Press Releases

The focus of every government policy is to reinforce citizens’ sense of security in all sectors. 

Nikos Christodoulides: “Our vision, our primary objective and endeavour is to reinforce the daily life of all citizens in a changing Cyprus, constantly being reformed. With a responsible economic policy, a modern digital state, a model of transparency and accountability, with social sensitivities, compassionate, and inclusive. A state proud of its role in the region”.

The President of the Republic of Cyprus, Mr Nikos Christodoulides, outlined the policies, reforms, and significant projects planned by the government for 2025, while presenting the annual governance programme; an initiative which promotes transparency, efficiency, and accountability. Speaking at a dedicated event at the Presidential Palace, in the presence of political and state officials, representatives of institutions, social partners, organised groups, as well as civil society personalities, the President of the Republic of Cyprus presented the key actions for 2025, based on the following five main objectives:

1. Ensuring the economic growth of the country through a strong, resilient, and competitive economy, in order to invest further substantially in Health Care, Education, Welfare State, Culture, and Sports.
2. Digital Transformation of Cyprus, in order to have a reinforced citizen-friendly state and tackle bureaucracy and partiality.
3. State reform in order to restore trust among institutions and citizens.
4. Strengthening the citizens’ sense of security in all sectors.
5. Reinforcing the pillars of power of our country, thus supporting the effort to accomplish our key national goal, which is non-other than the end of Turkish occupation of our country.

The President of the Republic of Cyprus has set as the government’s vision and ambition the improvement of citizens’ daily life in a Cyprus which is constantly changing and being reformed. A modern digital state, a model of transparency and accountability, with social sensitivities, compassionate and inclusive, proud of its role in the region. A state which improves the quality of life of its citizens, where the focus of every government policy is to reinforce the sense of security of its citizens: in the workplace, in Health Care, in Education, in everyday life, SECURITY in all sectors.

OBJECTIVE 1

Strong, resilient and competitive economy

The Cyprus economy will continue to grow at one of the highest growth rates in Europe, despite the instability in the region and the fact that several powerful European countries are placed under scrutiny.

TAX REFORM

“In 2025 we build upon progress and continue with the same accountability”, stated the President of the Republic of Cyprus, highlighting that this year marks a significant milestone for the Tax Reform, which will be submitted for consultation in February. This reform aims at increasing the disposable income of households as well as promoting the growth of Cyprus businesses. For households, tax exemptions will substantially strengthen the middle class and contribute, inter alia, to addressing the housing issue and the major demographic challenge.

Regarding Cypriot businesses, President Christodoulides announced that there will be tax burden reductions, aiming at increasing competitiveness and exports.

PENSION REFORM

President Christodoulides addressed the launch of the Pension Reform, with the primary goal of ensuring dignified pensions. He stated that the investment policy of the Social Insurance Fund is being modernised, the institution of occupational pensions is reinforced, particularly in the private sector, and the social security system is being upgrading.

Other key policies for 2025 include:

• Compensation payments for depositors and bondholders who suffered from the 2013 “haircut” will commence in the first half of 2025.
• In cooperation with social partners, the modernisation of Cost-of-Living Adjustment (COLA) will be promoted, collective agreements will be extended, the minimum wage will be adjusted, and measures to address undeclared work will be addressed. Furthermore, a plan for the integration of recipients of minimum guaranteed income (EEE) into the labour market will be implemented.
• In view of strengthening the labour market and encouraging the return of Cypriot scientists, a repatriation campaign will launch, offering incentives and facilities for their relocation to Cyprus.
• In the field of Research and Innovation, for the first time, funding will be provided to promote the commercialisation of production lines for innovative products and services in the technology sector.
• In order to support business, the establishment of a Business Service Centre will be promoted. This will serve as the first point of contact between investors and the State, and it will provide personalised information as well as facilitating the licensing process.

HOUSING

To address the housing needs of more citizens, the state will allocate additional funding, with a budget of €75 million. Specifically, in 2025, the following, inter alia, will be implemented:

• The New Plot Allocation Scheme in communities, offering plots at 25% of their market value.
• The revised Housing Subsidy Scheme for Individuals up to 41 years old, with financial assistance up to €50,000.
• The revised refugee housing schemes of the Cyprus’ Service for Care and Rehabilitation of Displaced Persons, under which a greater number of young displaced persons will benefit.

