Cyprus will work hard to make the European landscape simpler, faster, and smarter, said the President of the Republic, Nikos Christodoulides, speaking at the Eurochambres Presidency Meeting at the Cyprus Chamber of Commerce and Industry (CCCI), in Nicosia, on Thursday, 29 January.
He also noted that European autonomy is no longer debatable, but an imperative "that we need to deliver on with urgency", as it also is the foundation of European competitiveness.
President Christodoulides said that the Cyprus Presidency is a responsibility and an honor "that we undertake with a deep sense of duty and ambition, with a single, central aim: to deliver for Europe and for its citizens". He added that, in that context, a very close partnership with the business community is more vital than ever.
"In the face of geopolitical instability, intensifying global competition, volatile energy prices, supply chain pressures, and persistent skills shortages, communities such as this are indispensable in reinforcing Europe’s ability to remain economically strong, build up its competitiveness and subsequently be strategically relevant. Because economic strength and geopolitical relevance go hand in hand. Because we cannot truly be a global strategic actor as a Union without being competitive," he stressed.
The price of dependency
The President continued adding that the Russian invasion of Ukraine has brutally brought to the forefront the price of dependency, but also of the fragility of peace and stability in Europe. "It shattered our long-held assumption, illusion even, that stability in Europe can be taken for granted. From this corner of our Union, as a frontline member state in a volatile region, and one that for over 50 years is under occupation, it is absolutely clear what is at stake. We understand deeply the importance of security and stability, of building resilience even in adversity," he highlighted.
In view of the war in Ukraine, he said, European autonomy is no longer debatable, it is not theoretical. "It is an imperative that we need to deliver on with urgency. In simple terms, autonomy pertains to all aspects of our existence as a Union. It extends beyond foreign policy, to the economy, to trade".
President Christodoulides pointed out that autonomy is also the foundation of European competitiveness, as it translates into affordable and secure energy, resilient supply chains, strong industrial capacity, modern digital networks, and a Single Market that works without fragmentation. "Autonomy is not about turning inwards. It is about being extroverted from a point of internal strength. It is about ensuring that Europe has the economic capacity to remain and expand its openness and global relevance," he noted, adding that Europe's values must be merged with interests, starting from the economy.
"This guiding principle will shape our Presidency’s work," he affirmed.
Referring to the Letta and Draghi reports, he said that Cyprus' Presidency puts this agenda at the forefront. "During the Cyprus Presidency, competitiveness will be at the center of our approach, ensuring that decisions across Council formations support Europe’s productive capacity, energy security and investment environment," he said.
Two key elements: predictability and implementation
As he noted, this requires two key elements: predictability and implementation. At the same time, he added, to build up, we need to admit where we have fallen short, admitting that European rules are complex and very difficult to navigate. "We need to make it simpler and easier for our businesses, our SMEs, our young innovators to thrive", he underlined, stressing that Europe must regulate better, not more.
"Reducing administrative burden, cutting red tape and simplifying reporting obligations will be a cross-cutting priority for our Presidency, including through the Omnibus Simplification Packages. With six packages on the table, and six more expected during our Presidency, Cyprus will work hard to make the European landscape simpler, faster, smarter," he emphasized.
Moreover, he continued, the single market remains Europe’s greatest economic asset, yet still its most underused one. Completing it and strengthening its governance, including through the Single Market Strategy, are among the fastest paths to raise productivity and growth.
The Industrial Accelerator Act is also an important component in this effort, he added. The Commission’s forthcoming Single Market Roadmap to 2028 is highly anticipated, he said, and Cyprus' Presidency will ensure structured follow-up and political guidance on its actions.
A more robust and extroverted trade policy
The President also stressed the importance of investing as a Union in a more robust and extroverted trade policy. "Autonomy and being open to the world are complementary", he noted, adding that we need to engage with our partners on equal terms. "If we truly aspire to be a global power, we must deepen partnerships, including through free trade partnerships, anchored on multilateralism and international law", said President Christodoulides.
In this regard, advancing Europe’s trade agenda will be a central element of Cyprus' Presidency, he noted, adding that we must act decisively to conclude key strategic trade agreements.
