Cyprus Finance Minister Makis Keravnos has called for a broader European response to the energy crisis, stressing the need for long-term investment in energy infrastructure alongside short-term household support. He also expressed hope that EU member states would reach an agreement on the future governance of the European Securities and Markets Authority (ESMA).

Energy Crisis Requires Long-Term Investment

Referring to Greece’s August proposal to allow greater fiscal flexibility beyond defence spending, Keravnos said the initiative could help some countries in the short term but would not be enough to address the energy crisis meaningfully.

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Acknowledging differences in how member states approach fiscal flexibility, he emphasised the structural nature of the energy problem. Keravnos argued that the European Commission should look beyond immediate income support for households and consider financing energy infrastructure, which he described as essential to a lasting solution.

ESMA Governance Remains The Main Outstanding Issue

Responding to a KYPE question about whether a qualified majority could be reached on ESMA’s future governance under the single market supervision framework, Keravnos backed the proposal put forward by the Irish Presidency.

He said the proposal builds on work carried out during the Cypriot Presidency and represents a compromise that could help bridge differences between member states.

Describing Thursday’s post-Eurogroup dinner discussions as positive, Keravnos acknowledged that some issues remain unresolved, particularly ESMA governance. However, he expressed hope that the matter could be settled at Friday’s meeting.

Regarding the exemptions included in the Irish Presidency’s proposal, Keravnos noted that most member states had accepted the arrangement. As a result, he said, ESMA governance remains the main issue requiring agreement.