NICOSIA, Cyprus — The Council of Ministers approved the 2026 state budget Monday afternoon, with Finance Minister Makis Keravnos describing it as balanced and totaling €10.7 billion.
Keravnos said public debt is projected to decline to 52.9% of GDP in 2026. He also confirmed that the budget accounts for a potential agreement on the Cost of Living Allowance (COLA).
The budget will be formally presented to Parliament on Oct. 2.
Keravnos also warned of economic risks if funding is allocated to the proposed Cyprus-Greece electricity interconnection project. Responding to questions, he cited studies suggesting the project is not financially viable and reiterated previous statements that no one knows the true cost.
When asked about international agreements and signed memoranda, Keravnos said he was speaking only to what he knows and clarified that he has not signed any memorandum himself.