Cyprus agrees that support for Ukraine must remain a top priority for finance ministers, especially as Cyprus is also a victim of invasion and occupation, the Minister of Finance Makis Keravnos said on Tuesday in Brussels during the Economic and Financial Affairs Council of the EU (Ecofin). On Monday, Keravnos took part in a meeting of the Eurogroup.

On Tuesday, the Council also approved amendments to the national recovery and resilience plan of Cyprus, as well as those of Greece, Germany, Poland, and Finland. Ministers also discussed the implementation of the Recovery and Resilience Mechanism and were briefed by the European Commission.

The Council endorsed the country-specific recommendations for the coordination of member states' economic policies recently published in the context of the European Semester, as well as Council conclusions on the 2024 in-depth reviews under the macroeconomic imbalances procedure.

During Ecofin, the Hungarian Presidency of the Council of the EU briefed ministers on its economic and financial priorities until December 2024. These include the implementation of the new economic governance framework, promoting measures to enhance competitiveness and deepen the Capital Markets Union, and completing the Banking Union.

In his remarks, Keravnos reiterated the position that support for Ukraine needs to remain a key priority as long as Russia's aggression continues. The Finance Minister emphasized that Cyprus supports assistance to Ukraine, citing Cyprus's own experience of illegal invasion and continued occupation for 50 years. He welcomed the priorities of the Hungarian Presidency and assured constructive cooperation from Cyprus.

The Council also endorsed the EU's mandate ahead of the meeting of finance ministers and central bank governors of the G20 on 25 and 26 July.

On Monday, Keravnos participated in a meeting of the Eurogroup, during which a joint communiqué on the fiscal policy guidelines for 2025 was adopted.

Ministers agreed that in 2025, euro area member states should undertake a gradual and sustainable consolidation of their public finances, given the need to reduce high budget deficits and public debt. They also stressed the need for swift and consistent implementation of the new economic governance framework, which is expected to lead to a restrictive fiscal policy for the euro area as a whole by 2025.

Speaking during the Eurogroup, Keravnos said that fiscal policy should be prudent, taking into account the current economic situation, the budgetary positions of member states, and the risks that the euro area continues to face.

He also stressed the importance of not jeopardizing the growth prospects of member states, noting the need to maintain sufficient levels of investment. Keravnos expressed concern about promoting investment at the EU level after the end of the Recovery and Resilience Mechanism in 2026.

Keravnos underlined the importance of implementing structural reforms and investments to improve the competitiveness of the eurozone. He agreed that the new economic governance framework is appropriate for achieving fiscal policy objectives for 2025, emphasizing the importance of effective and consistent implementation of the new framework.