If we succeed in empowering small and medium sized enterprises, we will not only enhance competitiveness, but we will also secure Europe’s autonomy, Minister of Energy, Commerce and Industry, Michael Damianos, has said, speaking at the Extraordinary Employers’ Group meeting in Nicosia.
In his address, Damianos noted that the theme of the meeting, 'Autonomy through competitiveness: SMEs at the core of Europe’s strategic preparedness.” "captures perfectly the direction in which the European Union must move,' a Ministry press release said.
"Strategic autonomy is no longer an abstract ambition. It is a practical necessity, shaped by geopolitical uncertainty, technological disruption, and the urgency of the green transition. And at its core lies one fundamental condition: competitiveness," he said.
In Cyprus, Damianos noted, out of approximately 125,000 businesses, around 99% are SMEs. They are the primary drivers of employment, innovation, and growth, sustaining local communities, supporting regional development, and contributing decisively to our economic vitality.
At a national level, he said that the Ministry of Energy, Commerce and Industry has placed SMEs at the heart of its comprehensive policy framework, implementing targeted measures to strengthen competitiveness and productivity, while enabling businesses to adapt to a rapidly changing environment.
"First, we are actively investing in entrepreneurship. Second, we are improving access to finance," he went on to say.
He explained that "through the effective utilisation of European funding instruments, we are channelling substantial resources into the real economy. Under the 2021–2027 programming period, €227.3 million has been secured through the Cohesion Policy Funds, complemented by €124.5 million from the Recovery and Resilience Fund and the new REPowerEU Plan."
In addition, he said that the Ministry is focusing on industrial modernisation and is working to reduce structural barriers, including production costs, skills mismatches, and weak linkages between services and industry.
National efforts alone are not sufficient, he stressed, adding that this is why, under the Cyprus Presidency of the Council of the European Union, we are actively contributing to shaping a coherent European response.
The Minister recalled that at the recent Informal Meeting of Competitiveness Ministers in Nicosia, "we emphasised that strengthening the Single Market remains the cornerstone of European competitiveness. A deeper, more integrated Single Market is essential to allow SMEs to scale, innovate, and compete globally."
"We also highlighted the need to reinforce Europe’s industrial base, including in strategic sectors such as defence, where over 2,500 SMEs play a critical role. Supporting these enterprises requires not only financing tools, but also better coordination, standardisation, and the removal of fragmentation across markets," he added.
The Minister said that Europe has all the necessary assets: a strong industrial base, a highly skilled workforce, world-class research, and a unique social model.
What is required now, he stressed, is alignment between European and national policies, between ambition and implementation, and between economic strength and societal resilience.
"SMEs are central to this effort. If we succeed in empowering them, we will not only enhance competitiveness, but we will also secure Europe’s autonomy, strengthen its preparedness, and ensure sustainable prosperity for all," Damianou concluded.
(Source: CNA)
