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Cyprus Prioritises Single Market Reform During EU Presidency Agenda

A Vision For A Stronger Single Market

Speaking at the “Shaping Europe’s Growth and Competitiveness” conference in Nicosia, Michalis Damianou outlined Cyprus’ commitment to strengthening the European Single Market as part of the country’s EU Presidency priorities. Amid growing geopolitical uncertainty, technological disruption and energy challenges, Damianou said Europe must move faster in coordinating reforms that reinforce competitiveness and economic resilience across the bloc.

Capitalising On Europe’s Competitive Advantages

Damianou argued that Europe continues benefiting from major structural strengths, including the world’s largest integrated market, advanced research capabilities and a highly skilled workforce. According to the minister, the focus has now shifted from discussing Europe’s potential to accelerating its ability to compete globally through targeted reforms, stronger coordination and more effective regulation.

Legislative Reforms And Regulatory Modernisation

Reducing administrative burdens for businesses, particularly SMEs and scaling companies, remains a central part of Cyprus’ agenda. Damianou referenced initiatives including the European Commission’s “Terrible Ten” proposals and the planned “28th Regime,” both aimed at simplifying cross-border business activity and reducing regulatory fragmentation within the EU market. He stressed that the objective is not deregulation, but smarter regulation capable of supporting innovation while limiting unnecessary bureaucracy.

Driving Investment And Industrial Competitiveness

The minister also highlighted broader European efforts aimed at strengthening industrial competitiveness and accelerating investment. Proposals, including the European Competitiveness Fund and the European Industrial Accelerator, are expected to simplify access to funding, reduce delays and support decarbonisation across energy-intensive sectors. Damianou additionally linked energy policy directly to Europe’s economic security, arguing that affordable and sustainable energy remains critical for maintaining industrial competitiveness globally.

Cyprus As A Regional Bridge

Cyprus’ geographic position between Europe, the Middle East and Asia also places the country in a strategic role for regional cooperation and market connectivity. During his remarks, Damianou described Cyprus as a bridge for innovation, investment and collaboration, while reaffirming support for reforms intended to strengthen Europe’s long-term resilience, competitiveness and strategic autonomy.

A Broader Call For European Competitiveness

Closing his address, the minister said competitiveness extends beyond economic performance and remains closely tied to Europe’s long-term stability and quality of life. He called for greater speed, ambition and unity across the EU as member states continue responding to an increasingly competitive global environment.

Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.

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