President Nikos Christodoulides received a delegation from the American Israel Public Affairs Committee (Aipac) at the presidential palace on Wednesday, with both sides pledging to strengthen relations between Cyprus, the United States and Israel.

The delegation was led by outgoing Aipac president Dr Bernard Kaminetsky and president-elect Yehuda Neuberger, who stressed that Aipac would continue to back Cyprus’ interests in Washington.

Talks reportedly covered the Cyprus issue and efforts to accelerate the “3+1” mechanism, which brings together Cyprus, Greece and Israel with the United States.

Members also attended a Nicosia ceremony honouring Jewish refugees and the children born between 1946 and 1949 at the former British military hospital.

Six MPs recently launched a Cyprus chapter of the Israel Allies Foundation (IAF), those being Andreas Apostolou and Chrysis Pantelides of Diko, George Karoullas and Charalambos Petrides of Disy, and Sotiris Ioannou and Marios Pelekanos of Elam.

A Cyprus chapter of Transatlantic Friends of Israel (TFI) had likewise been set up two weeks earlier with MPs from the same parties.

Akel called the move “extremely provocative” and accused the three parties of turning parliament into a lobby for Israel.

Aipac is an American pro-Israel lobbying group that advocates policies strengthening the US-Israel relationship.

It was founded in 1954 as the American Zionist Committee for Public Affairs by Isaiah L Kenen, a lobbyist for the Israeli government.

It is considered one of the most influential lobbying groups in the United States and reports more than five million members and 17 regional offices.

Critics have condemned Aipac as being an agent of the Israeli government and does not represent the diversity of views among American Jews.

A second arrest was made on Tuesday over the kidnapping and assault of a 24-year-old Turkish Cypriot man in Limassol, police said.

The arrested man is 45, with the police already having arrested a 30-year-old man early on Tuesday morning, while the police said that the two, as well as a third individual who is wanted, are Greek Cypriots.

According to police, the victim had said that at around 7pm on Friday, while he was in a park, three people approached him, and that following an argument, they had asked that he get into their car.

He said he was then taken to an unknown rural location, where he was stabbed in the right leg.

The three perpetrators then fled, while the victim was found by a passerby, who took him to the Limassol general hospital.

On Monday, Limassol police deputy operations chief Lefteris Kyriacou said that the perpetrators kidnapped the victim, and then “hit him and injured him with a knife”, as “they believed him to be a suspect regarding recent cases of dog thefts”.

He later added that the police are investigating “a case of kidnap and causing grievous bodily harm”, and that “developments are expected in the coming period”.

The police’s investigation into the matter is ongoing.

Five people have been arrested in Cyprus, Germany and Italy as part of a European investigation into an alleged €114 million VAT fraud operation involving the cross-border smartphone trade.

The European Public Prosecutor’s Office (EPPO) announced on 16th October that three suspects had been detained in Cyprus, one in Germany and one in Italy following an investigation coordinated by its Munich office.

Investigators believe the suspects established and controlled a network of companies designed to exploit the tax treatment of goods traded between EU member states.

The alleged operation involved smartphone transactions through businesses and so-called missing traders operating in Germany, Albania and Sweden. Prosecutors estimate that the activities caused VAT losses of approximately €80 million in Sweden and €34 million in Germany.

According to the official announcement of the arrests, the operation forms part of a wider investigation known as Midas, which is examining organised cross-border tax fraud.

Searches across several countries

The arrests were accompanied by searches and seizures in Cyprus, Greece and Italy, conducted with the assistance of national police, financial investigators and tax authorities.

Prosecutors said 12 searches had been carried out at premises connected with the suspects and companies under investigation.

Assets of up to €80,000 were frozen, while investigators also seized or took action against bank accounts, vehicles and property.

The operation involved cooperation between Germany’s tax authorities, Cyprus’s financial intelligence and cybercrime units, the Greek financial police and Italy’s Guardia di Finanza.

The suspects are believed to have played leading roles in organising and controlling the alleged scheme, although prosecutors have not publicly established their individual criminal responsibility.

