EU Presidency

Cyprus’s EU Presidency

“In the Mediterranean, we find the roots of our civilization. And as a Mediterranean island nation at the crossroads of Europe, the Middle East, and Africa, Cyprus understands the importance of building bridges, fostering dialogue, and working toward inclusive European solutions,” said European Council President António Costa as Cyprus formally assumed the rotating Presidency of the Council of the European Union, taking over from Denmark.

Costa emphasized that Cyprus’s geographical position and historical experience give it a distinctive vantage point within the EU at a time marked by geopolitical instability, regional conflicts, and renewed debates about Europe’s global role. As an island state situated at the intersection of three continents, Cyprus is well-positioned to encourage dialogue both within the Union and with its neighboring regions.

A small presidency with outsized ambitions

Despite being one of the EU’s smallest member states, Cyprus has entered its six-month Presidency of the Council of the European Union with an ambitious agenda. At the core of its presidency lies a broad vision of a more autonomous EU, one capable of acting independently when necessary, while remaining firmly committed to multilateralism, international law, and cooperation with global partners. For Nicosia, autonomy is not about isolation, but about strengthening the EU’s capacity to protect its interests, uphold its values, and engage the world from a position of confidence.

Security and defence feature prominently on the agenda. Cyprus has framed European autonomy as inseparable from the Union’s ability to respond to a rapidly evolving threat environment, ranging from Russia’s ongoing war against Ukraine to hybrid attacks, disinformation, and pressure on critical infrastructure. The presidency is expected to support deeper EU defence cooperation, closer EU-NATO coordination, and the implementation of recently agreed initiatives aimed at improving readiness and reducing strategic dependencies.

Maritime security is another priority shaped by Cyprus’s geography. The presidency plans to advance EU efforts to safeguard freedom of navigation, protect sea routes and critical infrastructure, and strengthen cooperation with partners in regions such as the eastern Mediterranean, the Red Sea, and the Gulf, areas vital to European energy and trade flows.

Economic autonomy and competitiveness form another major pillar. Cyprus has emphasized the need to strengthen the Single Market, reduce regulatory burdens, and deepen capital markets to channel investment into innovation, clean technologies, and digital transformation. Energy security, resilient supply chains, and affordable prices are seen as essential conditions for sustaining growth and social cohesion across the Union.

The presidency also places strong emphasis on migration management, economic security, and democratic resilience. Implementing the EU’s migration and asylum framework, countering disinformation and foreign interference, and addressing organised crime and terrorism are presented as interconnected elements of Europe’s internal security. Water resilience and climate adaptation have similarly been elevated as emerging security challenges with direct economic and social implications.

Externally, Cyprus has stressed that European autonomy must go hand in hand with openness. Enlargement, particularly toward Ukraine, Moldova, the Western Balkans, and Türkiye, features prominently, alongside renewed engagement with the EU’s southern neighbourhood and the Gulf. The presidency aims to strengthen partnerships in the Mediterranean and the Middle East, expand trade ties, and reinforce the EU’s role as a leading provider of humanitarian and development assistance.

Finally, social cohesion underpins the presidency’s approach. From affordable housing and poverty reduction to youth policy, education, and mental health, Cyprus has framed autonomy as ultimately dependent on citizens’ trust in the Union and their ability to participate fully in economic and democratic life.

Taken together, these priorities reflect Cyprus’s attempt to translate its strategic location and political experience into a presidency focused on resilience, responsibility, and Europe’s role in a more fragmented world. Cyprus’s presidency also concludes the 18-month Trio Presidency with Poland and Denmark, which has focused on the shared priorities of a secure, competitive, and democratic Europe.

Unresolved domestic challenges

Yet Cyprus’s leadership role in promoting dialogue and stability abroad contrasts with an unresolved challenge at home. The island remains divided more than five decades after the events of 1974, with the northern part controlled by the Turkish Cypriot administration, recognised only by Türkiye. Reunification efforts have long been stalled, but EU institutions continue to regard a comprehensive settlement as a strategic priority.

