EU should stay focused on issues of concern amid rapid world developments, says Keravnos

The EU should "stay focused on the key issues of concern," Finance Minister Makis Keravnos said after the conclusion of the Economic and Financial Affairs Council of the EU (ECOFIN), held in Brussels.

Commenting on discussions on the EU's role regarding Ukraine, Keravnos on 18 February confined himself to saying that at this juncture, conversations in the Eurogroup and in ECOFIN “are taking place in the context of an environment that is constantly moving".

"Developments are rapid and many of these developments also raise serious concerns," he added, referring later in his statement to the need for dialogue with the US.

"The European Union should stay focused on the key issues of concern, such as competitiveness, deepening the integration of capital markets and the banking system, improving productivity and reducing bureaucracy so that we become even more competitive," he continued.

He added that "at the same time, on the basis of a coherent strategy, there should be a dialogue with those necessary, at this time also with the United States of America, to address potential challenges".

"We, as Cyprus, support a coherent strategy for the growth and competitiveness of the European economy, putting an emphasis, as a small country, on reducing bureaucracy and excessive administrative costs," he concluded.

According to a press release by the Ministry of Finance, relayed by the PIO, during the Council, the ministers exchanged views on the simplification and improvement of the business environment in Europe, based on the recent Competitiveness Compass.

They also exchanged views in relation to the consequences of the Russian invasion of Ukraine, especially when it comes to the effective implementation of sanctions.

During his intervention, Keravnos underlined the need to tackle long-standing obstacles and bureaucracy in order to help small and medium-sized enterprises, and to create a growth-friendly environment.

The Finance Minister said he was positive about the involvement of the European Investment Bank to improve access to finance, while noting the need to make progress in both the Capital Markets Union and the Banking Union.

The Minister also welcomed the intention to create a Competitiveness Fund under the next Multiannual Financial Framework of the EU, while underlining the need to ensure that funding is directed to all Member States. He noted that in the context of the Cyprus Presidency of the Council of the EU (first half of 2026), Cyprus will work constructively to simplify and reduce administrative burdens.

The Ministers were briefed on the progress in the implementation of the Recovery and Resilience Mechanism, and approved the amended National Recovery and Resilience Plans of Latvia and Belgium.

In parallel, Ecofin adopted conclusions on macroeconomic imbalances as well as euro area economic policy recommendations in the context of the European Semester. The Council also approved guidelines for the preparation of the European budget for 2026.

On 17 February, Keravnos participated in a meeting of the Eurogroup, which focused on the macroeconomic outlook and challenges of the Eurozone in the light of global geopolitical developments.

In the margins of ECOFIN meeting, Keravnos also met with the Commissioner for Fisheries and Oceans, Costas Kadis, to whom he expressed his congratulations on his assumption of his portfolio.

(Source: CNA)