Thanasis Photiou
Almost a decade after Crans-Montana, the Cyprus issue appears to be returning to the center of political developments. Whether this activity will lead to meaningful progress or simply add another chapter to a long history of unmet expectations remains the key question. For his part, Nikos Christodoulides says he is cautiously optimistic.
Q: Since the day after your election, you have invested significant effort in finding a way, what became something of a slogan, to give the Cyprus issue an "electric shock" so that negotiations could resume. Are the conditions now in place for a broader conference to be convened in the near future?
A: I had a very specific strategy for the Cyprus issue. One of my main goals was based on something the late Vassos Lyssarides often said: the need to make use of the interests of those involved.
I have said many times that Turkey will not move toward resolving the Cyprus issue unless it believes there is something to gain from a settlement. The only actor capable of offering those benefits is the European Union. Issues such as visa liberalization, the upgrading and modernization of the EU-Turkey Customs Union, and broader cooperation with the European Union are extremely important to Ankara.
With that in mind, we launched a specific strategy. First, we secured the appointment of an envoy from the European Commission, and now preparations are underway for a new appointment by the President of the Commission. In fact, we discussed specific names last week in Montenegro, where we met during the European Union-Western Balkans Summit.
This effort has intensified considerably since March, following the UN Secretary-General's visit to Turkey and his discussions with the Turkish president and foreign minister. We are working to align the Cyprus issue with EU-Turkey relations. It has required a tremendous effort. We fought hard in April 2024 to ensure that this linkage was included in the European Council conclusions. That is where things stand today.
Q: Regarding EU-Turkey relations, are you satisfied with the linkage that has been established with the Cyprus issue? What many observe is a Turkey that continues to receive benefits and ask for more, while there is still no progress on Cyprus.
A: Turkey has not received anything so far, but thank you for the question.
I would remind you that the European Council conclusions of April 2024 explicitly refer to an approach that will evolve in a gradual, proportionate, and reversible way. Therefore, Turkey will not receive anything without giving something in return. Nor is there any possibility that it will receive benefits and then fail to do what is required on the Cyprus issue.
In fact, any concession to Ankara must be preceded by tangible progress on Cyprus. That is exactly what we are working on intensively right now. So there is no such possibility.
Q: What framework will be used? Are we returning to where we left off in Crans-Montana, as has been our position? Within what framework will the new process take place? Has that been clarified?
A: I discussed with the Secretary-General how the process should move forward during our meeting in Brussels in March, just a few days after his meeting with Mr. Erdoğan in Ankara.
We discussed the path ahead, but I do not want to go into details because I do not want, in any way, to jeopardize what I consider to be a very promising effort, one about which I remain cautiously optimistic.
The key to this effort is the convergences that have already been achieved on the Cyprus issue. I would remind you that Mr. Erhürman, in his four-point proposal, also speaks about the need to safeguard those convergences. That has always been our position as well. It is what I have been saying from day one.
So, when it comes to the framework, let us keep in mind that the convergences represent the common approach.
Q: Information coming from reporting does not reflect what you stated publicly in your interview with Emilia Kenevezou, namely that "it appears Turkey has quietly given the green light for substantive talks from where they left off in Crans-Montana." Instead, sources speak of "constructive ambiguity." There is no reference to Crans-Montana or even to the form of the solution. Are we entering a process with an undefined and unclear framework? Are you willing to discuss anything other than a bizonal, bicommunal federation in order to unlock the process and achieve progress?
A: There is absolutely no constructive ambiguity.
In the Cyprus issue, constructive ambiguity is dangerous. We experienced it in 2004, when there was a great deal of what became known as the British concept of "constructive ambiguity."
The effort currently underway concerns the substance of the Cyprus issue and its major chapters, where constructive ambiguity cannot exist. Take security and guarantees, for example. Either Turkey will continue to have guarantor rights in Cyprus, or it will not. There is no middle ground and no room for constructive ambiguity.
We are not going to enter a process, nor arrive at an outcome, that contains even the slightest ambiguity.
There is something else I have said many times because I want to be completely clear with the Cypriot people. First and foremost, I must agree with the content of any proposed solution myself.
If we reach an outcome, and I will not allow any outcome to be imposed on me, that I do not consider satisfactory for the Cypriot people, then I will not even put it before them.
Q: So there will be no shifting of responsibility onto the people?
A: Exactly.
