Cyprus’ accession to the Schengen area has now become a political decision for the Council of the European Union and its member states, following a positive assessment of the country’s technical readiness.
Panikos Pourgourides, Head of the European Commission Representation in Cyprus, told Politis that substantial progress has been made, while stressing that the final decision on when and how Cyprus joins Schengen rests with the EU Council.
“Substantial progress has been made. In July, the European Commission adopted the Schengen report for Cyprus, which concludes with a positive assessment of the country’s level of technical readiness,” Pourgourides said in the second part of an interview with Politis.
The report was subsequently forwarded to the European Parliament and the Council, and was presented to the Council in September for discussion with member states.
Final decision rests with the Council
Pourgourides said the European Commission will continue supporting Cyprus as it works to meet the necessary Schengen requirements and standards, while taking into account the country’s particular circumstances.
“The decision on when and how Cyprus will join the Schengen area belongs to the Council of the EU,” he said.
He added that Cyprus’ full accession would strengthen the common framework of rules, standards and responsibilities governing Schengen cooperation.
Pourgourides also stressed the broader significance of Cyprus’ place within the European Union.
“For Cyprus, Europe is not something distant. Nor is it something that concerns only Brussels. It is part of our daily lives, our security, our economy and our future,” he said.
At a time of major change and uncertainty, he argued, Cyprus belongs at the core of a strong and united Europe.
He added that the responsibility is to bring Europe closer to citizens by translating European policies into tangible improvements in everyday life and creating more opportunities for the future.
Competitiveness at heart of EU economic strategy
Turning to the European economy, Pourgourides said strengthening competitiveness has become a top priority for Europe, following the message delivered by the Commission President in her State of the Union address.
Europe, he said, has a strong industrial base, a highly skilled workforce and a single market of 450 million consumers.
However, these advantages need to be used more effectively.
Pourgourides identified four key priorities: reducing energy costs, mobilising investment, strengthening innovation and removing barriers that restrict the operation of the single market.
Europe is investing in clean and affordable energy, electricity grids and interconnections to reduce dependence on imported fuels.
At the same time, through the Savings and Investments Union, the EU aims to improve access to financing for European businesses, particularly small and medium-sized enterprises.
Pourgourides also pointed to the importance of reducing bureaucracy, accelerating licensing procedures and investing in new technologies and workers’ skills.
What greater competitiveness means for Cyprus
For Cyprus, reducing energy costs, strengthening connectivity and improving businesses’ access to the single market are particularly important.
Pourgourides stressed, however, that competitiveness should not be viewed as an end in itself.
Rather, it should serve as a means of creating quality jobs, strengthening economic security and safeguarding prosperity, while maintaining the European social model.
Single market reform targeted for 2027
Another priority for the European Commission is the completion of reforms to the single market by the end of 2027.
“For a small and island economy such as Cyprus, completing the single market means more opportunities for businesses, greater access to financing and more competitive prices for consumers,” Pourgourides said.
The objective is for a Cypriot company to be able to operate throughout the EU without facing 27 different administrative environments.
Businesses should be able to raise capital more easily, provide services across borders and expand within the European market without unnecessary administrative costs.
Pourgourides also referred to “territorial supply constraints”, practices that make it more difficult for businesses to source products from other EU countries on more competitive terms.
Addressing these restrictions could benefit both Cypriot businesses and consumers, he said.
Cyprus also needs domestic reforms
Progress at European level must be complemented by reforms within Cyprus.
Pourgourides said the Commission has identified the need for further simplification of licensing procedures, reductions in administrative burdens and stronger competition in certain sectors of the Cypriot economy.
Particular importance is also attached to addressing Cyprus’ energy isolation, developing its electricity infrastructure and improving connectivity while recognising the particular challenges faced by island regions.
EU Islands Strategy could benefit Cyprus
Pourgourides also highlighted the EU’s first Strategy for Islands, alongside the Strategy for Coastal Communities presented in Paphos during Cyprus’ Presidency of the Council of the EU.
The Islands Strategy could help Cyprus address several of the challenges associated with its geography.
In the energy sector specifically, he said that despite progress in renewable energy, significant difficulties remain in connecting new renewable projects to the grid.
Further investment is also required in electricity networks and energy storage.
“The completion of the single market by the end of 2027 is therefore an important European ambition,” Pourgourides said.
“For Cyprus, the objective is to turn this effort into tangible benefits: more investment, stronger businesses, new jobs and better choices for citizens.”
