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Ukraine Must Remain A Top Priority, Cyprus Finance Minister Tells Ecofin

by THEFUTURE.TEAM

July 17, 2024

In a recent address to the Economic and Financial Affairs Council of the European Union (Ecofin), Cyprus’s Finance Minister Makis Keravnos emphasised the critical importance of maintaining robust support for Ukraine amidst ongoing Russian aggression. Speaking in Brussels on 16 July 2024, Keravnos underscored Cyprus’s unique perspective as a nation enduring prolonged occupation, drawing parallels to Ukraine’s plight.

Cyprus’s Endorsement of Continued Support

Keravnos reiterated the necessity for the European Union to prioritise assistance to Ukraine, a stance shared by his counterparts. This unwavering support is vital for countering the persistent threats posed by Russia and ensuring Ukraine’s resilience and stability.

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Hungarian Presidency’s Economic Priorities

The meeting also featured discussions led by the Hungarian Presidency, which outlined its economic and financial objectives until December 2024. These priorities include implementing a new economic governance framework, enhancing competitiveness, and advancing both the Capital Markets Union and the Banking Union. Keravnos expressed Cyprus’s commitment to cooperating constructively with these initiatives.

Recovery and Resilience Mechanism

A significant portion of the meeting was dedicated to approving amendments to the national recovery and resilience plans of several member states, including Cyprus. These modifications are essential for the continued implementation of the Recovery and Resilience Mechanism, a critical component of the EU’s strategy to bolster economic recovery post-pandemic.

Fiscal Policy and Economic Governance

During the Eurogroup meeting on 15 July, Keravnos and his colleagues adopted a joint communiqué on fiscal policy guidelines for 2025. The guidelines emphasise the need for a gradual and sustainable consolidation of public finances, highlighting the importance of reducing budget deficits and public debt. Keravnos stressed the need for prudent fiscal policies that consider current economic conditions and maintain investment levels to safeguard growth prospects.

Structural Reforms and Investment

Keravnos highlighted the importance of structural reforms and investments to improve the eurozone’s competitiveness. He acknowledged the new economic governance framework’s potential in achieving fiscal objectives by 2025, while also expressing concerns about maintaining investment levels after the Recovery and Resilience Mechanism ends in 2026.

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Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

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A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.