he said that "we are at the stage from discussions to taking concrete measures". Specifically, he said that during the Cyprus Presidency, in the first half of 2026, the goal is to work on the completion of the Omnibus Packages aimed at targeted simplification, the promotion of a new European culture of regulatory self-restraint in legislation, the reduction of administrative costs for SMEs and the acceleration of the digital single market and cross-border service tools.
Thanks for ATA agreement
In addition, the President thanked both the CCCI and the OEB, as well as the trade unions, for the constructive attitude they showed in the recent agreement on the ATA "for a definitive resolution of an issue that had remained pending for over a decade. A solution that primarily ensures labour peace, offers income stability to tens of thousands of workers and, at the same time, creates a predictable labour cost environment for businesses," he said, noting that the agreement is an example of what we can achieve when social partners and the state work together responsibly.
He noted that on issues such as the minimum wage, the issues of foreign workers and many others that are on the agenda with the trade unions, "through a constructive dialogue we will find solutions that will be for the benefit of Cypriot society".
The reforms for the evolution of the State of 1960 are in progress
Referring to the evolution of the state of 1960, "through continuous and bold reforms", he noted that the competitiveness of Cypriot businesses will clearly be significantly strengthened by the adoption by the House of Representatives of the tax reform. "We are correcting chronic distortions that have affected the competition of Cypriot businesses, we are creating a more equal and productive environment for all businesses, including, of course, Cypriot ones. In this effort, the CCCI, OEB and the social partners in general have been our valuable partners with substantial suggestions that shaped our final proposal," he said.
He also noted the decisive promotion of the digitization of the state, the operation of the upgraded Business Service Center. "All the reforms we are implementing are aimed at creating a modern, faster, more efficient and transparent environment for project development," he said.
He said that the most substantial breakthrough concerns the reduction of bureaucracy and the simplification and digitization of the process, with a drastic reduction in the time for examining and issuing urban planning and building permits to 40 working days for detached houses and duplexes and to 80 working days for apartment buildings up to 20 apartments. "I am glad because the data of the Ministry of the Interior confirm the correctness of our decision to proceed with such a reform: since the implementation of the new system, more than 1,400 applications for detached and duplex houses and about 260 applications for apartment buildings up to 20 apartments have been examined with the accelerated procedure within the time limit I mentioned above," he underlined.
He also referred to the need of businesses for financing. As he said, the discussion on the European Competitiveness Fund, as well as the creation of a Union of Savings and Investments in the European Union, is underway. "As the Presidency we will support policies that reduce barriers to the flow of capital, improve access for businesses to cross-border finance and by extension strengthen the competitiveness of European businesses," he said. He added that domestically, the creation of the National Organization for Business Development, for which the relevant bill is expected to be submitted to the Parliament in the coming weeks, aims to substantially improve the access of Cypriot businesses to financing, especially small and medium-sized ones.
In the same context, he also referred to the imminent privatization of the Cyprus Stock Exchange, the Cyprus Equity Fund, with a budget of €37.5 million, which has already made its first investments in start-ups and innovative businesses, as well as the Grant Schemes of the Ministry of Commerce that finance businesses with funds totalling more than €360 million.
"The dynamics, therefore, of our economy, with remarkable growth rates, with healthy public finances, with the debt already, a year earlier than we estimated, to be below 60% of GDP, the prevalence of full employment conditions, the stabilization of inflation, which is the lowest in the Eurozone and the surplus fiscal balance, combined with our reform plan, enhance the security, prospects and competitiveness of Cypriot businesses", underlined President Christodoulides.
At the same time, he added, the above allow the state to make targeted social interventions in Health, Education, Housing and in general all areas of social policy. "After all, this is also our clear political-ideological orientation of the Government, Social Liberalism," he said.
The same philosophy is reflected in the budget for 2026, he continued, which has a surplus fiscal balance, moderation of employment in the public sector, a downward trend in public debt, the promotion of reforms, a robust financial system and a real welfare state.
"In this great effort of ours, the contribution of the business community of our country and all the social partners, whom we see as institutional partners, as valuable partners, is catalytic. After all, the goal is common and the vision for business progress, for economic growth and by extension for social prosperity is common," he said in conclusion.
CNA