At the same time, within the framework of the refugee policy, and in order to particularly support our young displaced persons, the President of the Republic of Cyprus announced an increased subsidy of 20% for all housing schemes for home acquisition in the countryside, in rural and disadvantaged areas. “Through our holistic approach to Housing, we are also contributing to the substantial revitalisation of the countryside, in which we are investing a further €30 million,” he stated.

PRIMARY SECTOR

In 2025, the implementation of the Strategy for the Development of the Primary Sector will commence, with a series of activities such as:

• The creation of a funding tool exclusively for farmers, facilitating their access to finance by utilising state subsidies as bank guarantees, thus addressing a long-standing weakness in the agricultural sector. 
• Further reduction in the time required for the payment of compensation.
• The utilisation of technology to improve crop yields and increase the income of our farmers.

TOURISM

In 2025, policy framework and incentive schemes for the creation of theme parks will be announced, and in the first half of the year, the first phase of the tender process for the Pafos Marina project will be launched. At the same time, in cooperation with local authorities and the private sector, the government will proceed with targeted actions to upgrade specific tourist destinations across the country.

INFRASTRUCTURE

The President of the Republic underlined that serving the public interest determines our decisions in their entirety, referring to the courage demonstrated by the government in terminating problematic contracts. With a view to addressing the long-standing issues in relation to delays or the non-implementation of public contracts, President Christodoulides referred to the modernisation of the legislative framework and the introduction of a new electronic system, which will ensure the efficient completion of major projects, whilst enhancing transparency.

The planning for 2025 foresees the advancement of major projects, with a total budget of more than €1.3 billion, as follows:

• Improvement of connectivity and reduction of traffic congestion in Lefkosia, through the implementation of the next phases of the Lefkosia ring road, with an estimated cost €120 million.
• The completion of documents for the Akaki-Astromeritis motorway, with an estimated cost €107 million.
• To address traffic congestion in Lemesos, projects totalling over €250 million will be implemented, including the launch of the first phase of the Northern Bypass.
• The studies of the second phase of the motorway to Saitta will be completed, with a total cost of €65 million.
• Larnaka Port and Marina projects will be launched, following a new procedure, agreed upon with the local stakeholders of the city.
• Both phases of the four-lane Pafos-Polis Chrysochous motorway will be implemented, at a cost of €330 million.
• Infrastructure projects are being planned and will commence in the free areas of Ammochostos District,with a budget of €60 million. The first phase of the Liopetri estuary will be delivered in the summer of 2025.
• Expansion of Latchi harbour, at a cost of €50 million.
• Construction of an industrial port at Vasiliko, at a cost of €350 million.

Strong economy, better future

The President of the Republic of Cyprus stated that a strong and competitive economy sets the framework for a “Better and Safer Future”, and responsible economic policy enables substantial interventions in Education, Health Care, Social Welfare, Culture, and Sports, as follows:

EDUCATION

• Establishment of a new, updated, and fairer teacher evaluation system.
• Further extension and substantial upgrading of the all-day-school system, with the inclusion of 60 additional primary schools, aiming for all primary schools to operate as optional all-day schools by 2028.
• Extension of the summer schools programme to all special education schools in Cyprus.
• Pilot implementation of Technical Gymnasium, a significant innovation which effectively links our education system with the needs of the labour market.
• Implementation of vocational guidance commencing from the sixth grade of primary school, the reinstatement of the work week programme in the second year of lyceum, and the extension of financial literacy education across all gymnasium classes.
• Under the vision of an inclusive school, the 1999 legislation on Special Education will be updated, and a specific policy for gifted children will be implemented.

CULTURE

Targeting incentives to promote culture as a significant economic activity, combining extroversion and innovation. A scheme to support technological and digital upgrading of cultural institutions to enhance the visitor experience, with the use of technology applications in archaeological sites and museums.

