Cyprus government approves 2027 budget and resolves major labor dispute

The Council of Ministers in Cyprus has approved a 2027 state budget of €11.1 billion, reflecting a projected economic growth of 2.9%. The budget anticipates a fiscal surplus rising to 2.8% of GDP and a reduction in public debt to 46.6%. Following a meeting with President Nikos Christodoulides, unions representing 11,000 hourly government employees canceled a planned 24-hour strike that was scheduled for September 17. This decision ensures that public services, school boards, and health organizations will operate as usual, and lifeguard services at beaches will remain fully staffed.

In other developments, the European Central Bank implemented a 0.25 percentage point increase in interest rates as of September 16. Meanwhile, energy authorities are inspecting the LNG terminal in Vasiliko to determine completion timelines, and local authorities are preparing new regulations to manage short-term rentals like Airbnb. Police have also launched an investigation into an unlicensed plasma center in Larnaca. Additionally, maintenance works on the Larnaca-Paralimni highway are scheduled to continue through September 21, causing lane closures.