Significant interventions in the fields of energy, labour market, education and social protection are included in the five recommendations of the European Union to Cyprus for the period 2026-2027. In line with the content of the draft recommendations of the Council of the European Union on the economic, social, structural, fiscal and employment policies of Cyprus for the years 2026 and 2027, the European Commission calls on Cyprus to reduce its dependence on fossil fuels and accelerate the transition to a more diversified and sustainable energy model.
Priorities include developing energy interconnections with neighbouring countries, boosting investments in energy efficiency, upgrading the electricity grid and expanding energy storage infrastructure.
Cyprus, it is noted, remains highly dependent on fossil fuels, with oil and derived products accounting for 85.2% of gross energy consumption in 2024.In addition, Cyprus has one of the highest energy dependencies on imports in the European Union, as 87.7% of gross available energy in 2024 came from imports.
Efforts to diversify energy supply, through the inclusion of natural gas in the energy mix, are hampered by ongoing administrative delays in the construction of the liquefied natural gas (LNG) import terminal in Vasiliko.
At the same time, efforts to develop energy interconnections with neighbouring countries have been delayed. Notably, the Great Sea Interconnector project, which aims to end Cyprus' energy isolation, continues to face significant obstacles and delays. It is also stated that the high dependence on external energy sources makes renewable energy sources vital, not only for the decarbonization of the Cypriot economy, but also for improving the country's energy security and resilience to external energy crises. At the same time, it calls for the further promotion of sustainable mobility and public transport, with the aim of reducing emissions and phasing out conventional forms of energy.
Particular emphasis is also placed on the management of water resources and waste. The European recommendations provide for strengthening investment in infrastructure, upgrading the administrative capacity of local authorities, promoting the rational use of water and expanding the separate collection of municipal and packaging waste. At the same time, the improvement of the institutional framework for dealing with the effects of climate change is requested.
On the employment front, the EU points to the need to address labour shortages and improve job quality. Measures are proposed to enhance the participation of vulnerable groups in the labour market, to upgrade vocational education and training, to promote lifelong learning and to strengthen the public employment service.
At the same time, Cyprus is called upon to invest more in human resources skills, increasing student participation in STEM fields — i.e. science, technology, engineering and mathematics — as well as improving students' basic skills. An important chapter of the recommendations also concerns social protection. The EU is calling for an expansion of long-term care services, wider access for beneficiaries and a reduction in the high private costs borne by households.
Finally, it is proposed to strengthen support to vulnerable social groups, with special care for households facing energy poverty, ensuring adequate minimum pensions and increasing the supply of affordable and social housing.
