Cyprus is positioned as a strategic partner capable of shaping Europe’s future, according to Kyriakos Kakouris, the outgoing Vice-President of the European Investment Bank (EIB). In an interview with the Cyprus News Agency (CNA), Kakouris reflected on his two decades with the EIB, marking his tenure as a pivotal time for both the bank and the island.
A Legacy of Leadership
Kakouris, who made history as the first Cypriot to hold the Vice-Presidency at the EIB, described his time in office as both productive and challenging. “Europe faces significant challenges — from the energy crisis and climate change to social inequalities and geopolitical uncertainty. As Europe’s financial arm, the EIB must live up to citizens’ expectations, and I believe we are achieving this,” he stated.
Cyprus: More than a Beneficiary
In his remarks, Kakouris emphasised that Cyprus should not be viewed merely as a beneficiary of European aid. He described the island as “a laboratory of innovation, a battleground against water scarcity, and a bridge between Europe and the Eastern Mediterranean.” He highlighted the establishment of the EIB office in Nicosia as a milestone achievement, enhancing collaboration between European institutions, local authorities, and the private sector.
Impact on the Cypriot Economy
“Our presence in Cyprus is not symbolic,” Kakouris explained. “It has a substantial impact on the economy, supports energy and water infrastructure projects, and provides better access to financing for small and medium-sized enterprises through Cypriot banks.” This commitment is expected to bolster economic growth and sustainability across various sectors.
Addressing Water Security in Cyprus
Kakouris expressed particular concern over water security, describing it as a fundamental resource of life. He noted, “In Cyprus, every household learns early on that water is precious and vulnerable.” To combat water scarcity, the EIB worked closely with the European Commission to develop a Water Resilience Strategy, complemented by the EIB Group’s €15 billion Water Resilience Programme, which aims to mobilise up to €40 billion in investments over the next three years.
A Comprehensive Approach to Water Management
While acknowledging the importance of desalination and irrigation projects, Kakouris stressed that these efforts must be part of a broader, long-term strategy. “We need a comprehensive strategy, including smart infrastructure, water recycling, and restoration of aging networks to reduce losses and leaks,” he added, highlighting the necessity for sustainable practices.
Strengthening Regional Cooperation
In discussing regional dynamics, Kakouris underscored the significance of trust-based partnerships with governments and institutions across the Eastern Mediterranean and Southern Europe. He remarked, “Through joint initiatives, we have promoted strategic investments in green energy, the circular economy, infrastructure resilience, and digital transformation.” Such collaborations are essential for fostering innovation and sustainability in the region.
Collaboration with the European Commission
The EIB has also deepened its partnership with the European Commission to align its initiatives with EU policies, such as the Green Deal and InvestEU. This expansion of cooperation aims to focus on employment and social cohesion, ensuring that the benefits of investment are widely shared among citizens.
Future Prospects for the Great Sea Interconnector
Turning to the Great Sea Interconnector, which aims to link the power grids of Cyprus and Greece, Kakouris asserted that the EIB stands ready to support the project pending commitment from both governments to an integrated strategy. “The Bank has not yet received an official funding request, but any such proposal will be evaluated based on technical, economic, and environmental criteria,” he explained.
Digital Transformation at the EIB
Kakouris also highlighted the EIB’s efforts in digital transformation, which he believes have made the institution more transparent, efficient, and accessible to governments and businesses. This shift is expected to enhance the bank’s responsiveness to emerging challenges and opportunities.
Looking Ahead
As Kakouris prepares to conclude his term, he reflected on his legacy of promoting sustainable investments and innovation. “My experience has shown that every challenge is also an opportunity,” he concluded, expressing hope that this belief will guide his future endeavours. His tenure has not only marked a significant period for the EIB but has also positioned Cyprus as a vital player in Europe’s strategic landscape.
