Progress on energy tax negotiations provides balance says Finance Minister at Ecofin

The current progress in the negotiations for the revision of the Energy Taxation Directive, under the Hungarian Presidency, provides an appropriate balance between ambition to tackle climate change and recognising the specific characteristics of Member States, including Cyprus, Finance Minister Makis Keravnos has said.

He was speaking at the European Union's Economic and Financial Affairs Council (Ecofin) on 10 December.

In his intervention, Keravnos also said that the Presidency's approach of maintaining the existing provisions of the Directive, which exclude the aviation and shipping sectors from taxation with the introduction of a provision for a review in 2035, allows for the necessary flexibility and addresses Cyprus' long-standing concerns.

According to a statement issued by the Ministry of Finance, during the Ecofin meeting, which concluded on 10 December, Ministers were also informed about the progress in the negotiations on the reform of the customs union, as well as the progress in the implementation of the Recovery and Resilience Mechanism, and approved the amended Recovery and Resilience Plans of Sweden, Slovenia, Denmark and Belgium.

The 27 member states also exchanged views on the consequences of the Russian invasion of Ukraine, and were updated on the latest developments regarding the launch of bilateral loans from G7 countries to Ukraine. Also, according to the Ministry of Finance, the President of the European Court of Auditors presented the report on the implementation of the European Union Budget for 2023.

On 9 December, Keravnos participated in the Eurogroup, which, in an inclusive composition, exchanged views with the UK Chancellor of the Exchequer on global economic challenges.  

The Ministry notes that Cyprus welcomes the dialogue initiative with the UK, as it considers that the EU and the UK share common principles and values, while facing common challenges in the current political and economic environment.

It further states that Cyprus supports the need to safeguard free trade and avoid unfair trade practices on the basis of the principles and rules of the World Trade Organisation.

According to the Ministry of Finance, Eurozone Finance Ministers adopted a joint statement on Eurozone fiscal policy in 2025, which is expected to be slightly restrictive.

"In this context, the need for a rigorous implementation of the new EU economic governance framework was particularly emphasised to ensure both fiscal stability and the continued financing of high value-adding investments," it added. 

(Source: CNA)