Cost of compliance reports too high for business, Keravnos tells ECOFIN

Finance Minister Makis Keravnos said that the cost of compliance reports with EU regulations is very high, speaking during the meeting of the Economic and Financial Affairs Council (ECOFIN) in Brussels.

Speaking at the 11 March meeting, he also underlined that the reduction of administrative burdens will be one of the main initiatives of the Cypriot Presidency of the Council of the EU (first half of 2026).

According to a press release, the Finance Ministers of the EU exchanged views during on the simplification of procedures, and the reduction of bureaucracy and compliance requirements foreseen by the EU legislative framework, on the basis of the relevant proposals of the Commission through the Omnibus legislative package.

The Commission proposes, inter alia, that the obligation to submit compliance reports should be focused on large companies, while reducing the frequency of submission.

In his intervention, Keravnos stressed the importance of reducing bureaucracy and administrative burdens, especially for small and medium-sized enterprises, but also to improve the competitiveness of the European economy in general.

Describing the cost of preparing compliance reports as too high, the Finance Minister noted that the proposed streamlining is moving in the right direction, as it is expected to free up significant resources for SMEs. He also stressed that simplifying and reducing the administrative burden will be a key priority of the Cyprus Presidency.

Cyprus will assume the six-month Presidency of the Council of the EU in January 2026, as part of the ongoing trio of Presidencies with Poland (current Presidency) and Denmark (second half of 2025).

During the ECOFIN, ministers also exchanged views on the consequences of the Russian invasion of Ukraine, with an emphasis on the effective implementation of sanctions from the perspective of customs authorities. They were also updated on progress in the implementation of the Recovery and Resilience Mechanism and approved the amended National Recovery and Resilience Plans of Ireland and Belgium, and reached political agreement on the Directive on Administrative Cooperation in Taxation (DAC9).

On Monday evening, EU finance ministers discussed at an informal working dinner hosted by the Polish Presidency of the Council the options for financing the increased defence needs arising from political and geopolitical developments.

In his intervention, the Cypriot Finance Minister noted that the country supports efforts to channel resources to enhance European defence security, given that the sustainability of public finances is ensured. He also stressed the need for all Member States to benefit from the strengthening of the European defence industry and advocated the channelling of investment in armaments to European defence companies.

On Monday, the Minister also participated in the Macroeconomic Dialogue, which brings together the Council of the EU (represented by the current and the next two Presidencies) and the Commission, as well as representatives of European confederations of social partners (workers and employers).

The participants discussed current economic developments, and the obstacles to the completion of the single market in services. Keravnos stressed the importance of enhancing the competitiveness of the European economy, especially in the current geopolitical context, and added that the reduction of bureaucracy and administrative burdens for the benefit of businesses and workers was crucial.

In the margins of the Council, the Finance Minister also held a bilateral meeting on Monday with his German counterpart, Jörg Kukies.

(Source: CNA)