Government expands digital services with €212m budget allocation Cyprus is stepping up its drive to modernise public services, digitise government operations and strengthen its technology sector, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said on Monday. The ministry’s €212.2 million programme for 2027 is aimed at building on what he described as the country’s “largest-ever public sector digitisation effort”. Of that amount, €150.2m is being allocated directly to the Deputy Ministry of Research, Innovation and Digital Policy, while a further €62m is being set aside for other government departments. Presenting the ministry’s budget to the House finance committee on Monday, Damianou said the government was building on two years of progress in its largest-ever public sector digitisation programme, with further projects planned to improve public services and support businesses. He thanked committee members for the discussion, adding that there was broad recognition that digital transformation, research and innovation were essential to the growth and competitiveness of the Cypriot economy. “For us, these priorities are fully compatible with the government’s ideological and political framework of social liberalism, which seeks a strong, competitive economy and a modern, effective and socially responsible state,” he said. Damianou said the government was managing the largest digitisation programme ever undertaken by a government in Cyprus, with more than 200 new digital services introduced over the past two years. Alongside these services, major information technology systems were being introduced across key areas of the state, with a phased delivery approach intended to allow services to become operational gradually and reduce the risk of failure. Among the examples he gave was the eDEA system for managing schools, which has handled more than 136,000 student registrations. The new postal service system has processed more than 300,000 Drop and Send parcels, while other projects include a new Customs system and an integrated platform for the Deputy Ministry of Shipping. The police’s DigiPol platform has issued 21,000 certificates of clean criminal record in just a few months, while the first phase of the upgraded iJustice system has been introduced in the justice sector. Other projects include a new Social Insurance system and CY-Alert, which is designed to provide the public with timely information and guidance during emergencies. Damianou said the changes were already producing measurable benefits for citizens, particularly through shorter processing times for government services. “At the Social Insurance, for example, digitisation has helped reduce the time taken to examine applications by between 30 per cent and 70 per cent, depending on the benefit,” he said. He added that similar improvements were being achieved in services including the Civil Registry and Migration Department, Social Welfare Services and the Defence Ministry, as well as the recently launched services of the Deputy Ministry of Migration. The Digital Citizen application, which has more than 170,000 users, is also being expanded, with new documents and functions introduced. These include digital identity documents for minors and residence documents for foreign nationals, alongside automatic notifications warning users when their documents are approaching their expiry dates. “Football match tickets are also among the additions planned, and these will be announced within the month,” Damianou said. Looking ahead to 2027, the deputy minister said the government would build on the progress already made through projects intended to improve everyday life and make it easier for businesses to operate. These include new systems for the Department of Road Transport and the Registrar of Companies, with the latter considered particularly important for facilitating business activity and attracting investment. The ministry will also support major government projects scheduled for 2027 and 2028, including the NG 112 emergency communications system, the police command and control centre, a system for managing Turkish Cypriot properties and an integrated umbrella system for patient records. The patient records project is intended to extend the existing capabilities of the General Healthcare System (GeSY). The next stage of the Digital Citizen application will bring further documents and incorporate the functionality of the European Digital Identity Wallet. It will also include an age-verification mechanism, which Damianou described as a practical tool to strengthen the protection of minors online. Cybersecurity will remain another priority, with the government allocating dedicated funding for the third consecutive year. “Digital progress must be accompanied by appropriate security mechanisms,” Damianou said. He said that, for the first time, a common cybersecurity policy framework for the public service had been established during 2026, introducing unified rules, standards and staff training and awareness initiatives. On research and innovation, Damianou said the government would continue investing in research excellence, funding innovative businesses and strengthening links between research and the real economy. He added that Cyprus had also developed new capabilities in artificial intelligence, through the development of national computing infrastructure and its participation in the European AI Factories network through Pharos-CY. A key development would be the new National Artificial Intelligence Strategy to 2032, which Damianou said was due to be approved by the Council of Ministers during the week. “Our aim is clear. Investments in technology and innovation must translate into better services for citizens, greater productivity for the state and new opportunities for growth in our economy,” he said. He said he looked forward to continuing constructive cooperation with all parliamentary parties, arguing that digital progress and stronger research and innovation were shared objectives. Recent US visit Damianou’s budget presentation follows his recent two-day visit to the Plug and Play Silicon Valley Winter Summit, where he sought to strengthen international links and create opportunities for Cypriot companies. During the visit, he met Plug and Play founder and chief executive Saeed Amidi, EMEA managing partner Seena Amidi, and representatives from South Korea, Egypt and Taiwan, as well as Copenhagen’s mayor of health. His programme also included visits and meetings with SRI International, Snowflake and PayPal, and a round-table discussion with members of the Cypriot diaspora organised by Cyprus Catalyst. The visit formed part of the government’s wider effort to connect Cyprus’ innovation ecosystem with international investors, technology networks and markets.
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