Germany’s Ambassador to Cyprus, Dr. Hans-Peter Jugel, shares his views on the relationship between the two EU partners and how business cooperation could be expanded into the sectors of technology, space, fintech and more.
In a recent interview with GOLD magazine, His Excellency also talks about his country's stance on the Cyprus Problem and, having started his appointment on the island this summer, shares his thoughts on life in Cyprus so far.
Bilateral ties between Germany and Cyprus have existed for over half a century and, of course, they have grown since the island joined the EU in 2004. What are the key areas in which economic ties could be further expanded?
Germany and Cyprus enjoy a longstanding relationship based on mutual respect, a cultural affinity, a close EU partnership, shared European values and interests and the EU’s Common Foreign and Security Policy.
While it is true that Cyprus is a much smaller trade partner for Germany than other EU countries, the strength of the partnership lies in its quality – driven by innovation, adaptability and a growing collaboration in strategically important areas. I see particular opportunities in the fields of information technology, fintech, blockchain applications and digital services, where Cypriot companies are already making a name for themselves.
In addition, Cyprus has significant potential in dual-use and defence-related technologies, where we are witnessing a gradual increase in interest on both sides. The maritime and shipping sectors, already well developed, remain vital for both economies.
German stakeholders also recognise the potential of Cyprus in discount retail and logistics, areas that have shown strong expansion in recent years.
Renewable energies have significant potential for close cooperation between Germany and Cyprus. As global greenhouse gas emissions continue to rise, new green energy and efficiency projects must be initiated and implemented, technologies must be enhanced and grids extended. Germany’s GreenTech sector provides technologies and know-how for climate-friendly energy solutions, whereas Cyprus has, for example, significant potential to harness green energy at sea. Offshore wind energy and ocean energy can play an important role as renewable energy sources. We should therefore intensify our efforts to explore joint business opportunities in the renewables sector.
Let’s not forget that tourism is a vital pillar of the economic ties between Germany and Cyprus. Germany is one of the main source countries for visitors to the island. Strengthening this sector further and fostering long-term mutual benefits could be achieved through enhanced connectivity and collaboration on digital tourism solutions.
As Cyprus prepares for its Presidency of the Council of the European Union in the first half of 2026, there will be new opportunities to deepen cooperation, not only bilaterally but also in shaping European policy frameworks that benefit both countries. Germany stands ready to work closely with Cyprus in identifying and developing these opportunities.
How would you assess business ties between the two countries? Have many German companies relocated to Cyprus?
Business ties between Germany and Cyprus can be characterised as solid but not yet at the level of their full potential. German companies are present in Cyprus but their numbers remain limited compared with other EU markets. The German economy is highly diversified and competitive and companies tend to prioritise larger markets. For that reason, Cyprus has yet to attract significant flows of German capital investment on a large scale.
That said, the picture is not static. We have seen German companies establishing operations in Cyprus in areas such as ship management, logistics, professional services and specialised retail. These enterprises report positively on the Cypriot business environment. They underline the advantages of an internationally oriented workforce, an efficient legal framework aligned with EU standards and a location that connects Europe with the wider Eastern Mediterranean.
The local banking sector has undergone significant reform in recent years, leading to greater stability and transparency, which is also valued by international investors.
Electronic trading platforms that operate from Cyprus and enable trading in stocks, exchange-traded funds and contracts for difference have gained great popularity among Germans of all ages. At the same time, many German business leaders point out the importance of continued efforts in ensuring predictability, strengthening regulatory frameworks and fostering innovation ecosystems that can sustain long-term growth.
Significant contributions are being made by Germany to support certain sectors of the Cypriot economy. Can you elaborate on some of these recent investments and their importance?
Germany’s involvement in Cyprus is best understood not only regarding traditional investment flows but also in terms of knowledge transfer, institutional partnerships and sector-specific cooperation. A very visible example is the engagement in the Eratosthenes Centre of Excellence, where German institutions play a key role in advancing Cyprus’ ambitions in Earth observation, satellite services, and space applications. This partnership highlights Germany’s readiness to support Cypriot capacity building in high-tech areas.
Beyond the space sector, German contributions are visible in shipping services, ship management and logistics, as well as in discount retail chains where German business models have been successfully transferred to the Cypriot market.
There is also a growing awareness of Cypriot capabilities in defence and dual-use technologies. A recent example, without naming specific companies, is the investment of a Cypriot enterprise in a major German manufacturer of military optics. This is a clear signal that cooperation is not a one-way process and that Cypriot capital and know-how can play a meaningful role in Germany as well.
How has the partnership between Germany and Cyprus, particularly through the Eratosthenes Centre of Excellence, contributed to the space economy in Cyprus, and how does it support the commercialisation of research into space-related innovations? What challenges does this partnership face,and how does the Eratosthenes Centre help overcome them?
