Brussels: Finance Minister Makis Keravnos stated that the cost of compliance reports with EU regulations is exceedingly high during the Economic and Financial Affairs Council (ECOFIN) meeting in Brussels. He emphasized that reducing administrative burdens will be a primary initiative for the Cypriot Presidency of the Council of the EU in the first half of 2026.
According to Cyprus News Agency, the EU Finance Ministers discussed simplifying procedures and reducing bureaucracy and compliance requirements mandated by the EU legislative framework. These discussions were based on proposals from the Commission through the Omnibus legislative package.
The Commission’s proposal includes focusing compliance report obligations on large companies while decreasing the frequency of submissions. Keravnos highlighted the significance of reducing bureaucracy and administrative burdens, particularly for small and medium-sized enterprises, to enhance the overall competitiveness of the European economy.
Describing the cost of preparing compliance reports as too high, Keravnos expressed that the proposed streamlining is a step in the right direction, as it is expected to free up substantial resources for SMEs. He also reiterated that simplifying and reducing administrative burdens will be a key priority during the Cyprus Presidency.
Cyprus is set to assume the six-month Presidency of the Council of the EU in January 2026, as part of the ongoing trio of Presidencies with Poland, which holds the current Presidency, and Denmark, which will preside in the second half of 2025.
During ECOFIN, ministers also discussed the impact of the Russian invasion of Ukraine, focusing on effective sanctions implementation from the customs authorities’ perspective. Updates were given on the Recovery and Resilience Mechanism, and political agreement was reached on the Directive on Administrative Cooperation in Taxation (DAC9).
On Monday evening, EU finance ministers, during a working dinner hosted by the Polish Presidency, explored options for financing increased defense needs due to political and geopolitical developments. Keravnos noted Cyprus’s support for directing resources to bolster European defense security, provided public finances are sustainable, and emphasized the importance of investment in European defense companies.
In the Macroeconomic Dialogue on Monday, which includes the Council of the EU, the Commission, and European social partners, Keravnos highlighted the need to enhance European economic competitiveness in light of current geopolitical challenges and stressed reducing bureaucracy and administrative burdens for businesses and workers.
Additionally, Keravnos held a bilateral meeting with his German counterpart, J¶rg Kukies, on the sidelines of the Council.