Cyprus announces new economic relief measures amid regional tensions

On March 26, 2026, President Nikos Christodoulides announced an eight-point relief package totaling over 200 million euros to address the economic fallout of the conflict in the Middle East. Key measures include reducing the VAT on electricity to 5% for all residential consumers from May 1, 2026, to March 31, 2027. Fuel excise taxes will be cut by 8.33 cents per liter from April to June 2026, and the government has canceled the planned green tax on fuels, which would have added 9 cents per liter. A zero VAT rate will be applied to meat, poultry, and fish from April 1 to September 30, 2026. Additionally, the government will provide a 30% subsidy for hotel employee wages in April 2026 and support schemes for airlines and farmers. The President emphasized that these measures are fully costed and aimed at protecting consumers from price gouging. Separate reports regarding Spain mention a 5 billion euro package, which involves reducing VAT on electricity and fuel from 21% to 10% to combat similar regional economic pressures.