The intense negotiations over Cyprus’s tax reform bill are emerging as a live “paper exercise” for a burgeoning centre-right alliance. What began as theoretical talk of cooperation is now manifesting in the halls of Parliament, with the recent passage of the state budget serving as a further indicator of a shifting political axis. While DISY’s support for the budget was expected, the intricate maneuvering behind the tax reform suggests a deeper level of strategic coordination.
A “Win-Win” Equation for the Right
The tax reform debate has created a distinct political pole as parties look ahead to the May 2026 legislative elections. DISY, DIKO, and DIPA successfully pushed for popular concessions—most notably an increase in the tax-free income threshold—aiming to secure electoral gains. Simultaneously, the Ministry of Finance made a calculated retreat, accepting a €110 million hit to state coffers to guarantee a parliamentary majority for a cornerstone government reform.
This alignment dovetails with the government’s broader narrative: a strong economy enabling social policy and modernising reforms. The result is a “win-win” scenario that solidifies a centre-right front in a landscape increasingly divided between the Right and the Left.
Strategic Rifts and the 2028 Horizon
Despite the visible cooperation, significant friction remains under the surface. At DISY headquarters (Pindarou), two schools of thought are clashing:
The Bridge Builders: Those who view centre-right cooperation as a vital link to the Christodoulides administration.
The Power Seekers: Those who see it as a vehicle to reclaim the presidency with their own candidate in 2028—a path that would require DIKO and DIPA to break ties with the current President.
Current DIKO President Nikolas Papadopoulos has already signaled that these parties have proven they can govern together on economic issues. However, recent “defections” of prominent members between DIKO, DIPA, and EDEK have complicated the math for the next big test: the election of the Speaker of the House.
Christodoulides Positions for a Second Term
President Nikos Christodoulides is entering the second half of his term with a clear eye on 2028. His recent cabinet reshuffle was a strategic strike, appointing high-profile figures from DIKO and DIPA to bind the parties closer to his administration while maintaining a centrist-right profile.
The President’s strategy appears to focus on the first round of the 2028 presidential race. By securing a base that spans DIKO, DIPA, EDEK, and a segment of DISY voters—alongside the further-right audience—he aims to establish himself as the indispensable pillar of the centre-right.
The DISY Internal Power Struggle
Inside DISY, a cold war is brewing between former leader Averof Neofytou and current President Annita Demetriou.
Averof Neofytou: Despite not running for Parliament, Neofytou is maintaining a high-profile leadership presence, clearly weighing a 2028 presidential bid via the party’s new primary process.
Annita Demetriou: While silent on her intentions, Demetriou is widely believed to be eyeing the same goal. Critics within the party suggest her parliamentary campaign feels more like a personal presidential run.
Though the two leaders recently met to pledge focus on the 2026 elections, insiders report a total breakdown in trust, with both sides keeping their strategic cards close to their chests.