Israeli defence firms seek Cyprus base to tap EU Safe financing programme

During a one-day working visit to Nicosia, President Isaac Herzog and President Nikos Christodoulides discussed expanding defence collaboration, including Israeli defence firms establishing a foothold in Cyprus to benefit from the EU's Safe financing programme, which can provide up to €1.18 billion. Cyprus, whose investment plan was approved by the European Investment Bank, is considering new purchases such as Merkava battle tanks as alternatives to Greece's aging Leopard units, alongside Barak MX air-defence systems and advanced attack helicopters from Israel.

Both leaders agreed to maintain contact on specific armament choices. Their talks also addressed the near-finalisation of an agreement on the Aphrodite gas field, progress on the Great Sea Interconnector, and efforts to boost tourism, noting more than 200 weekly flights between the countries. Herzog expressed personal affection for Cyprus and voiced a wish for a future meeting with the Lebanese president to foster regional peace. Additional topics included Israeli investors' property activity in northern Cyprus and a lingering double-taxation issue dating back to 2011.