Cyprus approves €11.1bn 2027 budget as UK maritime cooperation advances

Nicosia, Cyprus. Cyprus’ cabinet approved the €11.1 billion state budget for 2027 on Wednesday, forecasting continued economic growth, a larger fiscal surplus and further reductions in public debt. The budget will be submitted to the House of Representatives for approval in December.

2027 budget forecasts

Finance Minister Makis Keravnos said the budget was designed to support development while maintaining fiscal discipline.

The 2027 budget is approximately €470 million higher than the 2026 budget.

Keravnos said growth in 2027 is expected to be around 2.9 per cent, with indications that it could exceed 3 per cent.

Unemployment is expected to remain at current levels associated with full employment and continue on a downward trend.

The government forecasts a fiscal surplus equivalent to 2.8 per cent of GDP in 2027, compared with 2.3 per cent in 2026.

UK maritime cooperation

Cyprus and the United Kingdom agreed on next steps to implement their maritime cooperation agreement following talks in London this week between Shipping Deputy Minister Marina Hadjimanolis and her British counterpart, Keir Mather, according to the Cyprus News Agency.

The meeting addressed issues of shared interest, including shipping industry competitiveness, the green transition and challenges facing global shipping. Both sides reaffirmed their commitment to strengthening bilateral cooperation.

Hadjimanolis said particular attention was given to implementing the Memorandum of Understanding between the two countries’ maritime administrations, with officials agreeing how to take the agreement forward.

The agreement was signed in February 2023 between the Cyprus Shipping Deputy Ministry and the UK Department for Transport. It covers maritime safety and security, decarbonisation, ship-source pollution, seafarers’ employment and welfare, maritime education and training, research and innovation, digitalisation and cyber security.