European Union

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Written by Eszter Balázs.

INTRODUCTION

The country takes over from Denmark and will hand the baton on to Ireland. Cyprus is the last member of the presidency trio with Poland and Denmark.

State and government

The Republic of Cyprus is a presidential democracy. The president is the head of state and the head of government; there is no prime minister. This full presidential system is unique among the EU Member States.

According to the Constitution, executive power is exercised jointly by a Greek Cypriot President and a Turkish Cypriot Vice-President of the Republic, through a Council of Ministers appointed by them (seven and three ministers, respectively).

In 1963, the Turkish Cypriot Vice-President and the three Turkish Cypriot ministers withdrew from government, and since then the government has been functioning by necessity only with Greek Cypriots in all ministries, the number of which was subsequently raised to 11. Moreover, the President of the Republic, according to the provisions of the relevant national legislation, has appointed five Deputy Ministers. The post of Vice-President remains vacant.

The post of Deputy Minister for European Affairs has been created especially for the Presidency. It will cease after Cyprus’s term concludes.

The President convenes and sets the agenda of the Council of Ministers. In foreign affairs, defence and security, the President has veto powers over both the legislative branch and the Council of Ministers.

The current President of the Republic is Nikos Christodoulides, in office since 1 March 2023, following presidential elections in February 2023. His term of office, as is also that of the Council of Ministers, is five years, with the next presidential elections scheduled for February 2028. President Christodoulides is independent, supported by the nationalist-centrist Democratic Party (DIKO – S&D), the social-democratic Movement for Social Democracy – Citizes’ Alliance (EDEK – S&D), and the centrist Democratic Alignment (DIPA – Renew).

Read the complete briefing on ‘Priority dossiers under the Cyprus EU Council Presidency‘ in the Think Tank pages of the European Parliament.

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What are the challenges and issues that the European Union will have to take on in 2026? For ten years now, the European Parliamentary Research Service (EPRS) has asked its policy analysts to identify ten issues to watch in the year to come. While not exhaustive, the annual outlook produced by the Members’ Research Service seeks to explore some major political debates as well as put the spotlight on issues that are not so well known. Over a challenging and defining decade, the series has tackled themes across the European Parliament’s various fields of competence, from citizens’ policies and structural policies to the economy, digital and climate issues, to budget and international affairs.

Such periodic analysis enables us to better understand today’s opportunities and challenges. When reflecting on issues that have affected the European Union in the past decade, dramatic changes immediately come to mind: the COVID-19 pandemic, the war on Ukraine, and the shift in global power balances. But this annual exercise has also covered long-standing, recurrent issues: addressing climate change, shaping the long-term budget for Europe, monitoring the Union’s weight in global trade, and analysing the changing dynamics of the transatlantic relationship.

This tenth edition comes at a highly turbulent time in geopolitics. The balance of power in the world is shifting, and the rules-based international order now faces greater and more frequent challenges than ever before. The selection of issues for 2026 reflects this heightened focus on external policies. The publication addresses three directly affecting the EU: Ukraine’s integration into the EU, European defence capability gaps, and EU-China relations. These issues interact with other trends and developments with geopolitical consequences, such as the impact on the web of artificial intelligence (AI), the potential of Europe’s startup companies, the tougher stances on irregular migration being taken around the world, including in Europe, and challenges on climate policy and ocean protection – all covered below. All these issues, as well as the ‘normal business’ that is not highlighted in this paper but is the European Union’s daily work in delivering for its citizens, require financial means and governance. So this paper also covers the discussions on shaping Europe’s long-term budget, or multiannual financial framework, for the coming years, as well as lessons drawn from implementing the post-COVID-19 Recovery and Resilience Facility.

EPRS provides independent, objective and authoritative information to Members of the European Parliament. As with all EPRS publications, this paper is based on research, robust facts and figures, and informed analysis, with the aim of providing Members with the elements they need to do their work. Readers will find links to the previous editions of this publication listed under the ‘Further reading’ section. Analysis on countless other topics and issues requiring closer, more regular monitoring can be found in the thousands of publications that EPRS has issued over the years, enriching Parliament’s knowledge environment. We hope that this tenth edition of ‘Ten issues to watch’ will provide you with material for reflection as we enter 2026.

Read the complete in-depth analysis on ‘Ten issues to watch in 2026‘ in the Think Tank pages of the European Parliament.

© EPRS 2026

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