The President of the Republic added that Cyprus works to widen the lens through which the EU views its partnerships. Europe’s South Eastern neighborhood, the Gulf, is essential to achieving the Union’s long-term strategic goals: from energy diversification, to trade autonomy, enhanced competitiveness, strengthened security and maritime stability, and climate resilience. "This region, our neighborhood, the greater Middle East, must be part of the equation", he noted, referencing his recent visit to Bahrain, accompanied by a delegation of the Chamber of Commerce for the official opening of the Cyprus Embassy there. As he noted, Cyprus is a small country with fewer than 50 diplomatic missions, but it is present in all countries of the greater Middle East. In Bahrain, he added, there are three EU countries, besides Cyprus, with a diplomatic mission, Germany, France, Italy, and now Cyprus.
Cyprus has consistently and reliably served as an enabler in advancing EU's relationship with the region, from trade partnerships to IMEC, he said.
Visit to New Delhi
Regarding the Presidents of the Commission and the Council's visit to New Delhi on the completion of the negotiations for the Free Trade Agreement with India, he said that this was something Cyprus was pushing from the very beginning. "I am very glad that following Prime Minister Modi’s visit to Cyprus last June, I was recently invited to visit India on 20-23 May, together with a business delegation from the Chamber of Commerce in order to strengthen trade relations with India".
On the new Multiannual Financial Framework, President Christodoulides said that it must encapsulate all the elements that will enable the EU to implement its strategic goals. It must become the vehicle for a Europe that restarts, that innovates, that is able to lead in the world also because it is competitive. Europe that delivers for its citizens and enables them to thrive, innovate, do business. "Negotiations on the new MFF will no doubt be challenging but we have no choice as a Presidency but to deliver", he said, underlining that Cyprus is up to the task.
According to the President, the competitiveness reform agenda that Europe is now advancing is the same agenda his Government has been driving over the last three years at a national level. "Through responsible governance, fiscal discipline, and the resilience of our people, Cyprus has not only decisively turned the page, it is rewriting the narrative", he said, as today, Cyprus stands not only as a symbol of resilience, but as a European economic success story, embracing a new era of sustainable growth and economic engagement.
As he pointed out, over the last three years, Cyprus has recorded steady growth that is among the highest growth rates in the Eurozone. In 2024 its growth rate was at 3.9%. As he said, while the forecast for 2025 is more than 3.2%, "I expect it to be close to 4%, again one of the highest in the Eurozone". Moreover, he added that unemployment has fallen below 5%, with youth unemployment showing the largest decline among EU countries, while job vacancies are increasing, reflecting a dynamic labour market. Primary surplus for 2024 has exceeded 4%, while public debt is already below 55% of GDP, by the end of the year, representing one of the most significant declines in the EU.
"For the first time since 2011, all major rating agencies have restored Cyprus to 'A' investment-grade status", he continued, noting that these results reflect a broader reform effort by the Government, focused on modernizing our economy and strengthening the business environment.
They also go hand in hand with an extrovert and ambitious foreign policy, to deliver on the foreign policy front, he said, giving as example Cyprus' role with the Amalthea maritime corridor to Gaza.
Unparalleled resilience
Concluding, he said that Cyprus and its people will draw on their unparalleled resilience, and will work hard to deliver during the country's Presidency, proving that the added value of each member state of our European family does not correlate with its geographical expanse, but with its commitment to the European project, the added value it brings, and its results in driving the European agenda forward.
Coming back on stage to reply to Eurochambres Deputy President, Wouter Van Gulck's, comment that his words are "music to our ears", but "a familiar tune" they've heard before, President Christodoulides said that EU leaders will discuss competitiveness on February 12th.
"I am very optimistic that we are going to have a discussion that will lead to a concrete decision. As a Presidency from a small member state, without a hidden agenda, without special interests, it’s much easier to deliver", he insisted and called the Eurochambres Presidency to give him their suggestions for the EU's competitiveness. "During the discussion in Belgium on February 12th I will present your ideas to my colleagues", he noted.
(Source: CNA)
