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Our View: Diko has a point. Maybe the finance minister should resign

Cyprus Mail · 2026-09-23

AI SUMMARY

• What happened: Finance Minister Makis Keravnos faced calls for resignation from Diko leader Nicolas Papadopoulos due to his opposition to the Great Sea Interconnector (GSI) project, which Keravnos argues is unviable and could harm public finances. • Why it matters: The situation highlights internal tensions within the governing coalition regarding a significant infrastructure project that aims to improve Cyprus' energy connectivity, raising questions about the coherence of government support for the GSI. • What to watch next: Observers should monitor how the government navigates the conflicting views on the GSI, particularly in light of President Christodoulides' conditional support and the implications for the coalition's unity and decision-making process.

**Title: Calls for Finance Minister's Resignation Highlight Tensions Over Great Sea Interconnector Project**

In a recent political discourse, Finance Minister Makis Keravnos found himself at the center of controversy following remarks made by Nicolas Papadopoulos, the leader of the Democratic Party (Diko). Papadopoulos suggested that Keravnos should resign due to his consistent opposition to the Great Sea Interconnector (GSI) project, a significant infrastructure initiative aimed at enhancing Cyprus' energy connectivity.

Keravnos has been vocal about his concerns regarding the GSI, arguing that the project is unviable and could exceed budgeted costs, potentially straining public finances. His stance has led to a notable public disagreement with the former Energy Minister, George Papanastasiou, who supported the project. Keravnos has referenced studies conducted by the Cyprus energy regulator and a due diligence report from a U.S. firm, both of which indicated that the project's profitability would fall short of expectations.

The situation escalated recently when the French investment firm Meridiam acquired a 66% stake in the GSI project, prompting President Nikos Christodoulides to reaffirm the government's commitment to moving forward with it. However, Christodoulides has since adjusted his position, making Cyprus' support contingent upon Greece issuing a Navtex for necessary sea surveys. Despite this, he emphasized that the government would fulfill its financial obligations, including an overdue payment of €25 million related to the project.

Papadopoulos raised a critical point in questioning the rationale behind the government's support for a project that Keravnos believes could be detrimental to the nation. He stated, “Why, according to the finance minister, is the president promoting a project which he believes will be disastrous for the country?” This inquiry underscores the apparent conflict within the government, as Keravnos continues to express his reservations publicly while being part of an administration that endorses the GSI.

The GSI is not merely a minor infrastructure project; it represents a substantial investment aimed at alleviating Cyprus’ energy isolation and has garnered support from both the French government and the European Commission, which has committed approximately €600 million to the initiative. Given the scale and significance of the GSI, Papadopoulos' call for Keravnos to resign raises questions about the coherence and unity of the government’s approach to such a pivotal project.

Interestingly, Diko, the party led by Papadopoulos, is part of the governing coalition, which complicates the dynamics of the situation. Traditionally, coalition partners may avoid public disputes, especially on critical issues. However, Papadopoulos' stance indicates a willingness to confront perceived inconsistencies within the government. The Democratic Rally (Disy), another coalition partner, later issued a statement supporting Diko and criticizing Keravnos for undermining the project’s importance.

In response to the calls for his resignation, Keravnos downplayed the significance of Papadopoulos' remarks, asserting that he remains focused on serious matters affecting the future of the country. He expressed confidence in the government's direction, despite his ongoing critique of the GSI project.

This political friction highlights broader concerns regarding the government's decision-making process and its ability to navigate significant infrastructure projects. As the GSI continues to develop, the interplay between the finance minister's reservations and the government's commitment will be closely scrutinized by both the public and political analysts.

The ongoing debate reflects the complexities of governance in Cyprus, where differing opinions on major projects can lead to tensions within a coalition. As the situation evolves, it remains to be seen how these internal conflicts will impact the GSI's progress and the broader political landscape in Cyprus.

Source: Cyprus Mail
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