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Under the motto “An Autonomous Union. Open to the World”, Cyprus holds the Presidency of the Council of the European Union from 1 January to 30 June 2026. The Presidency places European strategic autonomy at the centre of its agenda, seeking to balance openness to global trade with the EU’s ability to act independently where necessary. The Cypriot Presidency provisional agenda of ministerial meetings for the first half of its mandate, provides insights on legislative priorities and the expected pace of negotiations.

A priority of the Cypriot Presidency is the reform of the EU Customs Union. Cyprus has signalled its intention to conclude trilogue negotiations on the EU Customs Reform Package, including the proposal for a revised Union Customs Code and the establishment of a new European Union Customs Authority.

The Carbon Border Adjustment Mechanism (CBAM) remains high on the Presidency’s agenda, with a particular focus on cross-sectoral issues and implementation challenges. A General Approach on the extension of CBAM is targeted for 10 March.

In the area of indirect taxation, the Presidency will continue technical work on  VAT and excise files. This includes further progress on the revision of VAT rules for distance sales of imported goods and import VAT, as well as ongoing discussions on the Tobacco Taxation Directive. Cyprus has also indicated its readiness to begin work on new proposals aimed at strengthening administrative cooperation and combating VAT fraud, underscoring the continued emphasis on enforcement, data sharing and compliance.

Trade policy, sanctions enforcement and economic security also feature prominently. Stronger implementation and enforcement of EU trade rules, combined with continued efforts to prevent sanctions circumvention, are expected to further increase the operational relevance of customs authorities and intermediaries across the EU.

On transport policy, the Presidency does not anticipate reaching General Approaches on the main files of the Automotive Package during its term.  Discussions on the revision of CO₂ emission standards for light-duty vehicles are scheduled for the Environment Council on 17 March, with a further state-of-play discussion and progress report foreseen at the Environment Council on 25 June.

A similar approach is planned for the Clean Corporate Fleets Regulation and related Omnibus files, including the automotive omnibus. These dossiers are expected to be addressed through progress reports only at the Transport Council on 8 June and the General Affairs Council on 26 May respectively, rather than through the adoption of General Approaches.

Beyond the Automotive Package, the Presidency plans a policy debate at the Transport Council on 8 June on military mobility legislation, alongside the adoption of Council conclusions on port and maritime strategies.