Brussels: Cyprus' Minister of Finance and acting President of the Eurogroup, Makis Keravnos, addressed the press on Thursday regarding his role as interim president and the eurozone's economic trajectory, member states' fiscal plans, and the process of electing a new Eurogroup president following a meeting in Brussels.
According to Cyprus News Agency, Keravnos expressed his pleasure at the election of Kyriakos Pierrakakis as the new Eurogroup president, set to begin his term on December 12. He praised Pierrakakis for his constructive contributions during the election process and also commended Vincent Van Peteghem for his dedication to the Eurogroup's work.
Keravnos conveyed confidence in Pierrakakis' ability to lead the Eurogroup into a new era of cooperation and effectiveness. He also took the opportunity to acknowledge the departure of Paschal Donohoe from the presidency, lauding his years of dedicated service and his pivotal role during challenging times, including the pandemic and the energy crisis caused by Russia's aggression in Ukraine.
Furthermore, Keravnos announced his upcoming chairmanship of the ECOFIN for six months starting in January, emphasizing that today's Eurogroup presidency was a preparatory obligation. He highlighted the eurozone's resilience in maintaining positive growth rates and low unemployment while bringing inflation back to target, despite existing challenges.
Keravnos pointed out that the security situation remains the most serious challenge, with known obstacles needing to be addressed to enhance economic dynamism while ensuring sound public finances. Discussions also revolved around centralized supervision, fiscal rules, and the complexities of financing defense investments within a restrictive budgetary environment.
Regarding fiscal plans, Keravnos noted their compatibility with the Council's recommended net expenditure path. However, the European Commission's assessment indicated that three plans were at risk of non-compliance, and two faced substantial non-compliance risks. Keravnos urged these member states to take necessary measures to ensure compliance with the Stability and Growth Pact.
He also called on Spain and Belgium to submit their budgetary plans promptly, assuring that the Eurogroup would assess them once they are available. Additionally, Keravnos announced the initiation of the selection process for a successor to Luis de Guindos, Vice President of the European Central Bank, whose term expires in May 2026.