Address by the President of the Republic of Cyprus, Mr Nikos Christodoulides, at the EIB Board Retreat

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30/09/25 14:39 | Speech / Address | President of the Republic / Presidency, European affairs, Economy and Finance, Cyprus Presidency of the Council of the EU 2026

It is a great pleasure to welcome the European Investment Bank (EIB) Board and to be in position to extend the unparalleled Cypriot hospitality to you. And beyond the opportunity to welcome you, your presence here, at the Union’s southeastern most corner, reflects a cornerstone of the EIB’s mission: to ensure that each and every member state reaps the full benefits of EU membership and, subsequently, of the European Union (EU) policies.

The lifespan of the EIB goes in tandem with that of the EU. Far beyond being the financial arm of our Union, the EIB is an integral part of the Union’s ambition to be a space of growth, stability and prosperity. The impact you have had on employment, technological innovation, for Cyprus especially on the support to Small and medium-sized enterprises (SMEs), infrastructure, energy security, environmental sustainability – just to name a few – is unrivalled.

Our common home, the EU, the greatest achievement and political project of the 20^th century, stands today at a crossroad, at an inflection point.

The multitude and complexity of the challenges we face appear at face value, to be daunting:

From rising and expanding geopolitical tensions, erosion of rules-based international order, to the urgent call for green and digital transition and the imperative needs to boost our competitiveness.

There is no space or time for hesitation or complacency.

Now is the time for decisive urgent action to transform this moment of shift into an opportunity to deliver – drawing strength from our unity and building on our resilience.

Now is the time for autonomy – from our standing as a global actor and our security to our economy and trade. Autonomy across the board.

In this vision, the EIB has a central, decisive role to play. Your history is tangible proof that the EIB Group is an irreplaceable partner in transforming European aspirations into tangible outcomes, empowering citizens, regions, and enterprises to fulfil their potential.

This mission carries special purpose and significance for my country, for Cyprus – the Union’s last divided member state, under military occupation, an island in the heart of the Eastern Mediterranean where it stands as a safe harbour and as a bridge between this geopolitically very complex yet important region, and Europe. At the same time, the EIB’s mission reflects both the opportunities and the challenges that smaller economies face within the European project.

Undoubtedly, the EIB has been a trusted partner in helping Cyprus embrace new opportunities, reform, transform, change. In times of crisis, the EIB has stood firmly by our side on the path to recovery. Today, at a time when the Cypriot economy is showcasing solid growth, the EIB remains a reliable partner in our economy’s steady growth path.

In fact, despite global challenges, the Cyprus economy has shown consistent resilience. In 2024, Gross Domestic Product (GDP) grew by 3.4 percent, one of the highest in Europe, and it is expected to grow more than 3% in 2025. Through a responsible fiscal policy, the government records healthy budget surpluses, and public debt has been reducing steadily, expected to fall at 58% of GDP by the end of this year, and 52% – 53% by the end of 2026. This has resulted in strong investment-grade ratings from all leading international credit rating agencies, A-level rates since 2011. Moreover, unemployment dropped below 5% in 2024, the lowest since 2008, while job vacancies are increasing, which is a clear sign of our growing economy.

This is the path we will continue walking as Government: Of fiscal responsibility and stability. That is the only path that opens the way for social policies with impact in education, health, housing, social welfare.

The EIB has been an enduring and steadfast partner on this path of responsibility and growth. The Bank has invested more than €5.7 billion in our country, making Cyprus the largest per capita beneficiary of EIB support among EU member states.

And you have invested in Cyprus not only by providing finance to major investment projects, but also through other means. By offering flexible financing, expert advice, and support in project development, the European Investment Fund has helped drive investment in key sectors of our economy – fostering innovation, strengthening competitiveness, and laying the foundations for sustainable growth.

