Newsroom
President Nikos Christodoulides on Thursday evening presented the government’s Official Planning for 2026, described as the “State of the Union 2026”, from the Presidential Palace, outlining more than 55 initiatives across all sectors and stressing that the government’s highest objective remains security in the economy, employment, education, health, and everyday life.
Opening with the Cyprus issue, the President said he is “cautiously optimistic” that the ongoing effort could lead to positive results, while reaffirming that the government’s top priority remains liberation, an end to the occupation, and reunification of Cyprus. He emphasized that there is no alternative to reunification except through a functional and viable solution within the framework of UN resolutions and compatible with EU principles, values and law.
Christodoulides said he is ready to resume negotiations “even tomorrow” from where they were interrupted in Crans-Montana, based on the UN Secretary-General’s framework and the negotiating acquis. He also stated that Cyprus’s strengthened domestic and international standing serves the overarching national objective of reunification.
The President underlined that all policies planned for 2026 are fully costed and implementable, adding that the government is now in a mature stage of delivering on what it promised through its governance program, which he described as a “social contract” grounded in social liberalism, combining individual progress with social solidarity and strengthening the welfare state.
Five governance priorities
He said the government’s planning is based on five pillars: an outward-looking foreign policy with a clear European–Western orientation and strong defense and security; a resilient economy; modernization of the state through reforms and digital transformation; transparency and anti-corruption; and improving citizens’ well-being through policies in health, education, housing and welfare.
Digital transformation, AI Factory and national supercomputer
In the area of modernization, the President announced that more than 100 new digital services will be introduced in 2026, alongside new information systems in the Social Insurance Department, Road Transport Department and the Police.
He said the “Digital Citizen” application, which currently serves more than 135,000 citizens, is being upgraded with new services including the ability to purchase sports event tickets and the issuance of a child identity card.
On artificial intelligence, Christodoulides announced that an AI action plan is being implemented and that the first Cypriot “AI Factory” will begin operating in the near future, providing access to supercomputing infrastructure. He also revealed plans for the creation of a national supercomputer in cooperation with an American technology giant.
The government is also preparing an age verification application aimed at protecting children online and ensuring safer use of social media.
Economy and major reforms
Calling a strong economy the driving force behind government policy, the President announced a landmark pension reform bill aimed at providing “better and more dignified pensions” in a sustainable manner. The reform is intended to strengthen pensioners’ income and reduce the pension gap between men and women.
To boost competitiveness and entrepreneurship, the government will establish a Business Development Organization to support and finance innovation, particularly among SMEs and start-ups, while modernizing the Companies Law to reduce bureaucracy and improve transparency. Christodoulides also said the privatization process of the Cyprus Stock Exchange will proceed in 2026 to improve its international competitiveness and expand SME access to financing.
IMEC, ports and supply chain plans
Christodoulides announced the creation of a modern supply chain network operating in synergy with Cyprus’s ports and airports. Special Supply and Storage Zones will be developed at Larnaca and Paphos airports, positioning Cyprus as a strategic partner in the India–Middle East–Europe Corridor (IMEC) and strengthening its role as Europe’s entry point for Asian and African markets.
He also said tenders for the construction of the port in Vasiliko will be announced within 2026, while studies for the development of Larnaca port are nearing completion.
Housing and welfare expansion
On housing, the President said the government has already invested more than €300 million and will continue expanding support. He announced that approximately 500 new housing units will be built on state land in cooperation with the private sector, with an estimated value exceeding €75 million, raising total government spending on housing measures to €375 million.
The Cyprus Land Development Corporation will be further strengthened through state funding and will construct 258 additional affordable housing units beyond the 180 already underway. Housing schemes will be revised to cover more beneficiaries, while urban planning incentives and the “Build to Rent” program are expected to generate around 2,000 housing units within two years. Christodoulides said faster licensing procedures have already benefited more than 5,500 families.
In broader social policy, he noted that social spending will increase by 6% in 2026, following a similar rise in 2025.
A new initiative titled “Together with the Baby and the Mother,” with a €4 million budget, will support new families through material assistance and home visits by a social worker for families with newborns up to one year old. Home care services for the elderly will also be upgraded with a €3 million budget.
The President said disability regulations are being updated through a bill that expands access to services such as a personal assistant, increases benefits, and includes individuals previously excluded due to income or property criteria.
The student grant scheme will be modernized, with funding rising to €62 million, expanded eligibility, and the removal of income and property criteria for families with five or more dependent children.
Education, culture and sport
In education, Christodoulides announced that the bill on Special Education will be submitted to make schools more inclusive. He also said curricula will be further modernized, focusing on skills such as critical thinking and proper management of artificial intelligence.
The government will create 60 new optional all-day schools and begin pilot implementation of two initiatives: a free breakfast program in kindergartens starting in Larnaca and free Famagusta, and the introduction of a social worker in primary and secondary schools to help combat violence and delinquency.
Technical and vocational education will continue expanding, with the Technical Gymnasium institution extending beyond Nicosia and Limassol to Paphos and free Famagusta.
On culture, the President said funding will rise by 20% to €160 million, including €15 million for cultural organizations and creators. An additional €4.5 million will support the cultural program of Cyprus’s Presidency of the Council of the EU, which he said marks the start of implementing Cyprus’s cultural diplomacy strategy.
In sports, he referred to the completion of the “Spyros Kyprianou” Sports Center, a project exceeding €15 million, and announced support for athletes with disabilities on equal terms with other athletes.