SPORTS

• Enhanced employability scheme for athletes who secure a place in the Olympic and Paralympic Games.
• Upgrading and modernisation of sport infrastructures, including historical stadiums (Tsireios Stadium in Lemesos and Makarios Athletic Centre in Lefkosia) aiming at, inter alia, the construction of a Paralympic and Indoor Sports Centre. Renovation of Glafkos Clerides Sport Centre in Agros and completion of the upgrade of Spyros Kyprianou Athletic Centre in Lemesos, which will host the Eurobasket 2025.

HEALTH CARE

A development programme for the modernisation of public hospitals in all districts, focusing on the Accident & Emergency Department, with projects worth €128 million. In particular, with regard to the challenges faced by the Accident & Emergency Departments, President Christodoulides announced the establishment of Immediate Medical Care Units, which will attend to cases requiring immediate (rather than emergency) care, with the aim of relieving congestion in the aforementioned Departments.

• Establishment of a National Cancer Institute and implementation of the National Prevention Strategy, through the expansion of population-based screening programmes.
• Construction of a new, state-of-the-art Paediatric Oncology Clinic, with a cost exceeding €8.5 million.

SOCIAL POLICY

As part of the modernisation of the social benefits policy, the President of the Republic of Cyprus announced the expansion of the beneficiaries of the child allowance, which will cover the entire middle class. The expansion includes an additional 16,000 children, who will automatically benefit from the Tuition Subsidy and Feeding Scheme for Children, with subsidies covering up to 80% of nursery school fees.

• Specific legislation will be introduced for all issues concerning our citizens with disabilities. President Christodoulides announced the decoupling of the disability allowance from the Minimum Guaranteed Income, which will result in an increase in both beneficiaries and allowances, thus meeting a long-standing and just demand of the disability movement.

• As part of the policy for the Elderly, the government is moving forward with the Support Programme for the Elderly at Home. This is a significant initiative which promotes coexistence and interaction, through a structured programme, in the context of the provision of social service by Universities.

OBJECTIVE 2

Digital transformation of Cyprus

The President of the Republic of Cyprus announced that 2025 will be dedicated to the Digital Transformation of the country, aiming at reducing bureaucracy, enhancing competitiveness of the economy and promoting transparency.

In particular, President Christodoulides outlined the following initiatives:

• The introduction of 60 new e-services, such as applications for student grants, reissuing of refugee identity cards, online employer registration, applications for the employment of third-country nationals, and applications for the renewal of temporary residence permits for employees in foreign companies, domestic workers, as well as the online enrolment of children in schools at all levels.
• The "Digital Citizen" platform is upgraded with new digital documents, such as the “Fan Card”, ID cards for minors, documents for foreign nationals, as well as providing access to young people over 16 years old. Additionally, interoperability with the Greek government's corresponding application will be completed.
• From the 1^st February, building permits for up to two residences will be issued within 20 days, as has been the case for town planning permits since last October. As a result, all permits for up to two residences will now be issued within 40 days.
• By March, the fast-track and automatic permitting system will be extended to medium-scale developments, such as apartment buildings of up to 20 apartments, with automatic issuance of town planning and building permits within 80 days.

• From March onwards, all social insurance payments will be made within 30 days.

OBJECTIVE 3

Emblematic reforms

“The state transformation, through the implementation of bold reforms, is the optimal way to enhance the relationship between citizens and the state,” the President of the Republic of Cyprus stated, adding that the objective is for our country to develop into a modern state, efficient, with credibility and integrity, both domestically and internationally.

He made special reference to the implementation of the emblematic institutional reforms for the modernisation of the Law and Audit Offices of the Republic of Cyprus, as well as to the reforms being introduced by the Central Bank of Cyprus regarding its governance, in accordance to the practice of other Eurosystem Central Banks.

In addition, the President announced the following:

• Increased efficiency in the governance of semi-governmental organisations, through the upgrade of the quality of their services, fiscal management, and investment policy.
• Establishment of a Long-Term Planning Unit, which will operate in cooperation with the academic community and the private sector as the Centre for Strategic Analysis and Forecasting, identifying future challenges and opportunities through the study of international trends and technological changes.
• In the sector of Justice, the institution of Arbitration is being modernised, thus contributing to the establishment of the Republic of Cyprus as an International Centre for Mediation and Arbitration.
• A new, separate Administrative Court of Appeals is established to provide greater specialisation and faster adjudication of administrative law and international protection cases.

