FinMin: Tight timelines a challenge in implementing recovery plans

Finance Minister Makis Keravnos described “tight timelines” as one of the main challenges faced in implementing Cyprus’ Recovery and Resilience Plan, when he addressed the Economic and Financial Affairs Council of the EU (Ecofin) in Brussels on Tuesday.

Keravnos briefed his counterparts on the national Recovery and Resilience Plan, noting that the main challenge for Cyprus are tight timelines, given the disruptions in supply chains and high inflation.

He said efforts were underway to revise the plan in a way that doesn’t affect targets and ambitions, but instead prevents the allocation of resources to unsustainable and obsolete projects.

During a debate over the approval of conclusions on orientations for a reform of the EU economic governance framework, the Finance Minister advocated for "a more realistic and gradual reduction of public debt, taking into account national specificities". Cyprus, Keravnos added, agrees with "the promotion of the necessary reforms and investments that will lead to an ambitious green and digital transition”.

The Minister also noted that the proposed changes should not jeopardise the sustainability of public finances, and stressed the importance of "ensuring equal treatment by supporting the strict implementation of the new framework, as well as ensuring transparency and accountability to enhance national ownership and implementation".

EU Finance Ministers endorsed Finland's updated National Recovery and Resilience Plan and were briefed by the Commission on the current status of the Recovery and Resilience Mechanism.

Reaffirming their support for Ukraine, ministers were briefed by the Commission on the economic and financial implications of the Russian invasion of the country, focusing on aspects of energy-related financial markets.

On Monday, Keravnos attended the Eurogroup meeting where he presented the economic priorities of the new government. The Eurogroup then adopted a statement on the fiscal policy guidelines, exchanged views on inflation and on the strategic policy objectives of a digital euro.

The Eurogroup was also briefed by the European Central Bank and the European Commission on the collapse of Silicon Valley Bank in the United States, receiving assurances that there is no direct exposure to this bank. In this context, the Ministers stressed the need for continuous and close monitoring of developments.