KNews 31 January 2026 - by Martha Kehagias
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| European Commission gives Nicosia two months to close compliance gaps before possible escalation. File photo AI |
Cyprus named in multiple January infringement cases, from breakfast food labelling to digital finance and tax transparency.
The European Commission’s January infringements package has placed Cyprus under renewed scrutiny, with the country cited in a broad range of cases for failing to fully transpose or notify European Union legislation. While Cyprus is not among the Member States referred to the Court of Justice at this stage, the number and diversity of cases highlight persistent delays in aligning national law with EU requirements.
One of the most visible cases concerns the so-called Breakfast Directives, where Cyprus has failed to fully transpose Directive (EU) 2024/1438. The rules update EU standards on the composition, labelling and naming of everyday food products, including honey, fruit juices, jams and dehydrated milk. The revised framework strengthens origin labelling for honey, introduces reduced-sugar fruit juice categories and modernises consumer information requirements. Given Cyprus’s domestic honey production and food processing sector, the Commission’s letter of formal notice is of direct relevance to producers, retailers and consumers. Cyprus has two months to complete transposition or face further escalation.
Cyprus is also cited in financial services and consumer protection. The Commission has opened infringement procedures over the incomplete transposition of rules on financial services contracts concluded at a distance, which are designed to protect consumers purchasing financial products online or by phone, including a one-click withdrawal option. In parallel, Cyprus has failed to fully transpose the updated consumer credit directive, which aims to improve transparency and fairness in lending markets. These cases are particularly sensitive for Cyprus, given the importance of cross-border financial services and digital banking to the economy.
In the area of accessibility, the Commission has issued an additional reasoned opinion to Cyprus over remaining gaps in the transposition of the European Accessibility Act. The legislation requires key products and services, such as banking, electronic communications and emergency services, to be accessible to persons with disabilities. Despite progress since 2022, the Commission considers that significant shortcomings remain, and Cyprus now faces the risk of referral to the Court of Justice if corrective measures are not taken.
Cyprus is also named in security and justice-related cases. The Commission has sent a letter of formal notice for failure to fully transpose rules aligning the exchange of information on terrorist offences with EU data protection standards. The aim of the Directive is to ensure effective cooperation between Member States while safeguarding personal data. Cyprus has been given two months to notify complete national measures.
In energy and climate policy, Cyprus is among 16 Member States urged to withdraw from the Energy Charter Treaty, following the EU and Euratom’s withdrawal in June 2025. The Commission argues that continued participation by individual Member States, without EU authorisation, conflicts with EU exclusive competence over trade and investment. Cyprus has been formally called upon to take steps to exit the treaty without delay.
Taxation is another area where Cyprus features prominently. The Commission has launched infringement procedures for failure to fully transpose new EU rules on tax transparency and information exchange for crypto-assets, as well as updated provisions on administrative cooperation in taxation. These measures are intended to strengthen oversight, combat tax evasion and improve information sharing across the EU, particularly in relation to digital assets.
Finally, Cyprus is also cited for failing to fully transpose new EU rules on worker protection from asbestos, as well as updated requirements for budgetary frameworks, which include enhanced transparency, fiscal data reporting and consideration of climate impacts in national budgets.
Compared with other Member States such as Romania or Belgium, which face court referrals or long-running environmental cases, Cyprus’s infringements remain largely at an early procedural stage. However, the repeated appearance of Cyprus across food regulation, finance, taxation, energy and security suggests systemic delays rather than isolated oversight.
The Commission stresses that infringement procedures are intended to ensure uniform application of EU law, not to punish Member States. Nevertheless, failure by Cyprus to respond satisfactorily within the prescribed two-month deadlines could lead to reasoned opinions, court referrals and potential financial penalties.
