Minister of Finance, Makis Keravnos, highlighted the decisive importance of defence sector funding, both for strengthening the EU’s strategic autonomy and for improving the competitiveness of the European economy, during the EU Economic and Financial Affairs Council (Ecofin) meeting held today in Luxembourg.

According to a Ministry statement, during a working breakfast, the ministers exchanged views on the future financing of the defence sector, based on a reflection paper from the Presidency, with Keravnos also pointing out that defence spending should not come at the expense of other EU investment policies, while also stressing the need for such funding to remain in line with the sovereign rights and concerns of all EU Member States.

As stated, during the main part of the meeting, ministers were briefed on the progress of negotiations on the customs union reform, as well as on the package of legislative proposals on crisis management and deposit insurance, which is an important pillar towards the completion of the banking union, with the Minister of Finance highlighting Cyprus’ support for the Polish Presidency’s efforts on these legislative proposals.

It is added that the Ministers also exchanged views on strategies for reducing energy prices on the basis of a guidance document from the Polish Presidency. During the discussion, the importance of reducing energy prices for improving the competitiveness of the European economy was highlighted. In this context, the Ministers stressed the need for investment in renewable energy sources, networks, and storage technologies that enable the interconnection of national electricity grids, thereby contributing to lower energy prices.

In addition, the Council adopted recommendations on the medium-term fiscal and structural plans of Belgium and Bulgaria, as well as on the excessive deficit procedure for Belgium and Romania, and also examined the Convergence Reports of the European Central Bank and the European Commission and adopted a recommendation of the euro area Member States on the European Commission’s proposal to allow Bulgaria to join the euro area on 1 January 2026.

Finally, ministers were informed of progress in implementing the Recovery and Resilience Facility and approved the amended National Recovery and Resilience Plans of Cyprus, Belgium, Malta, Lithuania, Poland, Croatia, Slovenia, and Italy.

It is also noted that, on the sidelines of the Council, Keravnos participated in the annual European Investment Bank Governors Meeting, where the results of the Bank’s activities for the year 2024 were presented.

In his remarks, the Minister expressed his satisfaction with the continued support of the EIB in important sectors of the European economy, such as agriculture, water supply, housing, and sectors that contribute to ensuring territorial cohesion, and stressed that the current economic challenges require continued commitment from all, as well as effective coordination. He also thanked the EIB for its support to the Cypriot economy through the provision of financing solutions and expertise.