Cyprus: 2026 State Budget Approved, GSI Project Risks Highlighted

The Council of Ministers approved the 2026 state budget, totaling €10.7 billion, as stated by Finance Minister Makis Keraunos. Mr. Keraunos described the budget as balanced, noting that public debt is expected to decrease to 52.9% in 2026.

The budget takes into account a potential agreement regarding the Cost of Living Allowance (ATA). The budget presentation to the Parliament will take place on October 2nd.

Makis Keraunos warned about risks associated with the Cyprus-Greece electricity interconnection project (GSI), arguing that studies indicate it is not viable. He also mentioned the €67 million that must be returned to the European Commission for a project in Vasiliko, emphasizing that the issue has been factored into the budget and an offset with other funds is being considered.

Source: RIK Radio/Chrystallia Olympiou