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Cyprus Finance Minister Calls For New European Economic Strategy Amid Global Uncertainty

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.

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.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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