"Everything mentioned thus far in connection to the reforms, significantly reinforces one of the key priorities of our governance, namely the need to strengthen the reputation and credibility of our country, as well as the clear political will of zero tolerance for corruption," the President said.

To reinforce this effort, legislation is being drafted to strengthen the State's power to prevent and investigate criminal offences, through the adoption of specific recommendations of the FBI, in addition to the establishment of a National Sanctions Implementation Unit and a Single Supervisory Authority. "These measures, as well as the international campaign to restore the reputation of our country, that has already commenced, change entrenched perceptions and render the Republic of Cyprus a reliable investment destination," the President of the Republic underlined.

OBJECTIVE 4

Strengthening security

DEFENCE AND FOREIGN POLICY

The President of the Republic of Cyprus referred specifically to the obligation of the State to reinforce the sense of security against internal and external challenges. He stated, in particular, that the instability in the region and certainly the ongoing Turkish occupation make it even more imperative to strengthen the security, defence capabilities and the deterrence power of our country. Towards this direction, but also in order to strengthen the role and international standing of the Republic of Cyprus, the President referred to the plan to upgrade the “Andreas Papandreou” Air Base and the expansion of the “Evangelos Florakis” Naval Base.

• In order to further meet the operational needs of the National Guard, the voluntary enlistment of women and the upgrading of the institution of reservists and guardsmen are also promoted, while retired officers are also included in the civilian conscription.
• "Our vision for Defence and Security in our country includes the ambitious, yet achievable goal of turning the Republic of Cyprus into a producer of cutting-edge defence systems. To this end, we are establishing Defence Industrial Cooperation Programmes within the year with the participation of Cypriot companies in arms procurement contracts," the President of the Republic of Cyprus announced, while making special reference to initiatives that contribute to the strengthening of the diplomatic footprint of the Republic of Cyprus.
• The President referred, in particular, to the undertaking of the Presidency of the Council of the European Union by the Republic of Cyprus in the first half of 2026, a milestone that is an opportunity to further highlight the role of the Republic of Cyprus as a bridge between Europe and our region, but also as a valuable, effective and reliable partner.
• Within 2025, strategic and developmental cooperation with states where the Republic of Cyprus has no diplomatic presence will be broadened. To this end, educational and humanitarian diplomacy will be harnessed through the upgraded Cyprus Aid agency.
• Cyprus' accession to the US visa waiver programme will be completed in 2025, while in the course of the year the key priority will be to complete the technical preparations for accession to the Schengen Area.

DOMESTIC SECURITY

"Strengthening the sense of security within our country is also a key objective," the President stressed and referred to the following:

• In 2025, the response by the Police to dedicated 112 emergency call number will be improved and more meaningful methods of coordinating and utilising information in police operations will be introduced.
• For the more effective management of critical incidents, the 24-hour support of the Police Departments and the quality of supervision will be enhanced through the creation of the Pancyprian Operational Officers’ Task Force.
• Legislation to combat sports-related violence and regulating the operation of fans’ associations in order to tackle the scourge of hooliganism will be brought forward within 2025.

EXTREME WEATHER EVENTS

The President of the Republic of Cyprus described the response to the multiple impacts of climate change as a challenge to security. To effectively address the issue, a Climate Law is being enacted with the aim of reducing the carbon footprint and adapting to climate change.

At the same time, the environmental licensing procedures are modernised and simplified, and the Department of Environment is reinforced through the newly established sector of environmental checks.

FIRE PROTECTION

Another important pillar of security is the handling of extreme climate incidents. To reinforce fire protection, provisions have been made to secure at least 11 aerial firefighting units to meet the needs of the wildfire season, including the acquisition of three state-owned aircrafts. The installation of fire detection systems in 12 industrial zones and the critical infrastructure across the country is also being promoted. Strengthening the sense of security also requires the modernisation of the Civil Protection system. Within 2025, the number of available shelters is being increased, and the creation of an online application for locating the nearest shelter is being promoted.

