On the 1 of January this year, Cyprus took over the Presidency of the Council of the EU. Cyprus will hold the presidency until 1 of July, when Ireland takes over for its six–month presidency. Lithuania will then take up the presidency in January 2027. Cyprus has taken up the presidency in the midst a difficult time for Europe. With the transatlantic relationship fraying, Russia’s ongoing war in Ukraine and increased scepticism about Europe’s ability to increase competitiveness, Cyprus will have to steer the EU forward in its budgetary preparation, its formulation of foreign policy and in its proposed reforms about competitiveness. In this edition of Just the Facts, we will be looking at the priorities of the Cyprus presidency and what this might mean for the upcoming Irish presidency.
Background
The island of Cyprus was a British colony until 1960, when it gained independence from the UK. Following its independence Cyprus was ruled by a power sharing coalition between Greek Cypriots and Turkish Cypriots, with Greece, Turkey and the UK acting as guarantors. Peace broke down in 1974, and the island was partitioned into the Republic of Cyprus and the Turkish Republic of Cyprus. During Ireland’s presidency of the European Council in 2004, the Republic of Cyprus joined the EU and was formally welcomed into the EU at Áras an Uachtaráin. This year’s presidency marks their second time holding the position.
Priorities
The motto for the current Cypriot presidency is:
“An Autonomous Union. Open to the World.”
The overarching priority for Cyprus during its presidency will be developing European autonomy, with a focus on ensuring Europe is able to act independently and decisively on areas such as defence, security and economic challenges. Another dimension of this will be opening EU trade to the Middle East and India, with Foreign affairs Minister Constantinos Kombos highlighting the need for the EU to build diverse partnerships in a rapidly evolving world.
One key factor that Cyprus will have to grapple with is advancing the negotiations on the Multiannual Financial Framework (MFF). Within its Programme for the Presidency, Cyprus aims to have a well progressed negotiating framework with indicative figures by June 2026. The programme puts several key issues at the heart of MFF negotiations, saying these are imperative to EU autonomy and security going forward. These include a reduction of critical dependencies, enhancing the EU’s ability to safeguard its interests, and ensuring the EU remains competitive in the face of increasing global instability. In comparison to the 2021-2027 MFF, the European Commission’s July 2025 MFF proposals have considerably streamlined budget headings and condensed funding instruments, which will mean a restructuring of how funds are allocated. Member states will be competing to ensure funding for their priorities (such as agriculture, defence, infrastructure) are protected.
Another central component of the Cypriot presidency programme is that of security and defence, which it highlights this as one of the key elements for furthering Europe’s autonomy. The programme seeks to highlight the need for protections against supply chain vulnerabilities, critical infrastructure threats, technology leakage and weapons dependencies. It also cites the need and desire to implement the 2023 Economic Security Strategy to ensure robust defences for the European economy. With regards to physical security, the Cypriot presidency emphasises the need for the EU to have a “360-degree approach” to address a range of threats. This includes ensuring military readiness by 2030, ensuring cyber, maritime and border security, supporting defence initiatives including the EU Defence Industry Strategy and the European Defence Industry Programme, as well as further integration between members on military operations. The programme underlines a need for European autonomy in security in an age where traditional security guarantees are becoming increasingly fragile.
Competitiveness has been at the forefront of discussions and policymaking in Brussels in the current mandate and has been cited as a pillar for European autonomy going forward. Like recent presidencies, Cyprus has made it central to its presidency agenda. The Cypriot presidency will seek to maintain the momentum built by their presidency trio partners (Poland and Denmark) and advance Omnibus proposals to reduce regulatory and administrative burdens, with a special focus on those that affect SMEs. According to the programme, the aim is not to deregulate, but to simplify regulations to produce a more efficient, proportionate streamlined regulatory system. There is also a focus on driving shifts towards green and digital practises, while also revitalising industrial bases throughout Europe. One of the main aspects up for discussion during the Cyprus presidency will be that of the Industrial Accelerator Act, which aims to speed up decarbonised industrial development. Recently it has been broadened to include a “Made in Europe “preference on procurement. This could prove difficult to navigate as it will likely be disadvantageous for smaller members who rely on cheaper, external resources.
