Finance Minister Makis Keravnos has called for greater flexibility in the EU's economic governance framework, arguing that rising inflation and the escalating energy crisis require stronger support measures for households and businesses.
Speaking ahead of Friday's ECOFIN meeting in Luxembourg, Keravnos said there was a "serious need" for action to address mounting economic pressures.
"There is a very serious need for measures, solutions and support for our citizens and businesses," he said.
Push for greater flexibility
Keravnos argued that current fiscal rules do not adequately reflect the realities created by rapidly rising inflation and growing household costs.
He said the European Commission should respond to member states' calls for additional spending flexibility to help address the challenges facing economies across the bloc.
"The needs and expenses of citizens are increasing because of inflation," he said, adding that escalating conflicts and the energy crisis are threatening households, businesses and democratic stability.
Beyond income support
While backing measures to help households cope with rising costs, Keravnos said the EU must also address the structural causes of the energy crisis.
He argued that investment is needed in critical infrastructure to provide a long-term solution rather than relying solely on short-term income support measures.
Support for Greek-Italian initiative
The minister also expressed support for the direction outlined in recent letters sent by Greek Prime Minister Kyriakos Mitsotakis and Italian Prime Minister Giorgia Meloni to European Commission President Ursula von der Leyen, saying Cyprus shares the same objectives.
He noted that proposals focused exclusively on flexibility for defence spending could help some countries immediately but would not be sufficient on their own to tackle the broader energy crisis.
ESMA governance talks continue
Keravnos also welcomed a proposal put forward by the Irish Presidency on the future governance of the European Securities and Markets Authority (ESMA), describing it as a constructive compromise based on an earlier proposal tabled during Cyprus' presidency.
He said discussions remain ongoing, with governance issues still among the main points requiring agreement.
Source: CNA