Q: Regarding Crans-Montana, Mr. President, António Guterres said that "by the end of the conference, the parties had practically reached full agreement on federal executive power and effective participation." You yourself, as foreign minister, said that we had come within a hair's breadth of a solution. Mr. Kotzias was even more specific, saying, "On Thursday night we went to dinner satisfied because we believed we had obtained everything we wanted."
Those gains included the abolition of guarantees and intervention rights, from which Mevlüt Çavuşoğlu later retreated, leading to the collapse of the talks. In short, are those the missing pieces needed to complete the puzzle of a settlement, or are there other outstanding issues as well?
A: The goal of the effort currently underway is to reach an outcome in which the issues that remain unresolved, because there will obviously be some outstanding matters, are not capable of preventing a settlement of the Cyprus issue.
To be more specific, the main chapters of the Cyprus issue are governance, security, guarantees, property, and territory.
The discussions taking place right now concern the substance of the Cyprus issue. At the same time, there is also the very specific preparation and discussion regarding EU-Turkey relations that I mentioned earlier.
Our objective has always been to connect these two areas, and we are now seeing that connection begin to take shape in practice.
Q: Recently, you said: “All of us will be called upon to make important and potentially difficult decisions.” Can you explain what you mean by “difficult”?
A: The difficult decisions begin with being honest with the Cypriot people. A solution to the Cyprus issue will not be perfectly just, because a truly just solution would restore the situation exactly as it was before 1974. I think everyone understands that this is not something that can be achieved through negotiations.
What matters is that any solution we reach is functional and sustainable.
Q: Returning to the pre-1974 situation may have seemed fair to us, but could it have been unfair to the other community?
A: I am often asked about issues I have also studied academically. For me, the greatest missed opportunity in the Cyprus issue was 1960. Neither Greek Cypriots nor Turkish Cypriots invested in the Republic of Cyprus. We need to be honest about that.
For me, two things matter most in any solution. First, it must be functional, meaning the state must be able to operate effectively both at home and internationally. Second, it must be sustainable. I am not prepared to put Greek Cypriots through another test only to find ourselves, five years after a settlement, in a situation similar to that of 1963.
Q: The President of Turkey, rather than adopting a softer stance, continues to return to issues such as the “Blue Homeland” doctrine, making demands and using strong rhetoric. Yet you believe he has shown some flexibility in his dealings with the United Nations?
A: That is precisely why I said all of us will be called upon to begin this effort, based on two important and substantive discussions. One was between the UN Secretary-General and the President of Turkey in Ankara, and the other was the discussion I had with the Secretary-General in Brussels.
We will all be judged by what happens at the negotiating table. The decisions will not be easy once negotiations begin. Every issue in the Cyprus problem is important. Every single one of them. That includes the issues considered most significant and those that may appear less important.
However, as I said earlier, there must be two guiding principles. Any solution must be functional and sustainable.
Q: Given these circumstances, how realistic is the goal, which you yourself mentioned, of having a settlement plan by the end of the year?
A: If there is political will, that goal is entirely realistic.
Even if a comprehensive settlement is not reached by the end of the year, we should at least have established a process that demonstrates an irreversible political commitment to reaching a solution.
Q: In other words, the process should already be underway?
A: Exactly.
There may still be unresolved issues and, I repeat, all issues in the Cyprus problem are important, but they should not be capable of derailing the process.
Q: Are Greek Cypriots today closer to or further away from the idea of a settlement? Given that returning to ancestral homes, once a central objective of a solution, has become less prominent over time because of generational change and the failure of previous efforts, what argument would you make as President to persuade Greek Cypriots to vote “yes” to a settlement plan?
A: The situation we are living with today is neither sustainable nor capable of securing the future of Greek Cypriots and the Republic of Cyprus.
We saw what began in Gaza in October 2023. We are now in the summer of 2026, and that tragic situation continues right next to us.
If a settlement plan is presented to the Cypriot people that is sustainable, functional, and addresses their concerns, then I believe the public will respond positively.
I will not put a settlement plan before the Cypriot people unless I personally agree with it first. If I support it and trust it, I will go out and meet people myself, speak to them directly, and advocate for it.
There is also an important difference between today and 2004. The Republic of Cyprus is now a member state of the European Union.
The foreign policy we pursue is directly linked to the Cyprus issue. The role we play, what we can contribute, and the international relationships we build will all be strengthened through a settlement, to the benefit of both Greek Cypriots and Turkish Cypriots.
