Minister Michael Damianos emphasized that the theme of the meeting, “Autonomy through competitiveness: SMEs at the core of Europe’s strategic preparedness,” perfectly aligns with the EU's necessary trajectory. He noted that strategic autonomy is now "a practical necessity, shaped by geopolitical uncertainty, technological disruption, and the urgency of the green transition." 

The Minister highlighted the sheer scale of SME influence within Cyprus, noting that out of approximately 125,000 businesses, around 99% are SMEs. According to Damianos, these enterprises are the "primary drivers of employment, innovation, and growth, sustaining local communities, supporting regional development, and contributing decisively to our economic vitality." 

To support these businesses, the Ministry is deploying a massive financial framework. Damianos explained that under the 2021–2027 programming period:

• €227.3 million has been secured through Cohesion Policy Funds.
• €124.5 million is allocated from the Recovery and Resilience Fund and the new REPowerEU Plan.

The focus remains clear: "First, we are actively investing in entrepreneurship. Second, we are improving access to finance."

Looking ahead to the Cyprus Presidency of the Council of the European Union, the Minister stressed that national efforts must be mirrored by European action. He recalled that at a recent ministerial meeting, the consensus was clear: "strengthening the Single Market remains the cornerstone of European competitiveness. A deeper, more integrated Single Market is essential to allow SMEs to scale, innovate, and compete globally."

"We also highlighted the need to reinforce Europe’s industrial base, including in strategic sectors such as defence, where over 2.500 SMEs play a critical role. Supporting these enterprises requires not only financing tools, but also better coordination, standardisation, and the removal of fragmentation across markets," he added. 

The Minister said that Europe has all the necessary assets: a strong industrial base, a highly skilled workforce, world-class research, and a unique social model.

What is required now, he stressed, is alignment between European and national policies, between ambition and implementation, and between economic strength and societal resilience. "SMEs are central to this effort. If we succeed in empowering them, we will not only enhance competitiveness, but we will also secure Europe’s autonomy, strengthen its preparedness, and ensure sustainable prosperity for all," he concluded. 

Source: CNA (ΚΥΠΕ)