Finance Ministry pleased with findings of European Semester Spring Package on Cyprus

The Ministry of Finance has, in a press release, expressed satisfaction regarding the findings on the Cypriot economy included in the Spring Package of the European Semester 2025, noting that they clearly confirm the steady progress, resilience, and momentum of the Cypriot economy.

At the same time, the Ministry reassured that it will continue to implement the government’s economic policy aimed at accelerating reforms and building a modern, competitive, and resilient economy that creates opportunities and prospects for all citizens.

The European Commission presented the Spring Package on Wednesday, as part of the European Semester 2025. "We welcome the fact that efforts made by Cyprus to reduce macroeconomic imbalances have been acknowledged, as the Commission, in its assessment, has removed Cyprus from the category of 'countries with macroeconomic imbalances' and classified it among the 'countries with zero imbalances'" the press release noted.

Indicatively, it said that “imbalances related to external and private debt have subsided,” with the Commission stating that the Republic of Cyprus has taken sufficient measures, the press release added.

Furthermore, according to the Commission, public debt remains steadily on a downward trajectory due to ongoing fiscal surpluses, it noted.

The European Commission also said that, despite the fragile international economic environment, economic growth remains strong, with the government’s efforts to diversify the economy yielding tangible results. Cyprus also shows significant improvement in most UN sustainable development indicators, the press release read. 

The Ministry said that it took note that the European Commission has drawn attention to the increase in spending for 2025, as, according to its projections, the rate of expenditure growth compared to 2024 may exceed the agreed-upon limit.

“The Ministry of Finance, remaining committed to its policy of fiscal discipline and taking into account the European Commission’s reports regarding the rate of increase in public expenditures, will continue and intensify efforts to rationalize public spending,” the press release said.

In addition, the Ministry of Finance, taking all of the European Commission’s recommendations seriously into account, assured that “it will continue diligently with the government’s economic policy to accelerate reforms and build a modern, competitive, and resilient economy that creates opportunities and prospects for all citizens."

(Source: CNA)