Cyprus Finance Minister Makis Keravnos has called on Europe to rethink its economic strategy amid geopolitical uncertainty, technological change and rising living costs, warning that assumptions from 10 or 20 years ago no longer reflect today’s realities.
Speaking at the Limassol Economic Forum 2026, Keravnos said rapid global changes are making future developments increasingly difficult to predict.
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A World In Flux
Keravnos cited regional conflicts, climate change and the energy crisis as drivers of global volatility, warning that established economic and political assumptions are being challenged.
He also highlighted how artificial intelligence is reshaping productivity, employment and economic models, while inflation continues to pressure households and businesses.
Europe must remain globally competitive while preserving social cohesion, he said. “No country can face these challenges alone,” Keravnos added, stressing the EU’s importance as both an economic bloc and a community built on shared values.
Resilience As A Competitive Advantage
The minister called for Europe to reduce excessive dependence on external actors while balancing competitiveness with openness. He said Cyprus has strengthened its economic credibility through prudent fiscal policy, debt reduction and structural reforms.
Artificial intelligence is central to future productivity, Keravnos said. “Artificial intelligence is no longer optional,” he noted, calling for greater investment in skills, research and technology.
He also urged Europe to make better use of its universities and accumulated knowledge, strengthen workforce training and reduce bureaucracy, warning that excessive administrative burdens could hinder adaptation.
Cyprus Seeks A Larger European Role
Keravnos said Cyprus contributes to shaping European solutions despite its small size, highlighting the country’s role during its presidency of the Council of the European Union.
Its geographic position also offers an opportunity to strengthen ties between Europe and the Middle East. Energy security, resilient supply chains, the green transition and cross-border infrastructure remain key priorities, he said, adding that Cyprus is working to support cooperation in these areas.
Adaptation Without Sacrificing Prosperity
Keravnos called for a long-term European strategy that strengthens competitiveness without widening inequality. Europe has the resources to overcome current challenges, he said, but must adapt its policies to changing global realities.
The priority is to combine a consistent strategic direction with the flexibility to respond to immediate economic and geopolitical pressures while safeguarding long-term prosperity and economic stability.







