Makis Keravnos: The EU should be funding investments in cutting-edge technologies

Finance Minister Makis Keravnos has said that the primary objective should be the funding by the EU of investments in cutting-edge technologies, which will contribute decisively to the achievement of climate neutrality goals, while improving the competitiveness of the European economy.

The Minister was speaking in Budapest where he attended the deliberations of the Eurogroup and the Informal Economic and Financial Affairs Council (ECOFIN) which concluded on 14 September.

A press release by the Ministry of Finance says that Keravnos participated in the works of the Eurogroup, where the Ministers were informed by the European Commission and the European Central Bank about the latest macroeconomic developments in the Eurozone.

According to European institutions, the Ministry says, the eurozone economy, during the second quarter of the year, continued to show a positive growth rate which, however, is still at a low level, while inflation is decreasing, based on the spring forecasts of the European Commission. 

It adds that according to the latest data, the Cypriot economy during the second quarter of the year showed a growth rate of 3.7% of GDP on an annual basis. This rate was the second highest among the eurozone member states and the third highest among the EU member states as a whole, the Ministry states.

The informal ECOFIN meeting began with a working lunch, in which the Finance Ministers exchanged views with IMF Managing Director Kristalina Georgieva, regarding new financing opportunities to support low-income countries to meet today's global challenges, such as dealing with the effects of climate change.

The Cypriot Finance Minister pointed out that the support of countries with low incomes should continue and should be accompanied by the creation of infrastructure of productive units and technical assistance.

Such policies, he continued, will be appropriate, leading to effective reforms, which will also be beneficial to the achievement of the EU's main policies, such as the green transition and addressing migration flows.

In addition, the EU Ministers exchanged views regarding the sustainable financing of the green transition. It was pointed out that in order to achieve the green transition goals, large investments will be needed, and given the budgetary constraints, the simultaneous participation of the private sector is necessary.

In his intervention, Keravnos recognised the importance of private investments to achieve the goals of the green transition, stressing that the planning of public investments should not threaten fiscal stability.

Furthermore, he underlined that for member states with special characteristics like Cyprus, such as the insular character and the distance from the rest of the EU member states, the need for public investments is even greater, exerting increased budgetary pressures.

He also said that proposals such as the "Fit for 55" legislative package do not take into account the particularities of small states and gave as an example the obligation to impose taxes on motor fuels, noting that Cyprus does not have an adequate public transportation network.

The primary objective, he stressed, should be the financing by the EU of investments in cutting-edge technologies, which will contribute decisively to the achievement of climate neutrality goals, while improving the competitiveness of the European economy.

(Source: CNA)