Keravnos discussed support for Ukraine and the Capital Markets Union in Brussels

Cyprus "supports efforts to relieve the people of Ukraine" as the country faces military invasion by a third country, something Cyprus is particularly sensitive to, Finance Minister Makis Keravnos said after the Economic and Financial Affairs Council of the EU (Ecofin) which was held on 14 May.

In his remarks, Keravnos also referred to the discussion on the issue of the Capital Markets Union which took place on 13 May during the meeting of the Eurogroup.

Keravnos also said that, "We discussed issues related to the competitiveness of the European economy and we have identified the need for additional investment in innovation, digital transition and human resources".

In the 14 May meeting, the 27 Finance Ministers of the EU endorsed Ukraine's National Reconstruction Plan in the presence via videoconference of the country's Finance Minister, Serhiy Marchenko. The adoption of the plan paves the way for the disbursement of regular payments by the EU under the Facility for Ukraine, which includes up to €50 billion in loans and financing for the country until 2027.

In his remarks after the meeting, Keravnos said that the member states confirmed their support to Ukraine, which "is being subjected to a military invasion by a third country". He added that "Cyprus supports the efforts for the relief of the people of Ukraine" who "are bearing the burden of this invasion, for which we as Cyprus are particularly sensitive", as "we too are the victim of an invasion and military occupation by a third country".

Referring to the discussions held on 13 May during the Eurogroup meeting, Keravnos said that the ministers discussed economic and fiscal developments, noting that "That there is greater optimism despite the fact that there is a lot of uncertainty due to geopolitical developments."

According to a statement released by the PIO, during the Eurogroup on 13 May the European Commission presented its predictions on the basis of the Spring Economic Forecast, according to which economic growth is expected to accelerate further in 2024, with inflation returning to the 2% target in 2025, but with risks based on geopolitical developments remaining.

Capital Markets Union

The Eurogroup also discussed the issue of capital market integration, Keravnos noted in his statements, stressing that this is "an issue that Cyprus supports and an issue that will release funds that will be promoted to growth for the benefit of the member states' economies".

According to the press release by the PIO, the Finance Ministers of the 27 Member States discussed the next steps for deepening the Capital Markets Union, exchanging views on the national measures being implemented, and adopted a roadmap for discussions in the coming period, based on the leaders' mandate to intensify work.

In his intervention, Keravnos noted that Cyprus continues to support all efforts that will contribute to the development of our competitive capital market that ensures financial stability and resilience.

In this context, he reiterated support for taking forward the targeted measures as agreed in the March 2024 Eurogroup Statement, following an impact analysis by the EU, including the issue of the integration of capital markets supervision within the EU.

Keravnos also briefly referred to the national initiatives implemented by Cyprus to promote the deepening of the Capital Markets Union, with emphasis on the implementation of the national strategy for improving financial literacy. Finally, views were exchanged on the ways in which investment in research, innovation and human capital can improve the competitiveness of the EU economy.

(Source: CNA)