Cyprus’ economy has made “incredible progress,” Eurogroup President says

Cyprus’ economy has made “incredible progress” in recent years, Ireland’s Finance Minister and Eurogroup President, Pascal Donohoe, has said after a meeting in Nicosia with his Cypriot counterpart, Makis Keravnos, whom he thanked for his contribution to the work being carried out within the Eurogroup.

Keravnos noted that both the Irish and Cypriot economies were currently considered as “two of the good economies in the European Union”, adding that the two countries would continue their cooperation.

In his statements, Donohoe, who was in Cyprus on an official visit on 15 April, said that it was “a great honour and a great privilege” to visit Cyprus again “and to visit the Ministry of Finance of my great colleague and friend, Minister Makis Keravnos to discuss the great friendship and partnership between Cyprus and Ireland and our shared agenda within the European Union.”

He said that during the meeting, he “recognised the incredible progress that the economy of Cyprus has made in recent years and thanked Makis for his leadership in this progress and for the contribution that he makes to our work within the Eurogroup.”

The change in the public finances of Cyprus, the creation of a budget surplus of such a high level and the progress that has been made in leading a reduction in inflation while maintaining a very high level of employment, “is a great achievement”, he added. “I know at times this has been a very difficult journey and process. And I know this has only been possible due to the hard work of the people of Cyprus, but I also want to acknowledge the leadership of the government and the contribution that they have made to this economic recovery,” he also said.

Referring to the Presidency of the European Union which Cyprus will hold in the first half of 2026, he noted that “this Presidency will be happening at a very important point for the European Union, and I know we will be in a very safe hands under the leadership of Cyprus, but particular projects will be very important for us, that are already recognised by the Ministry of Finance of Cyprus”. Continued focus on the competitiveness of the European Union, continuing to work on delivering the digital euro and then continued focus on the budgets of the European Union are all very important projects that will be continued or concluded under the Cypriot Presidency, Donohoe noted.

He also said they discussed a number of matters that are important to Cyprus and Ireland, such us “our competitiveness, growth in our economies and then how we manage the trade tension that is taking place around the world and on that Cyprus and Ireland have very similar views”.

Donohoe said that he is “always honoured to visit Cyprus to be reminded that even though our two countries are in different parts of Europe, we have so much in common, and due to the hard work of both our people and the work our governments have done, we've made progress, but we're very committed to deliver more”.

Keravnos said that they had “a constructive discussion” on the current issues that concern the EU, and therefore Cyprus and Ireland, such as the current economic developments in the bloc but also globally, with the developments concerning the imposition of tariffs on international trade, which, as he said, “has caused a stir.”

“We exchanged views on the issues of the competitiveness of the European economy and issues that have arisen recently and that we continue to discuss in the various bodies of the European Union, such as the strategic autonomy of the European Union with regard to the issue of defence and the increase in defence spending,” he said. “We have explained many times that Cyprus welcomes the increase in EU spending and its strategic autonomy”, he said, adding that, at the same time these expenses should concern European defence industries only, “and of course, there should be security for all European Union countries.”

Keravnos also said that during the meeting the Cypriot side explained the priorities of the Cyprus Presidency of the Council of the EU, “and we have made a special reference to the digital euro, which is of particular interest to Ireland.”

They also discussed the two countries’ economies, he noted, adding that “both the Irish economy and the Cypriot economy are currently considered two of the good economies of the European Union and we will continue the cooperation” with the Irish Ministry of Finance and Donohoe, with whom, he noted, they have “a good friendship and a very good cooperation.”