In his annual keynote speech at the Presidential Palace, President of the Republic of Cyprus Nicos Christodoulides outlined more than 55 priority initiatives to be implemented in 2026.
The presentation was devoted to strategic planning of public administration and covered a wide range of areas — from economics and energy to social policy, digital transformation and national security. The Head of State stressed that the country is entering a mature phase of realizing the promises made to citizens, and the ongoing reforms are already yielding tangible results in the daily life of society.
The President named security in the broadest sense — economic, social, energy and institutional – as the central concept of the entire program. According to him, a strong and stable economy is a prerequisite for the successful implementation of all reforms. At the beginning of 2026, the tax reform has already entered into force, reducing the fiscal burden and increasing the disposable incomes of the population. The next major step will be the reform of the pension system, aimed at increasing pension levels, financial sustainability and reducing the gender gap.
Special attention in 2026 is being paid to energy security. Cyprus expects to sign an agreement with Israel on the development and operation of the Aphrodite gas field, which should put an end to the long-standing issue of using national energy resources. At the same time, preparations for the investment decision are being finalized, and commercial agreements on the Kronos and Aphrodite fields are expected to be signed, including prospects for exporting Cypriot gas to Europe.
In the international arena, Cyprus is strengthening its position as a reliable partner with a clear European and Western orientation. In 2026, the country will actively use the presidency of the Council of the European Union, expanding its diplomatic presence and deepening ties with India and the Central Asian states. The President is scheduled to pay an official visit to India, which underscores the strategic nature of the cooperation.
Modernization of the National Guard is called a matter of national importance. Tenders for the renovation of the Evangelos Florakis Naval Base and the Andreas Papandreou Airbase will start in 2026. Due to the European SAFE program with a budget of 1.2 billion euros, Cyprus will receive modern defense equipment and support for the defense industry. At the same time, the training of personnel is being strengthened and the conditions of service are improving.
In the field of migration, the Government records a sharp decrease in illegal arrivals and an increase in deportations. It was decided to revoke the protection status of foreigners who have committed crimes, followed by rapid repatriation. At the same time, a deep reform of the penitentiary system is beginning, including the design of a new correctional facility and the introduction of enhanced electronic control.
Digitalization of the state remains one of the key directions. In 2026, more than 100 new electronic services will be launched, including updated systems in the police, Department of Transportation and Social Insurance. The Digital Citizen app, which is already used by more than 135,000 people, will receive new features and services.
A special emphasis is placed on the development of artificial intelligence. In the near future, Cyprus’ first AI Factory with access to supercomputing facilities will start operating, as well as a project to create a national supercomputer in cooperation with American technology partners.
Cyprus, as one of the most vulnerable regions of Europe to climate change, is strengthening measures to ensure water security. Over the past two years, more than 200 million euros have been invested in the water infrastructure, and in 2026 three mobile desalination plants will be introduced, increasing the water balance by 50,000 cubic meters per day. Preparations are also underway for the construction of new stationary desalination plants.
Healthcare will receive funding in the amount of 145 million euros for the modernization of public hospitals in all regions of the country. In 2026, key projects in Nicosia, Limassol, Larnaca and Paphos will be completed, and the construction of a new hospital in Polis Chrysochous will begin.
Social policy is being strengthened against the background of economic growth. Social spending has been increased, and new programs are being introduced to support families with children, students, the elderly, and people with disabilities. In education, the emphasis is on inclusivity, the development of digital and critical skills, as well as the expansion of professional and technical training.
The government has already invested over 300 million euros to solve the housing crisis. In 2026, affordable housing construction continues, housing programs are being reviewed, and incentives for the private sector are being expanded. Thousands of new housing units are expected to be built in the coming years.
At the same time, major infrastructure projects are being actively promoted, including the construction and modernization of highways, urban relief and the development of port logistics. Cyprus is betting on becoming a regional logistics hub on the India— Middle East—Europe route.
In general, President Christodoulides’ program for 2026 forms the image of Cyprus as a stable, technologically developing and socially oriented state capable of responding to modern challenges and strengthening the trust of citizens and international partners.
A source: in-cyprus.philenews.com
https://cyprusbutterfly.com.cy/news/prezident-kipra-predstavil-masshtabnyij-plan-reform-i-investiczij
