Cyprus budgets €1.28 billion for defence spending from 2027 to 2029

Nicosia, Cyprus. Cyprus has budgeted more than €1.28 billion for defence expenditure over three years, with the annual allocation set to more than double in 2027. The increase comes as the country advances military modernisation and begins implementing an investment plan backed by EU defence funding.

Defence allocations

The 2027 state budget, submitted to parliament on Thursday, provides €430.15 million for defence expenditure, compared with €176.8 million budgeted for 2026.

The Medium-Term Fiscal Framework provides a further €425.15 million in each of 2028 and 2029, bringing the three-year total to €1.280 billion.

The defence ministry’s overall budget is set to rise from €628.04 million in 2026 to €894.68 million in 2027, an increase of about €266.6 million, or 42 per cent.

EU funding

Cyprus has been allocated almost €1.2 billion through the EU’s €150 billion Security Action for Europe (Safe) instrument. In June, it received its first €177.2 million in pre-financing, equivalent to 15 per cent of its allocation.

The European Commission said at the time that the funding would allow Cyprus to advance defence investments, strengthen resilience and upgrade military capabilities in line with common European objectives. European Defence Commissioner Andrius Kubilius said the payment showed Europe’s commitment to common security and defence and would help Cyprus invest more quickly in the capabilities it needs.

A Commission spokesperson recently told the Cyprus Mail that Safe was intended to enable member states to jointly procure ammunition, missiles, air defence and ground combat systems. The spokesperson said joint procurement would improve interoperability and predictability, reduce costs and help strengthen Europe’s defence industrial base.

The Commission said member states receiving Safe loans remained in control of their investments, having submitted national defence investment plans approved by both the Commission and the Council.