The House of Representatives on Wednesday rejected a legislative amendment that sought to freeze state funds earmarked for the Great Sea Interconnector, effectively granting the Ministry of Finance full autonomy to release millions of euros to the project’s implementing body.
The amendment, which was defeated by a razor-thin margin of 27 votes in favour to 28 against, targeted an allocation of approximately €54 million. These funds are intended to cover two instalments of €25 million each for the years 2025 and 2026, payable to the Independent Power Transmission Operator (IPTO) of Greece.
Political split over financial oversight
The rejection of the freeze was secured primarily through the combined votes of DISY and DIKO lawmakers. The outcome means that the Ministry of Finance is now authorised to disburse the funds whenever it deems appropriate, without the need for further parliamentary briefing or intervention.
The defeated proposal reflected ongoing concerns among certain parliamentary factions regarding the fiscal risk and the long-term cost-benefit analysis of the subsea cable project. Proponents of the freeze argued for stricter oversight of the Republic’s contribution to the multi-billion euro interconnector, which aims to end the island’s energy isolation by linking the Cypriot, Greek, and Israeli grids.
Strategic and fiscal implications
By maintaining the current budgetary flow, the government avoids potential delays in its contractual obligations to IPTO. The €50 million commitment is part of a broader state support package designed to mitigate the cost of the project for Cypriot consumers during the construction phase.
The decision comes at a critical time for the Great Sea Interconnector, as the project faces continued geopolitical challenges and technical scrutiny. With the legislative hurdle removed, the Ministry of Finance can proceed with the payments, which are seen as vital “seed money” to maintain the project’s momentum ahead of major construction milestones in 2026.
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