The digital transition has evolved into one of the most decisive factors shaping economic competitiveness and international cooperation in the Euro-Mediterranean region.
From the development of technological infrastructure to the formation of new innovation models, countries in the region are repositioning themselves on a map where knowledge, data, and speed of adaptation define their investment footprint. In this context, linking digital policy with entrepreneurship and investment is becoming increasingly critical, creating new prospects for cross-border cooperation and growth.
At EUROMED DAYS 2026, Dr. Nikodemos Damianou, Deputy Minister of Research, Innovation and Digital Policy, delivered a keynote address on the role of digital technology in shaping new economic partnerships.
He noted that the global economy and geopolitical environment are undergoing rapid transformation, with digital capabilities now constituting a key factor of economic power, resilience, and strategic influence. As he explained, technologies such as artificial intelligence, cloud infrastructure, advanced computing power, digital platforms, subsea cable systems, and satellite technologies are emerging as the most important strategic assets of the new digital era.
At the same time, he stressed that Europe remains highly dependent on suppliers outside the European Union for critical digital technologies, making it necessary to strengthen European technological sovereignty. Referring to initiatives by the European Commission, he highlighted that the new package on European Technological Sovereignty aims to reduce these dependencies and build strong European capabilities in areas such as semiconductors, cloud computing, artificial intelligence, software, and energy infrastructure.
Dr. Damianou also emphasized that technological sovereignty does not imply isolation, but rather a combination of autonomy and international partnerships. As he noted, the Mediterranean is once again emerging as a strategic connectivity hub, this time through its digital dimension, linking markets of over one billion people and providing access to some of the world’s fastest-growing economies.
Within this framework, he pointed out that Cyprus can play a meaningful role in strengthening digital connectivity in the region through secure telecommunications infrastructure, subsea cables, resilient networks, and collaborations in cybersecurity, digital skills, e-government services, and interoperability.
He made particular reference to Cyprus as the easternmost country of the European Union, describing it as a reliable digital gateway between Europe, the Middle East, and Africa. As he noted, the country offers a stable environment fully aligned with the EU acquis, where innovative technologies can be developed, tested, and scaled both in the European market and in the emerging markets of the wider region.
Referring to the performance of the Cypriot economy, he underlined that Cyprus recorded a growth rate of 3% in the first quarter of 2026, the highest in the European Union, while in 2024 it attracted €8.5 billion in foreign direct investment, marking a 60% increase compared to the previous year. He also noted that the information and communications technology sector now contributes 15–16% of GDP, hosting more than 800 technology companies active in sectors such as fintech, gaming, software, healthtech, blockchain, and artificial intelligence.
Concluding, the Deputy Minister reiterated the central message of the Cypriot Presidency of the Council of the European Union, “An Autonomous Union, Open to the World,” stressing that Europe’s competitiveness will depend on outward-looking policies, its resilience on partnerships, and its global role on its ability to connect people, markets, technology, and investments.
EUROMED DAYS – Connecting Regions, Empowering Growth: Mediterranean-Europe Investment Partnerships for a Resilient Future Forum was organized by Invest Cyprus and the ANIMA Investment Network.
