Deputy Minister to the President Irene Piki has said that in the current geopolitical climate, countries like Cyprus and Italy can function as bridges of stability and economic interconnection between Europe, the Middle East and North Africa.
Piki was speaking at the Italy–Cyprus Round Table with the business community held at the Limassol Chamber of Commerce and Industry on 27 May.
Noting that there is a clear common understanding between the two countries on the major challenges and opportunities shaping the future of Europe and the Mediterranean, Piki recalled that the leaders of the two countries, during the recent visit of the President of the Republic to Rome, have proceeded with the preparation of a joint Cyprus–Italy Action Plan which is of 'particular importance'.
As two member states of the European Union with a strong Mediterranean and extroverted orientation, Cyprus and Italy share the need for a more competitive, more resilient and better connected Europe, she said.
Economic cooperation
Referring to the economic cooperation between Cyprus and Italy, Piki said that it there is a dynamic and added that the total bilateral trade in goods and services exceeded €1.5 billion in 2025.
"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 stressed.
One of the most important areas of cooperation, she said, is the energy sector, "where Italy is a strategic partner for Cyprus, mainly through the activities of ENI and in particular the ENI-Total consortium in Block 6 of the Cyprus Exclusive Economic Zone".
Piki said that in this context, the very recent developments surrounding the "Kronos" gas field are of particular importance and recalled that last week, the Council of Ministers approved the field's Development and Production Plan, a decision that marks an important next step towards the commercial exploitation of Cypriot natural gas.
"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," she stressed.
The Deputy Minister said that new regional interconnection initiatives create significant opportunities for economic cooperation in the region. She referred to the BlueMed digital cable system, with the participation of Italian Sparkle and its connection to Cyprus through Cyta, saying that it constitutes an important development for the strategic interconnection of the region.
"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," she underlined.
Digital interconnection
Cyprus, Piki noted, is becoming a regional hub for digital interconnection, logistics and business services, creating new opportunities for investment and regional business activity.
The strengthening of European strategic autonomy also creates new opportunities for cooperation in the defence industry, a sector that is gaining increasing importance at the European level, she continued.
"Cyprus is gradually developing a dynamic ecosystem of defence and technological innovation, with increasing participation of Cypriot companies and research institutions in European programs and collaborations with major European industries," Piki added.
She also said that significant cooperation prospects exist in traditionally strong sectors of the Cypriot economy, such as shipping and business services. Piki added that the financial services and technology sectors are gaining momentum.
In recent years, she said, Cyprus has been attracting even more international technology companies, which are using the country as a European base with regional access, contributing approximately 14% to GDP.
Piki recalled that in the first quarter of 2026, Cyprus recorded the highest growth rate in the European Union, 3% of GDP, confirming the stability and competitiveness of its economy in a particularly demanding international environment.
"Cyprus, therefore, combines the institutional stability of the European Union with real operational access to the wider region," she said, noting that in a period of increased geopolitical uncertainty, this is a significant advantage for businesses and investors seeking stability, reliability and strategic perspective.
Referring to today's event, she said that it sends an important message, that Cyprus and Italy invest even more in cooperation, interconnection and the common opportunities created by the new economic and geopolitical reality of the Mediterranean.
(Source: CNA)