Cyprus’s EU Council presidency has renewed attention in Brussels on the long-dormant reunification process. EU leaders have reiterated that a comprehensive, fair, and lasting settlement remains an objective, despite frozen relations between Ankara and Nicosia. In support of renewed engagement, the EU last year appointed a special envoy to facilitate dialogue between the two communities.

Türkiye, however, continues to argue that a two-state solution is the most realistic outcome, a position widely seen within the EU as entrenching the status quo rather than resolving the conflict. For many observers, the Cypriot presidency thus embodies a broader paradox - a small and divided state seeking to demonstrate that, even under complex domestic conditions, it can contribute meaningfully to Europe’s strategic direction.

From Ankara’s perspective, the federal/bi-zonal, bi-communal track is not viable because decades of UN-led talks have not delivered a settlement, culminating in the collapse of the Crans-Montana conference in July 2017. Türkiye and the Turkish Cypriot leadership argue that new formal negotiations can only restart if “sovereign equality” and “equal international status” of the Turkish Cypriot side are acknowledged, and they often pair this with calls to end what they describe as the Turkish Cypriots’ international isolation. Recent polling suggests that a majority of Turkish Cypriots currently favour a two-state approach to the Cyprus issue, with 58.9% expressing support for this position, while 41.2% prefer a federal settlement. The data also point to a divided and still fluid public mood, with a significant number of undecided voters and an active pre-election debate shaping how different solution models are perceived within the community.

Cyprus’s EU Council presidency has also begun amid a domestic political controversy triggered by the circulation of online videos alleging high-level corruption. The recordings appear to show senior figures discussing campaign financing, access to political leadership, and the potential misuse of social contributions. The government has rejected the allegations, arguing that the footage was selectively edited and intended to damage the country’s image. Police have launched an investigation following complaints from individuals named in the videos, while President Nikos Christodoulides has publicly denied any wrongdoing and called on anyone with evidence to submit it to the authorities. Opposition parties have demanded greater accountability and transparency, warning that the allegations raise serious ethical and institutional concerns. The episode coincides with an election year in Cyprus, adding to the political pressure as the country assumes its European leadership role.

Berlin’s diplomatic calculus on Cyprus

Among German liberals, the Cypriot presidency’s agenda resonates through its emphasis on competitiveness, regulatory restraint, a strong Single Market, and strategic autonomy that remains anchored in multilateralism and EU–NATO cooperation. These priorities align with themes highlighted in German parliamentary assessments of the presidency, which emphasize economic openness, institutional resilience, and the protection of democratic values as essential prerequisites for a credible and autonomous European Union.

Berlin has signalled a more active role in linking progress on the Cyprus issue with broader EU–Türkiye relations. Chancellor Friedrich Merz has made clear that Germany seeks closer ties between Ankara and the European Union, but only on a step-by-step basis anchored in EU rules and the Copenhagen criteria. In discussions with Cypriot President Nikos Christodoulides, Merz underlined that any meaningful rapprochement with Türkiye remains impossible if Ankara insists on positions outside the established UN and EU framework for resolving the Cyprus problem.

From the German perspective, Cyprus’s EU Council presidency offers a strategic window to advance parallel tracks on EU–Türkiye relations, competitiveness, and the next Multiannual Financial Framework, areas where Berlin expects Nicosia to play a key coordinating role. Cyprus has also sharpened its message toward Ankara in close coordination with Germany. Following talks in Berlin, President Christodoulides stated that Türkiye cannot advance its EU ambitions as long as it insists on a two-state solution for Cyprus, stressing that any settlement must be based on UN Security Council resolutions.

Merz confirmed Germany’s willingness to play an active role in exploring pathways to break the diplomatic deadlock during the Cypriot presidency, while reiterating that closer EU–Türkiye cooperation must remain conditional on respect for established frameworks.