Examples of initiatives include the Cyprus Entrepreneurship Fund, which has expanded access to finance for small and medium-sized businesses across the country, promoting entrepreneurship and innovation. At the same time, the Cyprus Equity Fund, the first public private fund providing early-stage capital to promising startups is giving new ideas the chance to grow and flourish.

Through these projects, and essentially by enhancing the capacity of Cypriot enterprises, backing strategic initiatives, and aligning European priorities with national needs, the EIB has delivered visible benefits that have had a real impact on the everyday lives of our citizens. Moreover, this ongoing support has complemented our own efforts to build a resilient and forward-looking economy, with great emphasis on reforms.

That is our driving force, our vision – reforms that modernise our state, creating accountability, transparency, opportunity. Fulfilling our responsibility to the citizens who put their faith in us to deliver. And we are accountable only to them, to our citizens.

A moment of immense responsibility and opportunity lies ahead for Cyprus. In the first half of 2026, Cyprus will assume the rotating Presidency of the Council of the European Union. A significant milestone for my country, a priority for my Government and an opportunity that comes along once every 14 years, to be at the forefront and to contribute actively to the shaping of Europe’s future. Cyprus is ambitious, pragmatic, and determined to act as a genuine honest broker, working in a results-oriented way and in close cooperation with all member states and EU institutions. A member state deeply committed to the European project and EU values, convinced of its transformational character. A member state that after 21 years of membership is ready to lead, not merely by “handling’ files” but negotiating solutions.

We are fully cognisant that our Presidency comes at a time of inflection for the Union. Aware of what is at stake. Of the urgent need to deliver a stronger, more secure Union, one that is resilient and competitive. At the forefront of innovation. Autonomous. With policies that have a real impact on the daily lives of our citizens.

In the midst of turmoil, the EU emerges with a stable, responsible global actor. And we need to project and strengthen this capacity. Through strengthening international partnerships. Putting at the forefront cooperation with the region of the Eastern Mediterranean and the Greater Middle East as an indispensable component of the Union’s autonomy and competitiveness, our Presidency will be guided by the principles that support Europe’s long-term stability and development and that leave no region and no citizen left behind.

At the same time, our Presidency will place key issues high on the agenda: defence and security, civil protection, migration and the protection of our borders, water resilience, affordable housing. On competitiveness, we will focus on simplification so that European businesses can thrive. With regard to the new Multiannual Financial Framework (MFF), we believe it must encapsulate and enable the realisation of our strategic vision. And it will be one of the key priorities for our Presidency. As you know very well, in light of the Commission’s proposal for the 2028 – 2034 MFF the EIB is expected to play an increasingly significant role in mobilising funds, in financing the critical investments needed to achieve the Union’s strategic priorities.

In this context, the partnership between Cyprus and the EIB will remain indispensable. Our close collaboration with the EIB Group is instrumental in ensuring that our goals are not only ambitious in vision but also effective in practice. Together, we can translate strategic priorities into tangible outcomes, demonstrating the power of cooperation and the shared commitment that underpins the European project. In this respect, we look forward to your support for EU and national priorities, like security and defence, research and innovation, civil protection etc.

In closing, allow me to extend my warmest appreciation for the trust, collaboration, and commitment of the EIB. Your presence here and the work we pursue, and will continue to pursue together, exemplify the spirit of partnership that drives Europe forward.

I am confident that the deliberations of these meetings will generate renewed momentum, shaping not only the Europe of today, but also the Europe of tomorrow.

On this path, rest assured that Cyprus will continue to stand as a reliable and predictable partner, committed to leveraging its strategic position to foster sustainable growth, innovation, and investment. In close collaboration with the EIB, we will continue working to foster an environment where both public and private initiatives can flourish, where strategic priorities are effectively implemented, and ensure that the benefits impact the lives of all citizens.

And above all, rest assured that Cyprus will always be part of the solution and never part of the problem.

(RM/MS/LY)

Address by the President of the Republic of Cyprus, Mr Nikos Christodoulides, at the EIB Board Retreat

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