Health reforms and new infrastructure
In health, Christodoulides announced €145 million in funding to upgrade public hospitals in all districts. Projects planned for completion include renovation and expansion of the Nicosia Emergency Department, a new neurology clinic in Nicosia, upgrades to Limassol Hospital including new ICU and hemodialysis units, improvements to the emergency and radiology departments in Larnaca, and the creation of a pulmonology clinic in Paphos.
He also said procedures will begin for a new hospital in Polis Chrysochous.
The government will also move forward with establishing a Cyprus Food Safety Authority, creating a unified and independent inspection mechanism to protect public health.
Defense, security and migration
On defense and security, Christodoulides said tenders will be launched in 2026 for upgrading the Evangelos Florakis Naval Base and modernizing the Andreas Papandreou Air Base, in cooperation with the EU and the United States, while broader upgrades will also involve support from France.
He announced procurement programs totaling €1.2 billion through the European SAFE program, as well as additional cooperation with the United States, aimed at modernizing Cyprus’s defensive capabilities and supporting the domestic defense industry. He also referenced improved training for National Guard personnel, upgrades to the contract soldiers institution (SYOP), and modernization of equipment for reservists and volunteers.
On migration, he claimed Cyprus is no longer seen as an attractive destination due to the government’s holistic approach. He announced that subsidiary protection status or residence permits may be revoked from foreign nationals who commit crimes, enabling immediate repatriation. At the same time, he stressed Cyprus will pursue integration policies for legally residing migrants with respect for human rights and international obligations, while aligning with the EU Pact on Migration and Asylum.
Organized crime and prison reform
Christodoulides announced the creation of a Directorate for Combating Organized Crime, which will cooperate with foreign police services. He also said electronic monitoring of detainees will be strengthened.
To address overcrowding, the government will promote a full restructuring of the correctional system, including the construction of a new prison facility outside urban areas. Fast-track procedures will be introduced for returning foreign prisoners convicted of minor offenses, and deportations of migrants acting illegally will be accelerated. He noted that more than 1,000 individuals have been deported in the last two months.
Water management and climate resilience
In water management, the President announced the installation of three additional mobile desalination units in 2026, boosting Cyprus’s water balance by 50,000 cubic meters per day. This will raise the total number of desalination units operating within 2026 to more than 12. He said the government has already invested over €200 million in water management and that studies are underway for additional permanent desalination projects.
He also linked water resilience to Cyprus’s upcoming EU Presidency, saying the government will promote a Water Resilience Strategy contributing to the EU’s Climate Adaptation planning.
Civil protection and firefighting center
In civil protection, Christodoulides said construction of the Solea–Marathasa helipad is nearing completion, improving aerial firefighting, search and rescue capabilities. He also announced the rollout of an Early Warning System, targeted for full operation within 2026.
He added that Cyprus will promote, through its EU Presidency, discussions on the creation of a European Regional Firefighting Center on the island, an initiative previously referenced by the President of the European Commission.
Energy and natural gas agreements
On natural resources and energy security, Christodoulides said an agreement with Israel is expected to be signed in 2026 for the development and exploitation of the Aphrodite gas field. Detailed planning for development is also expected to be completed within the year, a milestone toward a final investment decision.
He also said developments are anticipated in the coming months regarding the Cronos field and the export of Cypriot gas to Europe. Commercial agreements for both Cronos and Aphrodite are scheduled to be signed in March.
Schengen and foreign policy outreach
Christodoulides said Cyprus will continue efforts, in cooperation with the European Commission, to meet technical requirements for full accession to the Schengen Zone, which he described as strengthening national security.
He also emphasized that Cyprus’s international role is being upgraded, describing the country as a stable and secure hub of cooperation in a geostrategically important region. With Cyprus preparing to hold the Presidency of the Council of the EU, he said the government will deepen engagement in Brussels and strengthen regional relations.
Following the government’s focus on Africa in 2025, he said Cyprus will pursue closer ties in 2026 with India and Central Asian states. He announced he will visit India in May at the invitation of the Indian Prime Minister, in a reciprocal move following what he called a historic visit to Cyprus.
Transport and infrastructure projects
The President also announced continued progress on major road projects. In 2026, construction will be completed on the Evrychou–Astromeritis and Nicosia–Palaichori motorways. Tenders will be announced for the Denia–Astromeritis motorway, the four-lane Polis Chrysochous–Stroumpi road, and the second phase of the Limassol–Saittas motorway. In Nicosia, additional phases of the Ring Road will continue, while in Limassol the first phase of the Northern Bypass will be tendered.
Land registry, urban planning and state land reforms
Christodoulides said the government will proceed with a redesign of Land Registry procedures through electronic submissions and a simplified transfer fee calculation method. A new framework for state land use will also be introduced, including open competitive bidding for high-value properties, improved rent review procedures, and expanded uses of state land in the public interest.
Urban planning reforms will include revisions of local plans for Nicosia, Limassol, Larnaca and Paphos, the creation of 10 pilot Urban Land Readjustment plans, a new simplified fee system for building permits, extension of fast-track licensing to listed buildings, and modernization of the building density coefficient transfer process.
Anti-corruption and investment screening
On transparency and governance, Christodoulides said Cyprus’s credibility is improving internationally, citing recent GRECO and EU Rule of Law reports. He said reforms have already been promoted in the Legal Service and Audit Office, and the Independent Anti-Corruption Authority has been strengthened.
In 2026, the government will also upgrade the Internal Audit Service and establish a National Mechanism for Screening Foreign Direct Investments, aimed at enhancing transparency and national security.
Concluding, the President reiterated that the government’s aim is to improve security and stability in every area of citizens’ lives, while continuing reforms and strengthening Cyprus’s position internationally as it pursues its core national goal of reunification.
