Finance Minister Makis Keravnos highlighted Cyprus's position as one of the EU's strongest economies at the 65th ICPAC AGM. Backed by fiscal discipline and tax reform, the government is prioritizing a green, digital transition to sustain long-term resilience.

Resilience Amid Global Volatility

Cyprus remains one of the European Union’s strongest-performing economies despite a challenging international economic environment marked by geopolitical uncertainty and external shocks, Finance Minister Makis Keravnos said on Thursday. Addressing the 65th Annual General Meeting of the Institute of Certified Public Accountants of Cyprus (ICPAC), Keravnos pointed out the resilience of the Cypriot economy and outlined the government’s key economic policy priorities, including strengthening economic resilience, accelerating the transition to a more sustainable and competitive growth model, and ensuring that economic growth benefits all segments of society.

“The Cypriot economy is among the best-performing in the European Union in terms of economic indicators,” Keravnos said, noting that the government remains focused on safeguarding long-term stability amid an increasingly volatile global landscape.

Core Strategic Priorities and Tax Reform

He described fiscal discipline as the government’s foremost priority, emphasizing efforts to steadily reduce public debt, maintain fiscal surpluses and build fiscal buffers that would allow the country to respond effectively to both external and domestic shocks. Keravnos said a second strategic objective is the transformation of the economy into a more sustainable and competitive model through digitalisation, innovation and the attraction of high value-added investments.

He also stressed the importance of accelerating the green transition to reduce Cyprus’ dependence on imported fossil fuels and strengthen energy autonomy through renewable energy projects and energy storage systems. “The recent energy crisis demonstrated the urgent need to diversify the energy mix and reinforce energy security,” he said.

A third pillar of government policy, according to the Finance Minister, is inclusive growth. He said targeted measures are being implemented to support vulnerable households facing higher living costs, strengthen the middle class and create more and better-quality jobs. Keravnos pointed to the tax reform introduced at the beginning of 2026 as a key policy initiative supporting all of the government’s strategic objectives.

Industry Perspectives on Competitiveness

Speaking at the same event, ICPAC President Odysseas Christodoulou, who was re-elected to the post, said Cyprus continues to demonstrate strong economic resilience despite ongoing global economic and geopolitical uncertainties. “At a time when many European economies are recording subdued growth rates, Cyprus remains among the fastest-growing economies in the European Union,” he said.

Christodoulou attributed this performance to sustained economic growth, rising employment, fiscal discipline and prudent public finance management, which have helped maintain confidence in the economy. However, he stressed that maintaining competitiveness requires continued reforms, stronger institutions, fiscal responsibility and policies that encourage innovation, entrepreneurship and quality investment.

ICPAC Director General Andreas Papadatos also stressed Cyprus’ advantages as an international business and investment hub, citing the quality of professional services, the expertise of industry professionals and the sector’s international experience. At the same time, he warned that maintaining competitiveness cannot be taken for granted and requires continuous improvements in quality, reliability and specialisation to preserve Cyprus’ standing as a trusted international business centre.

Source: CNA(ΚΥΠΕ)