I do not exclude our Turkish Cypriot compatriots, the majority of whom want a future in a European country and in an EU member state, despite the current circumstances.
Q: After so many years of exhaustive efforts, including negotiations over the smallest details, does another collapse in talks risk making partition an accepted, entrenched, and irreversible reality in the eyes of the international community?
A: I do not put much stock in so-called “last chances,” because we have heard that phrase many times before. However, another failure would certainly not be a positive development.
If you look at settlement plans throughout the history of the Cyprus issue, even before the Republic of Cyprus was established, every new proposal that followed a breakdown in negotiations was worse than the one before it. That was true at least until 2004.
After 2004, and particularly during the Crans-Montana negotiations in which I participated, many of the convergences and provisions that were agreed upon were clearly better than those of the past. The reason for that was not necessarily our negotiating skills.
The reason was Europe, which provides a very specific framework for how states operate.
Today, there is a clear trend within Europe toward closer cooperation and coordination, partly because of international developments that the Republic of Cyprus supports. I believe this European reality provides the secure overall framework within which a solution to the Cyprus issue can be achieved.
Cyprus on the world stage, challenges at home
From geopolitical outreach to India and the Gulf to energy, housing, the economy, and the water crisis.
Q: Over the past two years, you have traveled more than any previous president, investing heavily in foreign policy. What do you consider your most important achievement in this area?
A: The greatest achievement is that today the Republic of Cyprus is viewed internationally as a country of stability and reliability. It is seen as a country that contributes to solutions and one that an increasing number of states want to work with.
Foreign policy has a direct impact on people's daily lives. When we had to address the water crisis, we secured desalination units from the United Arab Emirates within a week. When we were facing increased migration flows from Lebanon, we succeeded in securing the involvement of the European Union and a support package for Beirut. The same happened during the wildfires, where the relationships we have built with countries in the region helped ensure an immediate response.
Q: Your recent visit to Astana, together with your outreach to New Delhi and close ties with the United Arab Emirates, suggests a deliberate shift toward Eurasia and the Gulf. What are the tangible benefits?
A: I am pleased that the Cyprus issue is no longer the only topic of discussion during our international contacts.
The visit of the Indian prime minister to Cyprus after 23 years, along with my own visit to India, produced concrete results. We secured the first major Bollywood production in Cyprus, while Cypriot banks have already established or are preparing a presence in the Indian market.
Similarly, in Kazakhstan, the visit itself carried particular significance, while the public statements by the country's leadership in support of international law were especially valuable for the Republic of Cyprus.
Q: How do you assess the recent signing of the SOFA agreement with France?
A: It strengthens the Republic of Cyprus' multifaceted strategic partnership with France, particularly in the areas of defense and security.
The agreement establishes the necessary framework for hosting French forces in the Republic of Cyprus for humanitarian purposes. The importance of such a presence for the Eastern Mediterranean and the Middle East is clear, and it further strengthens the role of the Republic of Cyprus.
At the same time, by signing the SOFA agreement, Cyprus and France are making an important contribution to achieving our shared European objective of strategic autonomy for the European Union.
The risks surrounding the electricity interconnection
Q: In your recent interview with To Vima in Athens, you said the project would be completed despite the challenges. However, the European Investment Bank has yet to complete its reassessment of the project's financial viability, funding remains unresolved, and there is also the very predictable behavior of Turkish naval vessels.
A: The interconnection is a strategic necessity and a key pillar of our energy policy.
That is why, in coordination with Kyriakos Mitsotakis, we moved ahead with updating the technical and economic studies. It was a responsible political decision. We are not making decisions based on the next election. We are making decisions based on the needs of future generations.
Our goal remains connecting Cyprus to Europe's energy network and reducing electricity costs for consumers. At the same time, we are increasing the share of renewable energy sources and investing in energy storage, which is a critical component of our overall energy strategy.
Q: Is there interest from Abu Dhabi investment funds in participating in the project? And what is the government's plan if the interconnection ultimately does not proceed?
A: There is interest from countries and investment funds in the region, and discussions are taking place.
At the same time, we are working on alternative options. We are examining the prospect of an energy interconnection with Lebanon, a connection with Israel, and other ways of strengthening Cyprus' energy links with the region.
However, connecting to the European energy network remains our primary strategic objective.
