Filenews 15 February 2026 - by Theano Thiopoulou
2026 is a year of continuation of the interventions of the Cohesion Policy Program "THALIA", with the main goal of completing projects that are at an advanced stage of implementation, but also maintaining the development momentum that has already been achieved.
The data collected and presented by Fileleftheros show that the projects that transform Cyprus continue and will upgrade the lives of citizens in Cyprus, through EU co-financing.
2026 is also a year of intensive preparation for the new programming period 2028-2034, according to Anthi Filippidou, Director of Cohesion Policy and Multiannual Financial Framework, so that Cyprus remains aligned with the new European strategic priorities.
At the same time, in the context of assuming the Presidency of the Council of the European Union in the first half of 2026, Cyprus has important files to negotiate, such as the new Multiannual Financial Framework and the new Regulatory Framework of Cohesion Policy, which makes 2026 a year of strategic importance at both national and European level.
Projects to be completed
Within 2026, important urban and social infrastructure projects are expected to be completed, such as the Multifunctional Park in Tsiakkilero and the Pattihio Park in Larnaca, the regeneration of the outer perimeter arch of the Moat in Nicosia, the regeneration of the urban fabric of Kato Paphos, as well as the creation of a space for sports activities and healthy employment in Sotira.
At the same time, in 2026, the new Nursing Foundation in Larnaca is expected to be put into operation, which is expected to strengthen social care infrastructure, while in the field of climate resilience, projects such as the construction of breakwaters in Pervolia and Oroklini with the aim of protecting beaches from erosion, as well as flood protection and flood decongestion projects in Larnaca and Limassol are being completed.
At the same time, the implementation of projects of multi-year character and strategic importance continues, such as the Nicosia perimeter motorway, the modernization of the electricity network, the upgrading of Technical and Vocational Education and Training, the establishment of a Technical School of Green Professions in Larnaca, water resilience projects and digital upgrade projects of public services and products. The implementation of Grant Schemes and Programs for research, support of entrepreneurship and employment of unemployed, young people and vulnerable groups also continues.
About €700 million was spent.
The total public expenditure of the "THALIA 2021-2027" Program amounts to approximately €1.5 billion, of which €968 million comes from the European Cohesion Policy Funds and €519 million from the state budget.
This is, Ms. Filippidou notes, the largest allocation of funds that Cyprus has ever received from the Cohesion Policy Funds of the European Union, which makes the Program one of the most important development financing mechanisms of the country during the current period. To date, about €700 million has already been spent, while 100% of the Program's budget has been activated through integrated projects, which ensures a steady flow of implementation in the coming years.
In terms of absorption, Cyprus has achieved the annual absorption target for 2025 and, according to the most recent data from the European Commission, ranks 4th among the 27 EU Member States in absorption rates for the "THALIA 2021-2027" Programme, confirming the systematic and effective management of European funds.
A pivotal year in 2025
It is not only the projects that will be implemented in 2026, but what matters is what projects were carried out in the previous year. 2025 was a pivotal year for the Cohesion Policy Programme "THALIA 2021-2027", as it was the year in which the Programme definitively moved from the activation phase to a trajectory of full and measurable implementation, with tangible results for citizens. According to the data, during the year, important projects were completed and inaugurated throughout Cyprus, covering critical sectors of economic and social life.
Indicatively, the state-of-the-art building facilities of the Faculty of Engineering of the University of Cyprus, which substantially enhance research, innovation and the connection between education and the economy, the Salina Municipal Park which Larnaca recently received the distinction of "Green City" in the category "Culture and Environment" at the Pancyprian Green Cities & Green Communities Awards 2025 and the Center for Creative Engagement in Larnaca, as well as the redevelopment of the Old GSP into a green and recreational area in Nicosia, an emblematic urban regeneration project.
In the field of green transition, the photovoltaic park of the Municipality of Aradippou was completed, while projects such as green and smart energy management at the University of Cyprus, the energy upgrade of homes and public buildings and the creation of zero-energy school units progressed.
At the same time, the social dimension of the Program had a particularly important impact, through actions related to child care, social inclusion and support for vulnerable groups. Programs such as the Tuition Subsidy and Feeding Scheme for Children up to 4 years old, child care and employment structures, home care services and supported living structures for people with disabilities, the operation of a Family Intervention and Support Center for Autism, as well as school and social integration actions demonstrate that "THALIA" is not limited to infrastructure projects, but it is an investment in people and contributes to the formation of an inclusive society. In total, by the end of 2025, more than 150 projects were in progress or had been completed under the Program, confirming that "THALIA" now produces measurable and visible results for the economy and society.
Positive balance sheet and tangible benefits
The report of the "THALIA" Program to date is particularly positive, explains Ms. Filippidou. "Cyprus has significantly strengthened its institutional capacity to manage large-scale European funds, achieving high absorption rates, timely budget activation and implementation of projects with a real social, economic and environmental footprint.
Most importantly, however, European funds now translate into tangible benefits for citizens' daily lives: better infrastructure, stronger social protection, more job opportunities, skills development, strengthening the family, supporting vulnerable groups and upgrading the quality of life."
As far as the next programming period is concerned, she notes, in a changing European environment, our goal is to maintain growth momentum, strengthen the social character of the Cohesion Policy, further support the green and digital transition and ensure that European funds will continue to act as a lever of sustainable and inclusive growth for the country. However, there are also challenges related to managing the complexity of a multi-fund Program, the coordination of many stakeholders and the need to adapt to changing economic, social and environmental conditions. The Director of Cohesion Policy and Multiannual Financial Framework points out that particular pressures are created by the energy crisis, climate change, increased needs for water resilience, as well as demographic changes and social challenges.
These challenges are addressed through continuous monitoring, institutional flexibility and timely modifications of the Programme to ensure that it remains aligned with the EU's strategic priorities and the real needs of Cypriot society.
