The challenges created by geopolitical tensions, economic uncertainty and rapid technological changes were highlighted by the Minister of Finance of the Republic of Cyprus, Makis Keravnos , at the Limassol Economic Forum , which took place on October 23 at the Parklane Resort & Spa in Limassol.
In his speech entitled 'Navigating Through Turbulent Times: The Role of the European Union and Cyprus', Keravnos referred to the need to strengthen the resilience and competitiveness of the European economy , as well as the importance of strategic cooperation within the European Union and with international partners.
In the Minister's view, the economic and political conditions that until very recently were taken for granted are now changing radically, making it clear that the assumptions and data of an old world require a reexamination of our approaches and an adjustment of policy.
In his detailed presentation of the domestic strategy, Keravnos argued that the Cypriot economy has demonstrated remarkable resilience in recent years against successive waves of external shocks.
As the Minister estimates, the implementation of a prudent fiscal policy, the gradual and steady reduction of public debt, the ensuring of the stability of the financial system and the consistent implementation of structural reforms have significantly strengthened the credibility and international competitiveness of the country.
According to him, resilience and competitiveness are not conflicting goals but two sides of the same strategy, as a competitive economy is better protected from crises, while a resilient economy creates the necessary conditions for quality investments.
However, Keravnos warned that the multidimensional challenges of our time, such as inflation, increased financing costs and the deregulation of international trade, continue to exert intense pressure on households, businesses and social cohesion, requiring the constant vigilance of state mechanisms.
To describe the depth of these upheavals, the Minister of Finance used the ancient Greek philosopher Heraclitus’s saying “everything flows” as a beacon for the future. As Keravnos explained, this philosophical idea means that nothing in the modern world remains static and that change is no longer the exception, but the very nature of today’s economic and political reality.
In his assessment, within this extremely fluid environment, technological transition, the development of artificial intelligence, the strengthening of cybersecurity and the full digitalization of public services are no longer simple options for Cyprus, but basic, non-negotiable conditions for enhancing productivity and shaping new, sustainable economic models.
At the same time, Keravnos emphasised that no country, no matter how strong it is economically or politically, has the resources to face these global crises on its own, a fact that highlights the timeless value of the European Union as a community of values, solidarity and shared responsibility.
As the Minister argues, the European response to intensifying international competition, where major foreign economies are investing aggressively in the green transition and critical raw materials, must be based on a dual strategy that balances strategic autonomy with an open economy.
Recalling the historic slogan of the Cyprus Presidency of the Council of the EU, "An Autonomous Union. Open to the World", Keravnos concluded that Europe must make coordinated use of its specialized human resources, its leading universities and its available funds, while proceeding with the simplification of complex regulations and the drastic reduction of bureaucracy.