Wage inequality and the middle class
Q: What is your response to those who say the government devotes more attention to the international stage than to domestic problems?
A: Cyprus is recording one of the highest growth rates in the European Union. Unemployment is at its lowest level since 2008, and Cyprus has returned to the A category of international credit ratings for the first time since 2011.
This progress has allowed us to increase the minimum wage twice, significantly expand social spending, move forward with tax reform, and implement policies that support society.
Q: The numbers look good. Why, then, do many citizens feel they are not sharing in this growth?
A: I completely understand why many people feel that way.
The true measure of economic success is whether the middle class is getting stronger. That is why we moved forward with tax reform and pension reform.
I want the positive performance of the economy to be reflected more and more in the daily lives of citizens. At the same time, we are investing in sectors that create better-paying jobs, such as technology, so that economic growth translates into real opportunities for young people.
Q: Wage inequality continues to grow. Higher salaries rise more easily and more quickly, creating a misleading picture around the average wage.
A: That is exactly why I insist that the success of the economy must benefit the middle class and lower-income groups. This does not happen automatically. It requires targeted policies.
For example, the campaign to encourage Cypriots working abroad to return home is part of that effort. When we launched the initiative, many people mocked it. Yet in London we saw tremendous participation, and a significant number of Cypriots have already returned to the country.
Cyprus' greatest advantage is its people. If we invest in them properly, the prospects are excellent.
Yes, there are problems. Yes, there are citizens who are struggling. That is why we implemented tax reform and increased the tax-free income threshold and workers' disposable income. That is also why we are moving forward with pension reform.
I often meet people who describe the difficulties they face because of low pensions. Those conversations directly influence our policy decisions. I do not live disconnected from society. I am among people every day, and I bring these issues into Cabinet meetings as well.
The housing challenge
Q: Is housing becoming a major social crisis? Young people are finding it increasingly difficult to buy a home. Are there real solutions?
A: It is undoubtedly one of the biggest challenges we face.
That is why we are placing particular emphasis on increasing housing supply and making use of every available tool. We have effectively revitalized the Cyprus Land Development Corporation, invested in the use of state land for affordable housing projects, implemented the Build to Rent program, and introduced planning incentives that will significantly increase housing supply in the coming years.
At the same time, thousands of beneficiaries, mainly young people and young couples, have benefited from state housing schemes.
I am not claiming that the problem has been solved, but I believe the policies we are implementing can contain it and gradually address it.
Monitoring major strategic investments
Q: Foreign investment is welcome, but there is also concern that land and strategic sectors of the economy are gradually passing into foreign hands. Does that concern you?
A: If I said it did not concern me, I would not be telling the truth.
It is something we watch very closely, and we are prepared to act whenever necessary. That is precisely why we recently introduced measures concerning the review of major strategic investments.
There is now a specific screening process to determine who is investing, where they are investing, and under what conditions.
We want foreign investment. It is essential for economic growth. At the same time, however, we want full transparency and we want to prevent excessive dependence on specific sources of foreign capital.
Waiting for natural gas revenues
Q: In 2017, Stavros Malas said something that has recently been on my mind: “One day halloumi will generate as much revenue as natural gas.” Given that natural gas has not yet generated revenue, while halloumi faces risks if the foot-and-mouth disease outbreak is not contained, could that prediction end up coming true for the wrong reasons?
A: Based on the steps that have been taken and the agreements currently moving forward, our goal is to see the first revenues from natural gas by late 2027 or during 2028.
Important decisions have already been made, and further announcements are expected in the coming period.
A great deal of negotiation has taken place with both Egypt and the companies operating in Cyprus' Exclusive Economic Zone. At the same time, we are in discussions with other major energy companies regarding the development of additional blocks within Cyprus' EEZ.
European Union and reforms
Q: I recently covered delays in Cyprus' compliance with EU legislation. While I expected the issue to be held up in Parliament, much of the responsibility appears to lie with ministries and the Law Office.
A: That is one of the reasons I have decided that the Deputy Ministry for European Affairs will not be abolished after Cyprus' EU presidency is completed, as happened in the past.
The Deputy Ministry for European Affairs is not a foreign ministry and does not deal exclusively with European Union affairs. It will continue to operate because it plays an important coordinating role across all matters relating to the European Union.
Europe is not just about foreign policy. It affects our daily lives. A large share of the decisions taken by the Council of Ministers is directly linked to European legislation and the country's obligations.
