Nicosia: Cyprus ranks among the EU Member States with strong connectivity infrastructure and high ambition ahead of the Digital Decade 2030, according to the European Commission's Digital Decade 2026 Report, published on Wednesday. However, the report highlights that Cyprus still faces significant challenges in AI adoption by businesses, digital skills development, and further modernization of public digital services.
According to Cyprus News Agency, to address these gaps, the EU Commission urges Cyprus to accelerate its digital transition by implementing its AI strategy, invest in submarine interconnection cables, enhance cybersecurity for critical systems, including underwater cables, speed up public sector digitisation, particularly in transport, healthcare, and justice, expand digital skills programs for elderly citizens and those with low education levels, and improve access to e-health services through mobile apps, digitized medical records, and inclusive services.
In terms of connectivity and infrastructure, Very High Capacity Network (VHCN) coverage stands at 89.1%, while Fiber-to-the-Premises (FTTP) coverage also reaches 89.1%. 5G coverage has reached 100% of the territory. Cyprus has 14 edge nodes, exceeding the 2030 national target of 10.
In the business and innovation sector, 67.3% of SMEs have at least a basic level of digital intensity, 45.5% use cloud computing services, 33.5% leverage data analytics, and only 7.9% adopt AI applications, a figure below the EU average. The Commission emphasizes that additional actions are needed to accelerate AI integration into the economy. Cyprus also shows significant progress in innovation, with four unicorn companies registered, and its participation in high-tech EU initiatives strengthens its position on Europe's digital map.
In the area of skills, 49.5% of citizens have at least basic digital skills, a percentage that remains below the 2030 target of 80%. ICT specialists account for 5% of total employment. The Commission warns that differences between age groups and education levels continue to be a significant obstacle to fully exploiting the opportunities of the digital economy.
Citizens' access to digital public services is steadily improving, with the relevant score at 77.6, while services for businesses reach 86.0. Access to electronic health records is recorded at 75.4. Despite progress, Cyprus still lags behind the EU average in certain areas, mainly in cross-border digital services, digitization of local government, and the digital transformation of the justice system.
Cyprus stands out as a significant factor in cybersecurity and quantum communications, with the CYQCI project being part of a pan-European quantum communication network aimed at creating extremely secure data transmission channels.
Additionally, Cyprus hosts one of the EU's three Cyber Hubs, created through the Cyber Solidarity Act, strengthening its role in cross-border cooperation on cybersecurity. The Commission also notes the strategic importance of Cyprus in the current geopolitical context regarding subsea cables, as the country intensifies its efforts to become a regional connectivity hub in the Eastern Mediterranean.
At the funding level, the report states that Cyprus has allocated 30% of its Recovery and Resilience Plan, worth 300 million euros, to digital actions, while an additional 100 million euros from the Cohesion Policy is directed towards the digital transition. The country also participates in EUROPEUM-EDIC for blockchain services, as well as in the EuroHPC Joint Undertaking and Chips Joint Undertaking initiatives.
The report notes that Cyprus has set all 14 available national targets within the Digital Decade framework, with 86% of them aligned with the EU's 2030 goals. Of the progress indicators set for 2025, 77% are on track to be achieved. The total public funding associated with the measures of the national roadmap amounts to 117 million euros.
According to the special Eurobarometer on the Digital Decade 2026, 89% of Cypriots believe that digital policy should be a high priority for the European Union. 93% demand stronger cybersecurity, 91% want more digital education and skills programs, and 88% support stricter regulation of online platforms. At the same time, 85% support the prioritization of investments in European digital infrastructure and services.
Finally, the Commission addresses a series of recommendations to Cyprus to accelerate its digital transition. Regarding artificial intelligence, it calls on the country to immediately convert the new national AI strategy into specific support measures for businesses, especially SMEs, through specialized skills development programs, strengthening human capital, attracting talent, and broader utilization of the new AI Factory Antenna in Cyprus.
At the same time, it suggests strengthening investments in the subsea cable ecosystem, aiming to empower the country's and the EU's digital sovereignty, as well as participation in European initiatives for the security and resilience of Mediterranean underwater networks.
The EU executive also requests further strengthening of cybersecurity, particularly for critical infrastructure such as subsea cables, as well as an investigation into the utilisation of the national quantum communication infrastructure to protect strategic systems.
It also calls on Nicosia to accelerate the implementation of the public sector digital transformation strategy, with emphasis on cross-border services in transport, health, business, and justice, as well as further digitization of local government.
Additionally, it proposes strengthening digital skills programs for older people and citizens with lower education levels, while in the field of e-health, it requests the rapid completion of projects that will allow citizens access to electronic health records through mobile applications, the provision of medical images and discharge summaries in digital form, and ensuring equal access to e-health services for all social groups.