From Brussels
The Cypriot government is preparing to examine measures aimed at mitigating the impact of rising energy costs, as escalating attacks on energy infrastructure in the Middle East raise concerns over a new wave of price increases.
According to government sources, no specific package of measures is currently on the table. The approaches under consideration are not expected to be short-term, but rather part of a broader medium-term strategy at both national and European level.
Officials noted that as recently as three days ago, the outlook had been more positive, with lower prices and greater optimism about the trajectory of the crisis. At that stage, the potential closure of the Strait of Hormuz was not seen as an immediate concern.
That assessment has since shifted, with the issue now being discussed at the highest political level and requiring a more comprehensive and structured response.
Cabinet discussion expected on Wednesday
Following the President’s return to Cyprus, consultations with relevant ministers are expected to begin, alongside an ongoing evaluation of possible measures.
No decisions have yet been taken or announced. The issue is set to be brought before the Council of Ministers on Wednesday, where available options will be reviewed and the government’s overall approach is expected to be shaped.
The discussions are taking place against a backdrop of uncertainty over developments in the Middle East and their potential economic impact.
European response under consideration
At European level, the issue is also under active discussion.
Eurogroup President Kyriakos Pierrakakis, speaking ahead of the European Council, pointed to the policy tools developed during the energy crisis following Russia’s invasion of Ukraine as a possible framework.
“The crisis in the Middle East and its consequences have already begun to affect the daily lives of European citizens, in terms of energy costs, the cost of basic goods and their sense of security,” he said.
He identified “uncertainty” as the defining feature of the current situation, stressing that both the duration of the crisis and the level of disruption will determine the scale and nature of the European response.
Focus on both short-term support and long-term resilience
Pierrakakis underlined that managing the crisis and supporting households, businesses and citizens remains essential, but placed equal emphasis on strengthening the long-term foundations of European economies.
He indicated that new energy-related measures are expected to be announced, noting that both the existing policy “toolbox” developed in 2022 and a new set of instruments are being considered.
“There is a sense of urgency,” he said, adding that the duration of any closure of the Strait of Hormuz will be a key variable in shaping the most appropriate response.
All scenarios under review
Asked about the implications of recent attacks on energy infrastructure, including major facilities in Qatar, Pierrakakis described the situation as “deeply concerning”.
He said authorities are examining all possible scenarios, from best-case to worst-case outcomes, with the balance between national and European-level responses depending on how the crisis evolves.
With information from AMNA