Cyprus is not merely a recipient of aid but a strategic partner that can shape Europe's future, Kyriakos Kakouris, Vice-President of the European Investment Bank (EIB), told the Cyprus News Agency (CNA) in a wide-ranging interview.
Kakouris was speaking ahead of his term as Vice-President coming to an end.
For Kakouris, Cyprus is a laboratory of innovation, a battleground against water scarcity, and a bridge between Europe and the Eastern Mediterranean. The EIB Vice-President speaks after more than 20 years with the Group about his overall experience, which he describes as “extremely constructive”.
Kakouris was the first Cypriot Vice-President of the EIB; with his long tenure on the Bank's Board of Directors—since Cyprus' accession to the EU—he leaves behind a legacy that concerns not only Cyprus but all of Europe, one based on cooperation, innovation, and resilience. “My term as Vice-President was one of the most productive and demanding periods of my professional career. Europe faces significant challenges—energy crisis, climate change, social and income inequalities, geopolitical uncertainties—and our role as Europe's financial arm must meet the expectations of its citizens. I believe we are achieving this,” he emphasised. From water as a "top priority" to the establishment of the EIB office in Nicosia, from digital transformation to energy security, Kakouris underscores that Cyprus is not merely a recipient of aid but a strategic partner that can shape Europe's future.
Speaking about the establishment of the EIB office in Nicosia during his tenure as Vice-President, Kakouris said: “The establishment of the EIB office in Nicosia was a personal milestone for me. Our presence in Cyprus is not symbolic; it has a substantial impact on the local economy, strengthens connections with European institutions, and contributes to deepening relations with the Eastern Mediterranean.” Asked what this mean in practice, he replied that “With the creation of this new office, we are accelerating investments in energy infrastructure, water networks, and restarting support for small and medium-sized enterprises through Cypriot banks. Being closer to both our projects and people allows us to better understand the country's needs. Local stakeholders now know there is someone they can discuss ideas with, be heard by, engage with, and receive more effective support from”. He added, “Our cooperation with local authorities, businesses, and European institutions has been strengthened and will facilitate collaboration on strategic priorities and funding opportunities”.
Kakouris speaks about water with an urgent tone, as a Cypriot who knows firsthand the local conditions. “If I had to choose, I would say I feel particular pride in elevating the water sector as a top priority. Water is the most fundamental resource of life. In Cyprus, every household learns early on that water is precious and vulnerable. It irrigates our fields, powers our industry, supports public health and peace,” he said. However, pride does not mean satisfaction. “The reliability of water is threatened by climate change and increasing demand. Over the past two years, we have worked intensively with the European Commission, and this year the Water Resilience Strategy was announced, which we complemented with the EIB Group's Water Resilience Program.”
As whether desalination and irrigation projects are sufficient, his response is rather emphatic: “Desalination and irrigation projects are, of course, critical tools. That is why the Cypriot Government rightly approved the expansion of existing desalination plants and plans to build new ones for the period 2025-2030. But this alone is not enough. We need a comprehensive strategy: from hydro-logical cycle management, smart infrastructure, storage and recycling of treated water, to the restoration of water networks to reduce losses and leaks.” He concluded with a warning and a promise: “For countries like Cyprus, water resilience is not a luxury but a necessary element of security and economic sustainability. At the EIB, we have already included the water sector in our priorities and announced the new Water Resilience Program, with €15 billion in funding from the EIB Group over the next three years, with the potential to mobilise up to €40 billion in total investments.”
However, none of these priorities can be achieved by an institution alone. “That is why we work closely with the European Commission, other international financial institutions, businesses, and local authorities. Every project we support in the water sector is not just a financial investment; it is also a promise: to the Cypriot farmer who worries about rain, to the child learning to swim in a clean river or sea, and to the new generation that will judge us by the water they inherit.”