EU enlargement has been at the forefront of Brussel’s agenda for the last decade. There are currently nine countries that have applied and officially achieved candidate status. In a recent interview, Cyprus’ Ambassador to the EU, Christina Rafti, stated that EU enlargement presents a powerful strategic tool for the EU. Ambassador Rafti highlighted the need to enforce democratic values on the European continent by working with individual candidate countries to further their accession negotiations. Within Cyprus’ presidency priorities, enlargement is a key aspect. Cyprus has committed to moving forward accession talks with countries in the Western Balkans, as well as with Moldova and Ukraine, while simultaneously pushing for internal reforms that will prepare the EU for enlargement.
Given Cyprus’ geographic location, one of its key priorities will be advancing the EU’s agenda in its southern neighbourhood and the Gulf states. The presidency programme cites a stronger and more strategic relationship with the Southern Neighbourhood as a long-term investment in stability and prosperity. One of the main focuses for Cyprus during its presidency will be in maintaining humanitarian aid to Gaza via the Cyprus Maritime Corridor and ensuring the EU is able to facilitate the distribution of aid. Cyprus is also seeking to advance the Pact for the Mediterranean during its presidency and has committed to supporting ongoing development in the Southern Neighbourhood. This includes enhancing the EU’s capacity for rapid and effective crisis response, specifically in the Eastern Mediterranean. Cyprus also intends to significantly advance the Global Europe Instrument to support the EU’s agenda of promoting sustainable development and enhancing governance in the Southern Neighbourhood
One of the largest files Cyprus will have to contend with during its presidency will be the post 2027 Common Agricultural Policy (CAP). While decisions on CAP funding will not be settled during its presidency, it will have to lay the groundwork for negotiation for the 2028-2034 CAP agreement, as part of the broader MFF negotiations. Given the recent shift from a two-pillar CAP structure to a single funding model, there will be many factors to set out before proper negotiations begin. Due to the change in funding streams and the recent EU-Mercosur deal, the EU is under increased pressure from its agricultural lobby to enhance its supports for farmers. Cyprus will be inheriting the presidency at a time when pre-negotiations on the future of CAP are being formalised. Cyprus has committed to pursuing simplification on aspects of CAP administration for farmers, it has also made a clear commitment to pursuing strengthening measures within the agri-food supply chain. Cyprus also aims to significantly advance the budget negotiations on the core funding aspects during its time as president. The Cyprus presidency will be laying the groundwork on these issues for the negotiations that will follow.
What does this mean for Ireland
For Ireland, the work undertaken during the Cyprus presidency will shape the parameters of what it can hope to achieve during its own presidency. Cyprus’ ambition to advance the MFF and achieve a mature negotiating framework means Ireland will assume the presidency at a pivotal stage of the negotiations. Ireland will look to use its influence over the next six months to ensure that its priorities, such as CAP, the competitiveness agenda, security and defence and international development, among others, are progressed and protected. Ireland will also be watching closely to see how the Cyprus presidency deals with security and defence. Cyprus has committed to security and defence being a central Pillar of their presidency. Given the increasing unpredictability as regards US security guarantees and the EU’s focus on becoming more independent, Ireland will have to progress the security and defence files, while ensuring other priorities do not get crowded out. Ultimately the first six months of 2026 are as important for the Irish presidency as the last six months.
Long story short…
Cyprus is inheriting the presidency at a time when the focus of the EU is on several external crises. In the coming six months Cyprus will have to manage multiple high-profile pre-negotiations on existential EU matters. Issues such as the MFF, security and defence and the future of EU competitiveness will all be teased out during its presidency. The work Cyprus does now will shape how Irelands presidency unfolds.
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