Brussels: Minister of Finance Makis Keravnos highlighted the necessity for regional partners to align with European standards and values during the Economic and Financial Dialogue held in Brussels, with attendees including a Turkish representative.
According to Cyprus News Agency, Keravnos addressed the Economic and Financial Affairs Council (ECOFIN) of the EU, commenting on remarks from the Turkish representative. He noted Cyprus’s positive stance on fostering EU-Turkey relations, which led to the lifting of Cyprus’s objections to the Turkey-EU economic dialogue. He expressed expectations for Turkey to adopt a constructive approach on various issues, including the Cyprus problem resolution, within the framework of UN resolutions as agreed by the European Council in April 2024.
Keravnos participated in the dialogue representing Cyprus, which is set to hold the Presidency of the Council of the EU in the first half of 2026. The meeting included EU’s Western Balkan partners, Turkey, Moldova, and Ukraine, alongside the current Polish Presidency, the upcoming Danish Presidency, the Commission, and the European Central Bank. The Finance Minister emphasized the importance of strengthening regional cooperation and aligning with EU priorities to deepen economic cooperation.
During the ECOFIN meeting, EU finance ministers discussed creating an EU facility to enhance defence capabilities (SAFE), promoting investment in European industry. Keravnos stressed the need to strengthen the EU’s defence and technology base, focusing funding on European defence industries. He highlighted that third-country participation should respect EU Member States’ territorial integrity and international law, specifically referring to Cyprus’s situation.
Ministers also discussed the Commission’s strategy for deepening the Savings and Investment Union to increase financial opportunities and the EU’s competitiveness. Keravnos welcomed the proposal’s emphasis on private investor participation and increased financing options for SMEs and start-ups, highlighting the importance of financial literacy and digital access to safe products.
Updates were provided on the Recovery and Resilience Mechanism’s implementation, with amendments to the National Recovery and Resilience Plans of the Netherlands, Slovakia, Spain, and Portugal approved. ECOFIN members also agreed on a directive concerning VAT rules for distance sales of imported goods and were briefed on the outcomes of the G20 Finance Ministers and Central Bank Governors meeting.