Finance Minister attends ECOFIN and Eurogroup meetings on spring forecasts

The Minister of Finance Makis Keravnos participated in the work of the Economic and Financial Affairs Council (ECOFIN), which ended on Tuesday afternoon in Brussels.

According to an announcement by the Ministry of Finance, the European Commission’s spring forecasts were at the centre of the Council’s work, which briefed the Ministers accordingly.

According to the Commission’s forecasts, the economic growth rate of the Cypriot economy for 2023 and 2024 is estimated at 2.3 per cent and 2.7 per cent respectively, compared to 1.6 per cent for 2023 and 2.1 per cent for 2024 which the Commission predicted in its winter interim forecasts.

As part of the Council’s work, the European Commission also presented its legislative proposals on the review and further strengthening of the EU bank crisis management and deposit insurance (CMDI) framework, with a focus on medium and smaller banks.

Ministers had a first opportunity to express their initial positions on the proposal, before it was submitted for technical processing to the relevant Council working group.

Cyprus has welcomed the Commission’s proposed legislative changes, with Finance Minister Makis Keravnos expressing the view that a stronger crisis management framework can improve cost-effectiveness, support the real economy, protect depositors and provide stronger protection of public finances, while stressing the importance of completing the Banking Union.

The European Commission informed the Ministers about the implementation of the sanctions against Russia, looking in particular at possible circumvention of the restrictive measures regarding the export and import of goods.

The EU27 also exchanged views on the implementation of national recovery and resilience plans.

Keravnos also participated on Tuesday in the work of the Eurogroup, where macroeconomic developments in the euro area were discussed on the basis of the economic forecasts of the European Commission, as well as the structural challenges for businesses in the context of increased geopolitical tensions.

Ministers were briefed by the European institutions on the state of the banking sector in the light of recent financial developments in the US, while agreeing on a road map of work to further deepen the capital markets union. Finally, they took stock of the progress of the digital euro project.