The Eratosthenes Centre of Excellence is a leading example of successful German-Cypriot collaboration in space technology. German institutions like the German Aerospace Centre and the Leibniz Institute for Tropospheric Research are actively involved, supporting the Centre’s work in Earth observation, remote sensing and satellite applications. This collaboration not only aids Cypriot researchers by providing technical expertise and access to European research networks but also fosters a new ecosystem of startups in space technologies. The Eratosthenes Centre of Excellence’s Space Business Incubation Centre acts as an incubator for early-stage Cypriot entrepreneurs, offering mentoring, proof-of-concept development and connections to investors, including German venture capital. The challenges faced by the partnership are common to emerging high-tech sectors, including securing sustainable funding, retaining talent and translating research into commercial applications. However, German partners contribute valuable experience from Europe’s established space sector to address these issues.
Additionally, the Centre’s location in Cyprus, with its ideal climate for Earth observation, makes it a regional hub for space research, directly supporting Cyprus’ path to full European Space Agency membership, which Germany actively backs.
Shipping has long been a major component of the Germany-Cyprus relationship and the sector has been affected recently by uncertainty over tariffs and issues of security in the broader region. What steps are being taken to bolster the sector from oncoming headwinds and how is the relationship between the two countries evolving in this area?
Shipping has historically been one of the strongest links between Germany and Cyprus. German shipowners and ship management companies have long maintained a significant presence in Limassol and the Cypriot flag remains an important instrument for international shipping activities. As you have noted, the sector is not without challenges: tariff uncertainty, global supply chain volatility and security concerns in the Eastern Mediterranean have all had an impact. To address these challenges, both Germany and Cyprus are working within the EU and through the International Maritime Organization to ensure fair competition, security of navigation and sustainability in shipping.
The EU’s new environmental requirements, particularly on decarbonisation and digitalisation, represent challenges but also opportunities for joint innovation. Together, German technology providers and Cypriot ship managers can pioneer solutions in green shipping, port management and maritime security.
The strategic location of Cyprus means that cooperation in maritime security, especially in view of regional instability, is becoming more important. Germany values Cyprus as a partner in strengthening maritime situational awareness and we see the potential for closer cooperation in naval technology and dual-use applications. In this respect, Cyprus’ upcoming EU Council Presidency offers a timely opportunity to shape European maritime policy in a way that takes account of both our countries’ interests.
Germany has been an avid supporter of the peace process in Cyprus, helping with initiatives to bring the communities closer. What is Germany’s view on solving the Cyprus problem?
As a friend of Cyprus and its people, Germany is pleased to accompany and support the United Nations’ efforts to resume the negotiation process to resolve the Cyprus issue. In the context of our own history as a country that has experienced division, we respectfully accompany and support the process of reunification in Cyprus, acknowledging the unique historical context of that nation.
UN Security Council resolutions offer a path forward, suggesting a “bicommunal, bizonal federation with political equality.” We encourage all parties to engage constructively, avoid unilateral actions and create conditions conducive to the resumption of formal negotiations.
A settlement remains in the interest of Cyprus, the wider region and the EU as a whole. At the same time, we consider it essential to promote encounters and confidence-building measures between the people of the two communities. From Germany’s perspective, bicommunal projects such as Imagine and the work of the Committee on Missing Persons are particularly valuable.
Economic cooperation, educational exchanges and joint projects in innovation and technology can help build trust between communities. We see this as complementary to the political process and as a contribution to preparing the ground for a sustainable settlement.
You are still new to Cyprus after taking up your post as Ambassador in August. How have you found life on the island so far and how does it compare to other countries in which you have lived and worked?
Yes, my wife and I have only been in Cyprus for a few weeks. As we flew over the island on our approach to Larnaca, seeing the island’s beauty from above and the Mediterranean in all its beautiful blue colours, we both wondered why we hadn’t been here much sooner and more often. But that’s how it is in diplomatic life: a global assignment initially takes us far away, until the desired position is within reach: in my case, from Tallinn, Guangzhou, Moscow, Washington, Geneva and Tehran to Nicosia.
It was clear from the start: Cyprus is so much more than a small island. Rich in history and culture, a link described by Goethe in the West-Eastern Diwan, in Europe, in Asia, in the Middle East and in the great Eastern Mediterranean. Not to mention the food! And coming from Würzburg, the capital of German Franconian wine, we have already learnt about the wonderful Cypriot wine region with its splendid wines. And best of all: the many friendly people who have made the start of our time in Cyprus easier than almost anywhere else. “Welcome to Cyprus!” This warm welcome has accompanied us every day since our arrival. We are very much looking forward to deepening German-Cypriot friendship!
Photo by TADOBI
This interview first appeared in the October edition of GOLD magazine. Click here to view it.
