Finance Minister calls for US-EU dialogue on tariffs to avert global risks

Finance Minister Makis Keravnos expressed strong support for dialogue with the United States aimed at de-escalating trade tensions and reaching a mutually beneficial agreement, during his participation in the Eurogroup and informal Ecofin meetings held in Warsaw on 11–12 April.

Keravnos warned that the ongoing "tariff war" could pose a serious threat, potentially even triggering a global recession.

According to a press release from the Ministry of Finance, released on Saturday, the meetings focused on the evolving global economic landscape, particularly in response to recent announcements by the US President on the imposition of universal tariffs on imports.

Most EU member - states welcomed the European Commission's decision to freeze countermeasures for 90 days and prioritize diplomatic dialogue with the US as a way of reducing tensions. Ministers also stressed the importance of advancing policies that would boost the EU’s economic competitiveness.

Keravnos described the situation as extremely dangerous, noting that trade instability and the ongoing "tariff war" could potentially lead to a global recession. In this context, he supported dialogue with the United States as a primary objective. He further noted that any response from the EU should be carefully planned, safeguard economic stability and growth, and consider potential inflationary implications.

Keravnos also stressed the need for simplifying the EU’s regulatory framework to enhance competitiveness, noting the importance of EU unity when responding to US trade policies.

In Saturday’s session, EU Finance Ministers discussed ways to enhance Europe’s defence capabilities and potential funding mechanisms, based on a working paper by the Bruegel think tank.

Keravnos emphasized Cyprus’ strong support for improving the EU’s defence capabilities, particularly as a member state with part of its territory under occupation. He also stressed the need to primarily support European equipment manufacturing industries, so that through the development of expertise, the EU can achieve full strategic autonomy.

(Source: CNA)