Cyprus’s Finance Minister, Makis Keravnos, announced a comprehensive three-year Action Plan (2024–2027) aimed at encouraging mergers and acquisitions (M&A) among small and medium-sized enterprises (SMEs), which make up 99% of businesses in Cyprus.

Speaking at a conference co-hosted by the Cyprus Chamber of Commerce and Hellenic Bank, Keravnos emphasized that SMEs are the backbone of the Cypriot economy, contributing around 75% of total employment. Yet, they face challenges such as limited financing, difficulty hiring specialized staff, and low international exposure.

The government’s Action Plan is built around three pillars:

1. Changing business culture through public campaigns, events, and promotion of successful M&A examples.

2. Modernizing the legal framework to simplify M&A procedures and align with EU standards.

3. Improving access to finance, including equipment subsidies for merged firms and specific incentives for investors.

Additional initiatives include:

• The creation of an Equity Fund, with €30 million in state contributions to support innovative startups, managed by the European Investment Bank (EIB).

• A National Business Development Agency with €107 million in state funding over five years to support SME and startup financing.

• Planned tax incentives under broader fiscal reform to support business growth.

Keravnos called on SMEs to take advantage of the available tools and noted the government’s openness to stakeholder suggestions.