Ukraine must remain a top priority, FinMin tells Ecofin

Cyprus agrees that support to Ukraine must remain a top priority in finance ministers, especially as Cyprus is also a victim of invasion and occupation, the Minister of Finance Makis Keravnos has said.

He was speaking in Brussels on 16 July during the Economic and Financial Affairs Council of the EU (Ecofin). On 15 July, Keravnos took part in a meeting of the Eurogroup.

On 16 July, the Council also approved amendments to the national recovery and resilience plan of Cyprus, as well as to the national plans of Greece, Germany, Poland and Finland. Ministers also discussed the implementation of the Recovery and Resilience Mechanism and were briefed by the European Commission.

The Council also endorsed the country-specific recommendations for the coordination of member states' economic policies which were recently published in the context of the European Semester, as well as Council conclusions on the 2024 in-depth reviews under the macroeconomic imbalances procedure.

During Ecofin, the Hungarian Presidency of the Council of the EU briefed ministers on its economic and financial priorities until December 2024, which include the implementation of the new economic governance framework, the promotion of measures to enhance competitiveness and deepening the Capital Markets Union, and the completion of the Banking Union.

In his remarks, Keravnos reiterated his counterparts' position that support to Ukraine needs to continue being a key priority as long as Russia's aggression continues. The Finance Minister added in particular that Cyprus supports assistance to Ukraine as it too is a victim of an illegal invasion and continued occupation for 50 years. He welcomed the priorities of the Hungarian Presidency and assured that Cyprus will cooperate in a constructive way.

The Council also endorsed the EU's mandate ahead of the meeting of finance ministers and central bank governors of the G20 on 25 and 26 July.

On 15 July, according to the PIO, Keravnos participated in a meeting of the Eurogroup, during which a joint communiqué on the fiscal policy guidelines for 2025 was adopted.

Ministers agreed that in 2025, euro area Member States should undertake a gradual and sustainable consolidation of their public finances, given the need to reduce the high level of budget deficits and public debt. They also stressed the need for a swift and consistent implementation of the new economic governance framework, the effective implementation of which is expected to lead to a restrictive fiscal policy for the euro area as a whole by 2025.

Speaking during the Eurogroup, Keravnos said that fiscal policy should be prudent, taking into account the current economic situation, the budgetary positions of Member States and the risks that the euro area continues to face.

At the same time, he stressed the importance of not jeopardising the growth prospects of member states, noting the need to maintain a sufficient level of investment. He also expressed his concern about how to promote investment at EU level after the end of the Recovery and Resilience Mechanism in 2026.

Keravnos underlined that particular emphasis should be given on implementing structural reforms and investments amidst the effort to improve the competitiveness of the eurozone. He agreed that the new economic governance framework is appropriate for achieving the fiscal policy objectives for 2025, stressing the importance of the effective and consistent implementation of the new framework.

(Source: CNA)