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.