In his capacity as President of the Economic and Financial Affairs Council (ECOFIN), the Minister of Finance, Makis Keravnos, presented on Wednesday the priorities of the Cyprus Presidency to the Economic Committee (ECON) of the European Parliament. At a time of geopolitical instability and weakened multilateralism, Mr. Keravnos said that “Europe must strengthen its economic foundations to turn challenges into opportunities.”
“Cyprus assumed the Presidency of the EU for the second time at a critical moment, where the world is changing rapidly and multilateral cooperation is being tested,” he said. Although the European economy has shown resilience in a difficult external environment, “Europe needs to strengthen its economic fundamentals to cope with prolonged uncertainty,” he added.
The Minister highlighted as the main priorities of the Cyprus Presidency “the strengthening of the economic autonomy of the EU and the strengthening of its global economic position”.
“We will prioritize policies that strengthen the resilience of the European economy, advance the simplification agenda and strengthen the Union’s strategic autonomy,” he explained. “A stronger and more autonomous Europe will be better prepared to turn challenges into opportunities,” he added.
Mr. Keravnos thanked the ECON Committee for the rapid processing of the proposal to provide 90 billion euros to Ukraine. “The Presidency will work decisively to ensure that EU support to Ukraine – including financial aid – remains unchanged,” he said, noting that “legislative texts amending the Ukraine Support Facility and the Support Loan were signed yesterday by the European Parliament and the Council.”
Regarding the amendment of the Multiannual Financial Framework (MFF), Mr. Keravnos stated that “we are working intensively to ensure the necessary unanimity in the Council”. In the area of economic policy, the Cypriot presidency is committed to promoting the “Tax Consistency Package” – the simplification package under the new economic governance. “At the end of last year, the Council approved its negotiating mandate for co-decision texts, and we will soon seek your approval for the relevant Council regulation,” he said.
In addition, he said, the Presidency is ready to start negotiations on the “Omnibus IV” proposal, which aims at further regulatory simplification for small and medium-sized enterprises. “Due to the horizontal nature and importance of these texts, rapid progress is essential for EU competitiveness,” it said.
In the field of financial services, he said that the Presidency gives priority to the start of negotiations on the “Single Currency Package”. “A retail digital euro – both online and offline – is essential as an anchor for our monetary sovereignty and strategic autonomy,” noted Mr. Keravnos. “The digital euro will also strengthen the competitiveness of the EU by contributing to a secure, sovereign and efficient pan-European payment system. We stand by your support for the completion of this project,” he added.
The Minister also referred to the “Savings and Investments Union”, a project that EU leaders have highlighted as urgent. “We expect results by the end of the year, and our work program is aligned with that ambition,” he said. The presidency, he continued, is ready to start negotiations on the securitized claims framework, with the aim of developing the market while ensuring investor protection and financial stability.
Another critical element is the ‘Market Integration and Supervision Package’ (MIP), which aims to reduce the regulatory and supervisory barriers that continue to fragment European capital markets. “Consideration of these proposals is still at an early stage, but we are determined to achieve rapid progress during our presidency,” he said.
The Minister also referred to the role of the financial sector in supporting the green transition. “Clear and effective regulation is essential to strengthen European competitiveness by reducing compliance costs,” he stressed, adding that “our aim is to secure a negotiated Council mandate on the Sustainable Investment Transparency Regulation (SFDR) by the end of our term.”
The revision of the Regulation on the Pan-European Personal Pension Product (PEPP) and the Directive on Institutions for Occupational Pensions (IORP) is also a priority. “It is essential to reinvigorate the take-up of PEPP, making it more flexible, cost-effective and attractive to both providers and savers,” it said. For IORPs, the goal is to ensure adequate retirement income in a sustainable and inclusive manner.
Finally, Mr. Keravnos referred to the importance of compliance with the new framework for the fight against economic and financial crime, in particular with the “EU Anti-Money Laundering Package”. “This must be accompanied by enhanced cooperation between Member States, EU agencies and the private sector,” he concluded.
In the area of taxation, Mr Keravnos welcomed the agreement reached within the OECD Inclusion Framework in January 2026 on a “parallel application” system. “This allows the 15% Pillar Two minimum tax rules to coexist with the United States alternative minimum tax rules,” he explained. The Cyprus Presidency will continue to facilitate coordination at EU level to ensure coherence and avoid unnecessary duplication.
For the revision of the Tobacco Taxation Directive, the Presidency has set an ambitious timetable. “Modernizing the EU’s tobacco tax regime is important to better align it with public health objectives and internal market principles,” it said.
Under the Carbon Border Adjustment Mechanism (CBAM), the Cyprus Presidency prioritizes targeted amendments to avoid circumvention, simplify procedures and implement corrections after the pilot phase. “This proposal is essential to avoid carbon leakage, while supporting the EU’s goal of climate neutrality by 2050,” he said.
“The Cypriot Presidency is committed to playing its full role in strengthening Europe’s long-term competitiveness, productivity and sustainable, inclusive growth. I look forward to the continuation of our dialogue and close cooperation throughout our presidency”, he concluded.
Source: KYPE