Political deadlock in Cyprus over the Great Sea Interconnector project

The entry of the French investment fund Meridiam into the Great Sea Interconnector (GSI) project, which aims to connect the electrical grids of Cyprus and Greece, has triggered an intense political confrontation between the two major Cypriot parties, DISY and AKEL. While both parties officially recognize the strategic importance of the project, they are trading accusations over past energy policies, the project's financial viability, and the government's handling of the negotiations. The disagreement centers on whether the project, which is supported by an EU grant of 657 million euros, provides genuine benefits to consumers or creates risks of dependency.

Government officials, supported by Greek Prime Minister Kyriakos Mitsotakis, emphasize that the project is essential for ending Cyprus's energy isolation. However, the Nicosia administration remains cautious, awaiting a report from the European Investment Bank by November to determine the project's precise impact on consumer electricity costs. A decision regarding Cyprus's financial participation—potentially involving 125 million euros—will follow this assessment. Meanwhile, the parties continue to clash, with DISY accusing the government of indecision and AKEL criticizing the handling of the energy sector during previous administrations.