Cyprus’ Finance Minister Makis Keravnos presented the programme of the Cyprus Presidency at the first meeting of EU finance ministers (ECOFIN) in Brussels, setting out the priorities for the coming six months.
“An autonomous Union open to the world is the motto of our Presidency. Guided by this motto, we are committed to delivering an ambitious and impactful Presidency. We want to build momentum towards a thriving, more competitive Europe,” Keravnos said, speaking on 20 January.
He underlined that Cyprus is assuming the Presidency “at a time of international geopolitical realignments and uncertainty,” with the European Union facing multiple challenges. “In the field of economic and financial affairs, strengthening the European Union’s economic autonomy and reinforcing its economic standing will be our core principles for the next six months,” the Minister added.
Keravnos also highlighted the specific role of ECOFIN in shaping decisions, stressing that finance ministers would be able to arrive at concrete proposals and decisions within the political direction set by EU leaders.
Legistlative priorities
On legislative priorities, Keravnos stressed that the Presidency intends to advance legislative work on the Savings and Investments Union (SIU), while making sufficient progress on the Capital Markets Union agenda, particularly on initiatives aimed at enhancing competitiveness and completing the integration of the EU banking sector. In the area of taxation, Cyprus will promote the EU programme for the simplification of tax legislation, within the broader efforts to strengthen competitiveness. The Presidency also aims to push forward legislative work towards a modernised Customs Union.
“A central priority will be to ensure that the EU continues to provide financial support to Ukraine. We are fully committed to ensuring that Ukraine receives the necessary and timely funding to support its defence and help with its future reconstruction,” Keravnos added.
Referring to Tuesday’s ECOFIN agenda, the minister informed the press of the approval of mainly technical, “targeted amendments” to the Recovery and Resilience Plans of Finland, Germany, Ireland, the Netherlands, Spain and Sweden, in order to accelerate their implementation. As regards the European Semester, no member states were found to require in-depth macroeconomic reviews, and ECOFIN “will continue to monitor the situation in the seven countries identified in 2025 as having imbalances.”
Keravnos also referred to the opening of an excessive deficit procedure for Finland, as its public deficit exceeded the Treaty limit in 2024, reaching 4.4%, and is forecast to exceed it again in 2025, at 3.5%. “We have asked Finland to report on the progress made in implementing these recommendations at least every six months, in spring through the annual progress report and in autumn through the draft budgetary plan, until the excessive deficit is corrected. Finland should bring the excessive deficit to an end by 2028,” he said.
Economic challenges and political developments
On the informal part of the Council meeting earlier in the day, Keravnos said that, “in light of recent developments, ministers exchanged views on current economic challenges and political developments,” including Greenland. “The European Union stands firmly alongside Denmark and the people of Greenland. We remain united behind our principles regarding respect for international law and in particular the principles of territorial integrity and sovereignty,” he said.
“As you know, leaders will meet here in Brussels on Thursday evening to assess the situation and coordinate on next steps. Finance ministers are ready to take any follow-up action, based on the guidance we receive from our leaders,” Keravnos added, stressing that “it is vital to have a practical and strong European response.”
Asked by CNA on whether intense geopolitical developments would affect discussions at ministerial level regarding the implementation of the Presidency’s programme, Keravnos responded: “I think it will affect it, but on a positive manner. We will have to focus more on certain priorities, accelerate procedures and take political decisions as soon as possible on very specific issues, because developments are indeed rapid.”
European Commissioner for Economy Valdis Dombrovskis opened his remarks by expressing confidence in strong cooperation with the Cyprus Presidency, welcoming “the important emphasis in the work programme and the focus on competitiveness, defence and the digital euro,” and noting his willingness “to work closely with the Cyprus Presidency to achieve the milestones of the programme.”
EU–US developments
On EU–US developments, he stressed that the EU must act with unity and determination: “More than ever, our Union needs to show unity, decisiveness and strength, and we need to work on enhancing our competitiveness and defence capabilities,” said Dombrovskis. Referring to Greenland, Dombrovskis added: “We are in full solidarity with Denmark and Greenland. Any questioning of the sovereignty of a member state is unacceptable,” while noting that “we keep all options on the table, but our priority remains constructive engagement with the United States.”
Keravnos complemented the Commissioner’s remarks, pointing out that the issue has both political and economic dimensions, including tariffs. “Therefore, finance ministers have a role to play. There are also our colleagues, the trade ministers. We are waiting for the conclusions of the discussion among heads of state so that we can have a concrete basis on which to build our responses and arguments,” he said, adding that finance ministers “will be able to arrive at concrete proposals and decisions within the political direction given.”
€90 billion financial support package for Ukraine
On Ukraine, Dombrovskis referred to the proposed €90 billion financial support package, which aims to strengthen Ukraine’s fiscal sustainability and defence. “This is crucial to ensure a just and lasting peace and real security for Ukraine and Europe in the long term,” he said, expressing the expectation that the legislative process will be completed by March, allowing first disbursements already in April.
Asked whether, in light of former US President Donald Trump’s tariff threats, the Commission’s stance on European governments purchasing weapons from the US for Ukraine had changed, Dombrovskis replied: “Our proposal remains broadly unchanged: priority should be given to producers in Ukraine, the EU and the EEA, as well as countries with security agreements with the EU.” He added that “there is room for derogation if needs cannot be met from Europe, because the priority is to meet Ukraine’s real defence needs.”
As he noted, “there is broad agreement on the principle of cascading priority: Europe and its partners first, but the possibility to purchase from other countries if necessary.”
Condolences to the people of Spain
The Minister expressed his deepest condolences to the families of the victims of the tragic train accident that occurred in Andalusia on Sunday, noting that “we all stand in solidarity with the Spanish people at this time.”
(Source: CNA)
