Alpha News

How Has the 'Cyprus' Brand Been Damaged?

Published January 25, 2026, 06:11

The article examines the potential impact of the video revealing black money and campaign finance on the 'Cyprus' brand, particularly in relation to foreign direct investment (FDI). Despite government denials, technocrats and business leaders warn of the risk of capital flight and loss of investment interest. The President of the Fiscal Council of Cyprus, Michalis Persiani, emphasizes that the nature of the investments currently hosted in Cyprus – mainly companies with high mobility – makes the risk of outflow real. He points out that the lack of strategy and the uncontrolled inflow of FDI create problems such as traffic congestion, housing shortages and inequalities. Mr. Persiani mentions that countries that relied on large inflows of FDI in the past, such as Malaysia and South Korea, have experienced capital flight. He also refers to the Ukrainian issue as an example of a possible return of capital after the completion of reconstruction. To mitigate the risk of outflow, the President of the Fiscal Council proposes a more active and strategic framework, modeled on countries such as the Netherlands and Singapore, with an emphasis on creating organic relationships between investments and the local economy.