Cyprus defense ministry unveils 2027 budget with focus on domestic industry

On Friday, November 13, 2026, Cypriot Defence Minister Vasilis Palmas presented the Ministry’s 2027 budget to the House Finance Committee. The proposed budget totals 894.7 million euros, marking a significant increase of 266.6 million euros, or approximately 42.5 percent, compared to the 628 million euros allocated in 2026. A primary focus of this funding is the advancement of the domestic defence industry, which the ministry aims to leverage for economic growth and technological enhancements of the National Guard.

Key allocations within the budget include 430.15 million euros specifically earmarked for defensive shielding. Additionally, 247.82 million euros are directed toward the maintenance and operation of the National Guard, while approximately 203 million euros are allocated to the Cyprus Army. Ministry officials, including Deputy Director General Stelios Kountouris, noted that total defence spending, supported by the European SAFE mechanism, is expected to reach 2.2 percent of GDP in 2027 and 2.11 percent in 2028. The defensive shielding portion alone is projected to rise from 0.73 percent of GDP in 2026 to 1.06 percent in 2027. The ministry maintains its commitment to safeguarding the territorial integrity and sovereign rights of the Republic of Cyprus through these strategic resource allocations.