WATER SECURITY

The implementation of prompt actions to address water scarcity, inter alia, include: Installing mobile desalination units, upgrading irrigation departments’ infrastructure, utilisation of inactive and drilling of new boreholes and construction of new infrastructure to improve water supply to communities. The construction of small private desalination plants will also be subsidised and a water loss reduction programme will be implemented in cooperation with the District Self-Government Organisations.

ENERGY SECURITY

• Immediate implementation of the technology of Energy Storage Systems and further penetration of Renewable Sources in the energy mixture of the country. In this context, but also in order to reduce the cost of electricity, new Grant Schemes for energy storage for businesses and households will be launched. A new "Photovoltaics for All" scheme will be presented, particularly for small businesses, and the opening of the competitive electricity market will be completed.
• The Natural Gas import terminal at Vasilikos is on track for completion in order to reduce the cost of conventional power generation.
• Intensification of efforts for the exploitation of natural gas in the Republic of Cyprus’ Exclusive Economic Zone (EEZ), with at least two new drilling operations to be carried out at the targets "Electra" and "Pegasus", while on 17 February the President of the Republic will travel to Egypt to sign agreements for the commercial exploitation of natural gas from the "Kronos" and "Aphrodite" deposits.

MIGRATION

For the first time, repatriations exceeded the arrivals of irregular migrants, with the ratio reaching 170%, making our country the first in terms of returns, while arrivals also decreased by 70% compared to 2022.

• In order to implement our policy more effectively, the infrastructure upgrade of the "Pournara" First Reception Centre and the construction of the new Accommodation Centre and Pre-departure Centre at "Limnes" will be completed within the year.
• The integration of legal migrants and their utilisation in the Cypriot economy is another aspect of our policy on migration. "In cooperation with international organisations, we are formulating and implementing a Strategy for the Integration of legally residing migrants into Cypriot society," the President said.

OBJECTIVE 5

Reinforcing the pillars of power – Cyprus Problem

The President of the Republic of Cyprus concluded his presentation of the programme for the new year with a special reference to the efforts to break the deadlock on the Cyprus problem. “With a strong political will, acknowledged by everyone, we have managed to activate the international interest and create momentum towards the resumption of the talks”, he said, referring to the clear correlation between the Euro-Turkish relations and recent developments in the Cyprus problem, creating the conditions for a viable and lasting solution, on the basis of the agreed framework and of the European principles and values, through a mutually beneficial state of affairs. “I want to reiterate today that I will do the utmost to make full use of the upcoming extended meeting under the auspices of the Secretary General, which is expected to take place this coming March. In this context, I also look forward to my meeting on 10 February with the UN Deputy Secretary-General, Ms DiCarlo,” he added.

"With a view to the following day"

Concluding the presentation of the 2025 government programme, the President of the Republic of Cyprus referred to the 65th anniversary of the establishment of the Republic of Cyprus. “This year, marking 65 years since the founding of the Republic of Cyprus, we reflect on the historical evolution of our country with a view to tomorrow: we modernise our state with a Vision. We are reforming our country with determination. Together, we are changing Cyprus”, he remarked, emphasising that in nearly two years of governance, “we have been working methodically, implementing significant projects, of which we are proud of, and laying solid foundations for the country's course”.

Referring to the challenges, he stated that the message was clear. “Security is the common denominator of every development effort, every institutional reform, and every policy decision we make”.

He urged everyone to judge the government on its consistency between words and deeds. “Leaving the past behind, we remain committed to what really matters: the present and the prospects for tomorrow for a safe Cyprus, for the Cyprus of the New Era”, he stated. Moreover, he stressed that the 80+ policies and reforms announced were not an exhaustive list of what would be implemented in 2025, as they are included in the published Annual Action Plans of the Ministries for the current year. “These policies constitute another decisive step towards the change I promised to the Cypriot people”, he stressed.

He appeared firmly convinced that through the cooperation of everyone, the legislature and the judiciary bodies, the social partners, the organised groups, and the Cypriot people, we can transform our country. He concluded, “With the public interest at the forefront, the interest of the Cypriot people, of the many and not the few, we move forward, building together the future we deserve, in an already changing Cyprus.”

(MS/IA/GS/AS)