Cyprus’ Minister of Finance and acting President of the Eurogroup Makis Keravnos, addressed the press on his role as interim president and referred to discussions on the eurozone’s economic trajectory, member states’ fiscal plans and the process of electing a new Eurogroup president, following the meeting in Brussels.
Keravnos on 11 December said that he is particularly pleased that the Eurogroup has elected a new president, Kyriakos Pierrakakis, whose term officially begins today, 12 December.
He commended the constructive contributions of the new president during the election process, as well as the candidacy of Vincent Van Peteghem, ''whom I warmly thanked for his dedication to the work of the Eurogroup.''
''I am confident that Kyriakos Pierrakakis will prove to be an excellent president, leading the Eurogroup into a new era of cooperation and effectiveness,'' the Finance Minister said.
Keravnos began by acknowledging the departure of Paschal Donohoe from the Eurogroup presidency, expressing "our recognition of his years of dedicated service to the Eurogroup" and emphasizing that "his commitment, energy, and contributions were pivotal to the cohesion of the eurozone."
He noted that Donohoe’s interventions were critical "as we navigated the pandemic, the energy crisis triggered by Russia’s aggression in Ukraine, and new challenges from across the Atlantic."
The minister also announced that he will chair the ECOFIN for six months starting in January, highlighting that today’s Eurogroup presidency was "one of the corresponding obligations."
He added that in the discussion on the eurozone economy, which included the participation of Alfred Kammer, Director for Europe at the IMF, he underscored that the eurozone has demonstrated remarkable resilience.
He went on to say that despite challenges, ''we have maintained positive growth rates, unemployment remains at historic lows, and inflation has returned to target."
However, Keravnos cautioned that "the security situation remains the most serious challenge" and noted that there are "known obstacles" that must be overcome to bolster economic dynamism while maintaining sound public finances.
He explained that ministers exchanged views on "centralized supervision, fiscal rules," and the difficulties of financing defense investments within a restrictive budgetary environment.
Regarding the fiscal plans submitted by member states, Keravnos stated that they were deemed compatible with the net expenditure path recommended by the Council.
He reiterated that the Eurogroup "remains committed to maintaining sound public finances while supporting sustainable growth."
According to the European Commission’s assessment, "three plans are at risk of non-compliance, and two are at risk of substantial non-compliance." He urged the concerned member states to "take the necessary measures to ensure compliance with the Stability and Growth Pact."
Addressing Spain and Belgium, which have yet to submit their budgetary plans, Keravnos called on them to "do so as soon as possible," noting that the Eurogroup will assess them once they are available.
Additionally, Keravnos announced the launch of the selection process for the successor to Luis de Guindos, Vice President of the European Central Bank, whose term expires at the end of May 2026.
(Source: CNA)