The investigation remains subject to proceedings before the competent German courts. All suspects are presumed innocent unless proven guilty.

How the alleged fraud operated

The case concerns a form of tax evasion known as missing-trader intra-community fraud, commonly described as carousel VAT fraud.

Under the EU’s VAT system, qualifying business-to-business transactions involving goods transported between member states are generally exempt from VAT in the country of dispatch.

The purchaser accounts for VAT under the rules applicable in the destination country, while subsequent domestic sales normally involve VAT being charged to the buyer.

Fraudsters can exploit those arrangements by establishing companies that purchase goods through cross-border transactions before reselling them domestically.

A missing trader collects VAT from the purchaser but fails to remit it to the relevant tax authority. Other companies in the transaction chain may then seek deductions or refunds.

The same goods can pass through several businesses and, in some arrangements, move repeatedly between countries, allowing the fraud to be repeated.

Smartphones and electronic equipment are particularly attractive because they are relatively expensive, easily transported and can be traded in large volumes.

The complexity of the arrangements makes investigations difficult when businesses are established in several jurisdictions and transactions move rapidly between companies.

A wider European problem

The latest arrests follow another substantial VAT fraud operation announced earlier this month.

On 7th October, the EPPO reported that 62 suspects had been detained in a separate investigation involving alleged losses of at least €410 million.

That operation, known as Hermes, involved searches across eight countries and allegations concerning the sale of mobile phones and other electronic devices.

Although separate from Midas, the investigation illustrates the scale and organisation of suspected VAT fraud involving internationally traded consumer electronics.

According to the EPPO‘s 2025 annual report, prosecutors were handling 3,602 active investigations at the end of last year, with estimated potential damage exceeding €67 billion.

Of that amount, more than €45 billion related to suspected VAT and customs fraud.

Those figures concern estimated losses under investigation, rather than sums established by final court judgments or amounts that have already been recovered.

Protecting European tax revenues

The financial consequences extend beyond the immediate losses attributed to individual schemes.

VAT is a major source of revenue for national governments and forms part of the system used to calculate certain contributions to the EU budget.

Fraudulent transactions can also distort competition by allowing dishonest operators to offer prices that legitimate businesses cannot match.

The Commission’s 2025 VAT gap report estimated that EU countries failed to collect approximately €128 billion in expected VAT revenue in 2023.

That broader figure includes losses arising from several causes, including administrative errors and insolvency, and cannot be attributed entirely to criminal fraud.

The latest arrests also demonstrate the importance of cross-border investigative cooperation when suspected financial offences involve companies, transactions and assets located in different countries.

In the Midas investigation, prosecutors must now establish the precise roles of the suspects, prove the alleged transactions and determine whether criminal proceedings can result in convictions and financial recovery.

The arrests represent another stage in the investigation, not a judicial finding that the alleged €114 million fraud has been proved.

The European Union and Turkey are preparing high-level talks before the end of October in an attempt to revive negotiations over Cyprus, following an initiative by United Nations Secretary-General António Guterres.

Cypriot President Nikos Christodoulides announced the planned meeting on 16 October during the European Council summit in Brussels, saying discussions would address both the resumption of negotiations over the island’s division and the possibility of improving relations between Ankara and the EU.

The initiative follows diplomatic contacts in New York involving Guterres, European institutional leaders and the Cypriot government. However, renewed differences over the conditions for negotiations have already cast doubt on whether the process can produce substantial progress.

On Sunday, 18 October, Christodoulides accused Turkish Cypriot leader Tufan Erhürman of imposing preconditions before formal negotiations could resume, particularly concerning arrangements for a rotating presidency in a reunited Cyprus.

The disagreement underlines the difficulties facing an initiative intended to reconnect the UN peace process with the EU’s broader relationship with Turkey.

Brussels seeks a negotiating role

Christodoulides said the planned meeting between the EU and Turkey would examine how to establish the necessary conditions for negotiations to restart within the previously agreed UN framework.

He indicated that any improvement in EU–Turkey relations would be linked to progress over Cyprus.

