Cyprus expects constructive approach from Turkey, FinMin says

Minister of Finance Makis Keravnos underlined the importance of regional partners aligning with European standards and European values in the context of economic cooperation, during his participation in the annual Economic and Financial Dialogue with regional partners which was held in Brussels, and attended also by a Turkish representative.

According to a press release on Keravnos' participation in the Economic and Financial Affairs Council (ECOFIN) of the EU, on 13 May, the Finance Minister commented on an intervention of the Turkish representative and pointed out that Cyprus took a positive stance for the promotion of EU - Turkey relations and therefore "decided to lift its objections to Turkey - EU economic dialogue", referring to the EU - Turkey High Level Economic Dialogue which was held at the beginning of April.

"Therefore, Turkey is also expected to show a constructive attitude on all issues, including the Cyprus problem resolution process, within the framework of the UN resolutions, as agreed by the April 2024 European Council," he added, according to the press release, which did not include Turkey's intervention.

Keravnos participated in the annual Economic and Financial Dialogue with EU Regional Partners, namely the EU's Western Balkan partners, Turkey, Moldova and Ukraine, representing Cyprus as the next country to hold the Presidency of the Council of the EU (first half of 2026), along with the current Polish Presidency, the next Danish Presidency (second half of 2026), the Commission and the European Central Bank.

During the meeting, the Finance Minister underlined the importance of strengthening cooperation at the regional level, especially in the current geopolitical context, and said it was "crucial to align regional partners with European standards and values, especially in EU priority areas, which will allow further deepening of economic cooperation".

In the context of Tuesday's ECOFIN meeting, EU finance ministers discussed the Commission's proposal to create an EU facility to enhance its defence capabilities (SAFE) to promote investment in European industry. In his intervention, Keravnos stressed the importance of strengthening the EU's defence and technology base, especially in the light of the current geopolitical environment.

He also underlined that funding should be focused on European defence industries, while he made clear that the participation of third countries should only be allowed subject to respect for the territorial integrity of all EU Member States and international law. In this context, he pointed out that the participation of a third country that still occupies European territory in particular in Cyprus, will not be accepted.

The Ministers also exchanged views on the Commission's strategy for deepening the Savings and Investment Union, with a view to increasing financial opportunities and strengthening the EU's competitiveness.

The Finance Minister welcomed the emphasis that the proposal gives on increasing the participation of private investors, but also the focus on increasing the financing options for SMEs and start-ups. He also underlined the added value of strengthening financial literacy and digital access to simple and safe products.

Ministers were also updated on the progress in the implementation of the Recovery and Resilience Mechanism and approved the amended National Recovery and Resilience Plans of the Netherlands, Slovakia, Spain and Portugal. ECOFIN members also reached a political agreement on the directive on VAT rules for distance sales of imported goods, and were briefed on the outcome of the meeting of G20 Finance Ministers and Central Bank Governors.

(Source: CNA)