Regarding the EIB and the Eastern Mediterranean, Kakouris does not hide his satisfaction when talking about cooperation with Cyprus and the wider region: “My cooperation with the Member States and the wider region has been one of the most creative parts of my tenure at the EIB. From the beginning, I made it a priority to deepen trust-based relationships with governments, institutions, and local authorities, aiming to develop solutions that respond to the real needs of citizens.” When asked about the importance of cooperation with the Eastern Mediterranean, he replied: “Cooperation with the countries of Southern Europe and the Eastern Mediterranean has been decisive. Through joint initiatives, we have promoted strategic investments in areas such as green energy, the circular economy, infrastructure resilience, and digital transformation.”
The cooperation does not stop there, as the Vice-President explains how the EIB strengthens its ties with the EU executive and other institutions: “We have worked closely with the European Commission to align our priorities with European policies, from the Green Deal to the InvestEU investment programs, ensuring that the EIB's interventions maximize their impact at the European level.” He concluded the discussion on cooperation by stating he is “particularly satisfied that we have intensified our cooperation with the Council of Europe Development Bank (CEB), focusing on the social dimension of investments, with a priority on employment, social cohesion, and support for the most vulnerable groups”.
Crises do not wait, and Kakouris speaks about the Climate Bank Roadmap and new priorities, defense, and security: “The second phase of the Climate Bank Roadmap marks a new chapter for the EIB Group. We focus on three main pillars: enhancing competitiveness, doubling funding for climate change adaptation, and radically simplifying our processes.” When asked about the new priorities in security and defense and whether the Bank can meet the Union's new policy priorities, he says that “the integration of new priorities in the areas of security and defense reflects today's geopolitical environment and, in my opinion, is a natural evolution. Investments in security and defense are fully aligned and are a fundamental prerequisite for achieving all our other strategic goals: sustainability, cohesion, competitiveness, and resilience”.
When the discussion turned to the Great Sea Interconnector (GSI), the Vice-President was clear: “The EIB has made it clear from the beginning that it is ready to support strategic projects that are supported by both countries [Cyprus and Greece] and where governments are committed to developing projects that are compatible and integrated into the energy strategies of the two countries. It remains committed to supporting initiatives that enhance Europe's energy security and accelerate the path to decarbonisation, and it closely monitors developments and is in continuous contact with the two governments and the European Commission to evaluate the next steps.” He added that “the Bank has not yet received an official funding request; any request will be examined based on its own characteristics, in accordance with the Bank's policies, priorities, and technical, economic, and environmental criteria”.
Seeing digital transformation as a necessity, Kakouris talks about how, through this transformation, the EIB becomes more accessible to businesses and governments: “Over the past two years, the EIB has significantly accelerated its digital transformation, aiming to become more effective, transparent, and accessible to both businesses and governments. The added value for businesses and governments is already visible: digitization allows for faster evaluation of applications, better project management, and easier access to information.” Responding to whether new tools like the Green Checker are sufficient, he emphasised that "tools like the Green Checker have facilitated the identification of projects that can be considered sustainable and aligned with environmental requirements, offering a first, quick guide to funding opportunities and sustainability criteria.” Overall, “digital transformation enhances the transparency, efficiency, and accessibility of the EIB, while supporting its strategy for sustainable financing and adaptation to the needs of different categories of investors”.
When asked what he would like citizens to remember from his term, Kakouris answered: “I would like citizens to remember my term as a period during which the Bank strengthened its support for sustainable investments, innovation, and the green transition, while maintaining close contact with the needs of businesses, governments, and citizens. My goal was to create added value not only through funding but also through advisory, technical support, and strengthening policies that enhance Europe's resilience. I would advise the next Vice-President to remain open to cooperation and innovation and to rely on the expertise of the EIB Group's staff.”
Regarding the future, the Vice-President appeared optimistic: “Yes, I am optimistic. Despite the major challenges Europe faces—from climate change and energy transition to geopolitical tensions—there are tremendous opportunities for innovation, sustainable development, and strengthening social cohesion. And yes, Europe is bringing real positive changes to the daily lives of its citizens. In the future, I would like to continue supporting projects that bring real development to my country, leveraging my experience from the EIB. I would like to emphasize that my tenure at the EIB has shown me how important it is to see every challenge as an opportunity, and this belief will continue to guide my next steps.”
