Cyprus Defense Minister presents 2027 budget with focus on local industry

On November 13, 2026, Cypriot Minister of Defense Vassilis Palmas presented the ministry's 2027 budget to the Parliamentary Committee on Finance. The proposed budget totals €894.7 million, representing a significant increase from the €628 million allocated in 2026. Of this amount, €430.15 million is earmarked specifically for defense fortification, while €247.82 million is designated for the maintenance and operation of the National Guard, and approximately €203 million for the Cypriot Army.

A core pillar of the new budget is the prioritization and development of the domestic defense industry. Minister Palmas emphasized that fostering local industry provides a double benefit: it contributes to the national economy and offers the National Guard autonomous access to advanced technological products. The Ministry stated that this strategic shift aims to enhance the country's technological capabilities and ensure territorial integrity.

According to Deputy General Director of the Ministry, Stelios Kountouris, total defense spending, including financing through the European SAFE mechanism, is expected to reach 2.2% of GDP in 2027 and 2.11% in 2028. The allocation for defense fortification specifically is projected to rise from 0.73% of GDP in 2026 to 1.06% in 2027, maintaining a level of approximately 1% in the following year.