Cyprus and Italy can act as bridges of stability and economic interconnection between Europe, the Middle East, and North Africa, according to Deputy Minister to the President Irene Piki. Speaking at the Italy – Cyprus Round Table with the business community at the Limassol Chamber of Commerce and Industry, Piki emphasised the growing importance of Mediterranean EU member states in the current geopolitical climate.
Cyprus and: Strengthening Cooperation Amidst Geopolitical Challenges
Piki outlined a shared understanding between Cyprus and Italy regarding the challenges and opportunities that lie ahead for Europe and the broader Mediterranean region. She noted that during President Nikos Christodoulides’ recent visit to Rome, the leaders of both nations agreed to formulate a joint Cyprus – Italy Action Plan. This initiative aims to deepen their collaboration across various sectors, including trade, energy, technology, and regional connectivity.
Economic Ties and Trade Potential
Referring to the economic relationship between Cyprus and Italy, Piki revealed that bilateral trade in goods and services surpassed €1.5 billion in 2025. She described this figure as indicative of both the extensive nature and the potential for future growth in their economic ties. “Italy is the second most important trading partner of Cyprus in terms of imports within the European Union. Nevertheless, there is still significant scope for balancing the trade balance,” she remarked.
Energy Cooperation as a Strategic Pillar
Piki identified energy as a crucial area of collaboration, highlighting Italy’s role as a strategic partner for Cyprus. This partnership is particularly evident through the activities of ENI and the ENI-Total consortium in Block 6 of the Cypriot Exclusive Economic Zone. She described recent developments surrounding the Kronos gasfield as particularly significant, noting that the Council of Ministers approved the development and production plan for the field last week.
“This development confirms that our energy cooperation in the Eastern Mediterranean is now entering the implementation phase, strengthening both regional cooperation and European energy security,” Piki stated.
Innovative Interconnection Initiatives
The Deputy Minister also highlighted new regional interconnection initiatives that are poised to create further economic cooperation opportunities. One such project is the BlueMed digital cable system, involving Italian company Sparkle and its connection to Cyprus through Cyta. Piki described this development as vital for enhancing the strategic interconnection of the region.
She added, “In combination with the dynamics of the IMEC economic corridor, it strengthens the role of the Eastern Mediterranean as a space for trade, data, investment, and strategic interconnection between Europe, the Middle East, and India.” This positions Cyprus increasingly as a regional hub for digital interconnection, logistics, and business services.
Emerging Opportunities in Defence and Technology
Piki pointed out that the strengthening of European strategic autonomy is opening new prospects for cooperation in the defence industry. She noted that Cyprus is gradually establishing a dynamic ecosystem of defence and technological innovation, with growing involvement from Cypriot companies and research institutions in European programmes and partnerships with major European industries.
“Moreover, there are significant prospects for cooperation in traditionally strong sectors of the Cypriot economy, including shipping and business services, while financial services and technology are also gaining momentum,” she added. In recent years, Cyprus has been attracting more international technology companies, which benefit from the country’s status as a European base with regional access, contributing approximately 14 per cent to its GDP.
Economic Growth and Stability in Cyprus
Piki highlighted that Cyprus recorded the highest growth rate in the European Union in the first quarter of 2026, reaching 3 per cent of GDP. This figure underscores the stability and competitiveness of the Cypriot economy, particularly in a challenging international environment. She remarked, “Cyprus, therefore, combines the institutional stability of the European Union with real operational access to the wider region. In a period of heightened geopolitical uncertainty, this is an important advantage for businesses and investors seeking stability, reliability, and a strategic perspective.”
A Commitment to Future Collaboration
Concluding her address at the round table, Piki conveyed a clear message that Cyprus and Italy are committed to further investing in cooperation, interconnection, and the common opportunities arising from the changing economic and geopolitical realities of the Mediterranean. These efforts aim to enhance both nations’ roles as pivotal players in fostering stability and economic growth in the region.
