Cyprus sets vision for stronger Europe at Nicosia conference

Government officials, industry leaders and international institutions on Friday assessed Europe’s economic trajectory at the “Shaping Europe’s Growth and Competitiveness” conference held in Nicosia.

The event, organised by the Institute of Chartered Accountants in England and Wales( ICAEW), along with the Institute of Certified Public Accountants of Cyprus (ICPAC), placed the Cyprus EU Presidency agenda, economic competitiveness strategy and regional connectivity ambitions at the centre of discussions.

Speaking at the conference on behalf of the president Christodoulides, Deputy Minister to the President Irene Piki said that Cyprus intends to contribute substantially to a European agenda focused on competitiveness, resilience and economic security and autonomy.

The gathering allowed stakeholders to evaluate these strategic goals amidst a backdrop of geopolitical uncertainty and rapid technological change.

She stated Europe is operating in an environment shaped by geopolitical instability, technological disruption and accelerating green and digital transitions, adding that the need to strengthen economic resilience and competitiveness has never been more urgent.

“This discussion is central to Europe’s future. It concerns our ability to attract investment, support innovation and ensure sustainable growth in an increasingly competitive global environment,” Piki said.

“In this context, European strategic autonomy is becoming a key priority,” she continued. “Europe is working to reduce vulnerabilities in areas such as energy, digital infrastructure and supply chains while remaining open to international cooperation.”

She also stressed that a balanced approach is essential for long term stability and growth.

Moreover, she stated that Cyprus is actively contributing through its strategic geographic position, saying the island sits at the crossroads of Europe, the Middle East and Asia, allowing it to function as a bridge for investment and services.

Piki said that Cyprus has recently strengthened engagement with key partners in the Middle East and expanded cooperation with India, which she described as a country of increasing strategic importance.

She also mentioned that President Nikos Christodoulides will travel to India next week for meetings with Prime Minister Narendra Modi and for a series of events with the business community aimed at strengthening investment and economic ties.

She added that Cyprus has also deepened engagement with North America through missions to the United States and Canada, promoting the country as a reliable destination for investment, innovation and business services.

Piki placed particular emphasis on the India Middle East Europe Economic Corridor, describing it as a strategic initiative to enhance connectivity, trade and cooperation across three dynamic regions through infrastructure, energy and digital links connecting India, the Gulf and Europe.

She said the initiative aligns with Cyprus’ broader vision for strengthening interregional cooperation and diversifying economic relationships in a rapidly changing global landscape.

Turning to domestic performance, she said Cyprus provides a strong foundation for its outward-looking strategy, noting that GDP growth reached 3.8 per cent in 2025, following sustained strong performance in previous years.

She added that growth in the first quarter of 2026 was recorded at 3 per cent, the highest in the European Union, according to recent announcements.

She also highlighted labour market strength, saying unemployment fell to around 4 per cent in 2025, reflecting job creation and improved conditions.

Public finances have also improved significantly, she said, with Cyprus recording a budget surplus of 2.6 per cent of GDP in 2025, while public debt declined to around 55 per cent of GDP.

“These figures reflect consistent and responsible economic policy,” Piki said.

“They also strengthen Cyprus’ credibility as a stable and predictable economy within the euro area, a reality further supported by recent IMF assessments and credit rating upgrades, including continued improvements into the A category,” she added.

She stressed that “this stability is a key differentiator”.

Moreover, the deputy minister said that regulatory predictability and legal certainty are essential for investors and businesses.

“The Republic of Cyprus is determined to maintain a clear, transparent and credible regulatory environment that supports long term investment decisions and sustainable growth,” Piki said.

“At the same time, economic performance is closely linked to a programme of reforms,” she added.

Piki also outlined an ongoing reform agenda aimed at modernising the state and boosting competitiveness, with a strong emphasis on digital transformation, reduction of bureaucracy and improved public services.

She said a comprehensive tax reform was implemented earlier this year in close consultation with the Institute of Certified Public Accountants of Cyprus, modernising the system and improving compliance and transparency while supporting growth and investment.

She also referred to planned reforms in the pension system to ensure long term sustainability, alongside major projects under the recovery and resilience plan focused on digitalisation, green transition and innovation-driven growth.

“These reforms are not isolated actions. They form part of a coherent strategy to reposition Cyprus as a modern, competitive and resilient state,” she said.

She further stated that Cyprus is currently holding the presidency of the Council of the European Union, describing it as a responsibility the country approaches with a clear objective to strengthen Europe’s competitiveness, resilience and economic autonomy.

The deputy minister said support for business growth remains central, from early stage innovation through to expansion, stressing that Europe must strengthen its ability to scale companies globally.

She also highlighted the importance of trade and investment in a shifting global environment and the need to maintain open markets and strong international links.

Piki identified the functioning of the Single Market as a priority, saying “simplification, clarity and proportional regulation are essential to support cross border activity”.

“Energy policy”, she added, “remains a decisive factor for Europe’s competitiveness, with access to affordable, secure and green energy seen as fundamental”.

“Europe is at a critical crossroads,” Piki said. “The choices we make today will define our economic path for years to come”

“By strengthening competitiveness, advancing reforms and deepening international cooperation, we can ensure Europe remains a strong global economic actor,” she added.

“Cyprus is determined to contribute actively with credibility, consistency and clear strategic direction,” Piki stated.

On his part, Institute of Certified Public Accountants of Cyprus president Odysseas Christodoulou said that the conference comes at a decisive moment as geopolitical uncertainty, technological change and economic competition reshape growth models.

He stated that the agenda topics, including economic diplomacy, supply chain resilience, innovation, connectivity and the future of the Single Market, are central to Europe’s ability to remain competitive and attractive.

Christodoulou also stressed the importance of strategic leadership, innovation and international cooperation, adding that Europe must continue to strengthen its position as a trusted destination for trade, investment and talent.

The ICPAC president continued by saying that Cyprus has a significant role to play, highlighting its location at the crossroads of Europe, the Middle East, Africa and Asia, and its outward-looking economic model.

He added that Cyprus can further strengthen its position as a regional hub for professional and financial services, investment, technology and innovation.

Christodoulou also said Cyprus and the United Kingdom can act as key gateways linking Europe with neighbouring regions.

“The decisions Europe takes today will shape its competitiveness and prosperity for decades,” Christodoulou said.

“Cyprus has both the opportunity and responsibility to contribute to that future,” added. “We should approach today’s discussions with ambition, openness and determination.”

Meanwhile, ICAEW chief executive Allan Vallance said the global order is undergoing significant realignment, making cooperation between business leaders and the accounting profession essential for stability and growth.

He congratulated Cyprus on assuming the EU Presidency during a challenging period, highlighting the country’s strategic role in shaping European competitiveness.

In addition, he described Cyprus as a key connector between Europe, the Middle East and Asia, with strong professional services, regulatory frameworks and geographic advantages supporting its position as a trusted business hub.

Vallance also pointed to Cyprus’ growing importance in regional energy developments and its role in discussions around energy security and integration.

He added that Cyprus remains an important market for ICAEW, with one of the largest member communities outside the United Kingdom.

Additionally, he mentioned the strong educational links and professional ties between Cyprus and the UK, as well as the former’s role in producing high performing accounting students recognised internationally.

He added that ICAEW remains deeply committed to Cyprus and its partnership with the Institute of Certified Public Accountants of Cyprus, focusing on education, professional development and regulatory cooperation.

Vallance concluded by saying that the wide range of topics discussed at the conference reflects shared priorities for strengthening resilience, expanding trade and investment and supporting long term economic growth across Europe and beyond.