A stronger and more autonomous Europe is essential for transforming today’s challenges into future opportunities, Finance Minister Makis Keravnos told the European Parliament’s Economic and Monetary Affairs Committee on Wednesday, speaking in his capacity as President of the Economic and Financial Affairs Council (ECOFIN). Presenting the priorities of the Cypriot Presidency, he stressed that Europe must reinforce its economic foundations at a time of geopolitical instability and weakening multilateralism.
Keravnos noted that Cyprus assumes the EU Presidency for the second time at a critical moment, with global shifts occurring rapidly and multilateral cooperation under strain. Although the European economy has shown resilience in a difficult external environment, he said Europe must strengthen its core economic principles to navigate prolonged uncertainty.
He identified the strengthening of the EU’s economic autonomy and the enhancement of its global economic position as the main priorities of the Cypriot Presidency. Policies that reinforce economic resilience, advance the simplification agenda and support the Union’s strategic autonomy will be prioritised. A stronger and more autonomous Europe, he said, will be better prepared to turn challenges into opportunities.
Keravnos thanked the ECON Committee for its swift processing of the proposal to provide 90 billion euros to Ukraine. He emphasised that the Presidency will work decisively to ensure that EU support for Ukraine, including financial assistance, remains unwavering. He noted that the legislative texts amending the Ukraine Support Mechanism and the Support Loan were signed on Tuesday by both the European Parliament and the Council.
On the revision of the Multiannual Financial Framework, Keravnos said intensive efforts are under way to secure the necessary unanimity in the Council. In the area of economic policy, the Cypriot Presidency is committed to advancing the Taxation Consistency Package, which forms part of the simplification agenda under the new economic governance framework. The Council adopted its negotiating mandate for the co‑decision texts at the end of last year, and the Presidency will soon request parliamentary approval for the related Council regulation.
He added that the Presidency is ready to begin negotiations on the Omnibus IV proposal, which aims to further simplify regulation for small and medium‑sized enterprises. Given the horizontal nature and importance of these texts, rapid progress is essential for EU competitiveness.
In the field of financial services, the Presidency is prioritising the start of negotiations on the Single Currency Package. Keravnos said that a retail digital euro, available both online and offline, is necessary as an anchor for monetary sovereignty and strategic autonomy. A digital euro will also strengthen EU competitiveness by contributing to a secure, sovereign and efficient pan‑European payments system.
He also referred to the Savings and Investment Union, a project EU leaders have described as urgent. Results are expected by the end of the year, and the Presidency’s work programme is aligned with this ambition. The Presidency is ready to begin negotiations on the securitisation framework, aiming to develop the market while ensuring investor protection and financial stability.
Another key element is the Market Integration and Supervision Package, which seeks to reduce regulatory and supervisory barriers that continue to fragment European capital markets. Although examination of these proposals is still at an early stage, the Presidency is determined to achieve swift progress.
Keravnos highlighted the role of the financial sector in supporting the green transition. Clear and effective regulation is essential for strengthening European competitiveness by reducing compliance costs. The Presidency aims to secure a Council negotiating mandate on the Sustainable Finance Disclosure Regulation by the end of its term.
The review of the Pan‑European Personal Pension Product Regulation and the Directive on Institutions for Occupational Retirement Provision is also a priority. Revitalising the uptake of the PEPP by making it more flexible, cost‑effective and attractive for both providers and savers is essential. For IORP, the goal is to ensure adequate pension income in a sustainable and inclusive manner.
Keravnos also underlined the importance of compliance with the new framework for combating economic and financial crime, particularly the EU Anti‑Money Laundering Package. This must be accompanied by enhanced cooperation between member states, EU bodies and the private sector.
In the area of taxation, he welcomed the agreement reached in January 2026 within the OECD Inclusive Framework on a system of parallel application. This allows the 15 per cent minimum tax rules under Pillar Two to coexist with the United States’ alternative minimum tax rules. The Cypriot Presidency will continue to facilitate coordination at EU level to ensure coherence and avoid unnecessary double reporting.
On the revision of the Tobacco Tax Directive, the Presidency has set an ambitious timeline. Modernising the EU’s tobacco taxation regime is important to better align it with public health objectives and the principles of the internal market.
Regarding the Carbon Border Adjustment Mechanism, the Presidency is prioritising targeted amendments to prevent circumvention, simplify procedures and introduce corrections following the pilot phase. This proposal is essential for preventing carbon leakage while supporting the EU’s goal of climate neutrality by 2050.
Keravnos concluded by reaffirming the commitment of the Cypriot Presidency to strengthening Europe’s long‑term competitiveness, productivity and sustainable, inclusive growth. He expressed his expectation for continued dialogue and close cooperation throughout the Presidency’s term.
Source: CNA