The president’s announcement in Brussels follows months of diplomatic consultations involving the Commission, European Council and UN.

European Commission President Ursula von der Leyen and European Council President António Costa have urged Turkish President Recep Tayyip Erdoğan to support the renewed peace initiative.

Turkey’s relationship with the EU encompasses trade, customs cooperation, migration and regional security. Ankara remains an EU candidate country, although accession negotiations have been effectively stalled for years.

Cyprus remains one of the principal obstacles to any substantial improvement in that relationship.

The island has been divided since Turkey’s military intervention in 1974. The internationally recognised Republic of Cyprus joined the EU in 2004, but EU law remains suspended in areas where its government does not exercise effective control.

The self-declared Turkish Republic of Northern Cyprus is recognised only by Turkey.

Disagreement over political equality

The UN has traditionally sought a settlement based on a bizonal, bicommunal federation with political equality between the Greek and Turkish Cypriot communities.

Negotiations collapsed at Crans-Montana in Switzerland in 2017 amid unresolved disputes over security guarantees, political representation, territory and the presence of Turkish troops.

Erhürman, who became Turkish Cypriot leader in 2025, has expressed support for renewed negotiations within a federal framework. However, he wants assurances about political equality and the structure of future talks.

The latest dispute concerns whether the principle of a rotating presidency between the two communities should be accepted before negotiations resume.

Christodoulides rejected that demand on 18 October, arguing that substantive questions should be negotiated together rather than settled in advance.

The Turkish Cypriot leadership regards rotating executive power as an essential element of political equality, while the Greek Cypriot side objects to making agreement on that arrangement a prerequisite for restarting discussions.

The disagreement has emerged despite recent efforts by the United Nations to improve relations between the communities.

In a statement issued on 13 October, the UN confirmed that Christodoulides and Erhürman had met in Nicosia and agreed to continue discussions, including participation in bicommunal initiatives.

The two leaders subsequently attended a joint event in Pyla, although their public differences persisted.

Turkey’s position remains decisive

A Cyprus settlement would require agreement not only between the island’s communities but also on Turkey’s military presence and the system of security guarantees established at independence.

Ankara has long maintained that Turkish Cypriots require effective political equality and credible security arrangements.

Greek Cypriot leaders argue that the continuation of foreign intervention rights and Turkish military deployments would be incompatible with a fully sovereign and reunited state.

The EU cannot resolve those differences independently of the UN process, but it can influence the economic and institutional framework within which a settlement might operate.

A comprehensive agreement would affect property ownership, trade, customs arrangements, border administration and the application of European law throughout the island.

The European Commission has sought a greater role in supporting the UN-led peace process, reflecting Brussels’ interest in progress towards a settlement.

Negotiations face immediate test

The UN Secretary-General’s personal envoy, María Ángela Holguín, has warned that the opportunity for renewed negotiations may be narrowing.

Disagreements over diplomatic representation, contacts with foreign missions and the status of Turkish Cypriot institutions have complicated relations between the two communities.

Christodoulides has also referred to a series of proposals intended to advance discussions, including the future of the fenced-off area of Varosha. Their full contents have not been publicly disclosed.

The proposed EU–Turkey meeting offers a separate diplomatic channel through which Brussels can assess Ankara’s willingness to support renewed negotiations.

No final date, detailed agenda or list of participants had been publicly confirmed by 18 October.

The immediate test will be whether the parties can agree on the basis for formal talks without attempting to settle disputed constitutional questions before negotiations begin.

Joshua Foster pleaded guilty over death of toddler who fell from fourth-floor window of hotel during family holiday

A British man has been fined €3,000 (£2,500) after his two-year-old son fell 10 metres (33ft) to his death from the fourth-floor window of a hotel in Cyprus.

Joshua Foster thought the window was closed when he approached it with the boy to show him the view of a waterpark and “lost control” of him, the court previously heard.

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© Photograph: James Manning/PA

© Photograph: James Manning/PA

© Photograph: James Manning/PA

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