Nicosia: If we succeed in empowering small and medium-sized enterprises, we will not only enhance competitiveness, but we will also secure Europe's autonomy, Minister of Energy, Commerce and Industry, Michael Damianos, has said at the Extraordinary Employers' Group meeting in Nicosia.
According to Cyprus News Agency, in his address, Damianos noted that the theme of the meeting, 'Autonomy through competitiveness: SMEs at the core of Europe's strategic preparedness.' "captures perfectly the direction in which the European Union must move", a Ministry press release said. Damianos emphasized that strategic autonomy is now a practical necessity, shaped by geopolitical uncertainty, technological disruption, and the urgency of the green transition. Competitiveness, he declared, is fundamental to achieving this autonomy.
In Cyprus, Damianos highlighted that approximately 99% of the 125,000 businesses are SMEs. These enterprises are vital for employment, innovation, and growth, playing crucial roles in sustaining local communities, supporting regional development, and contributing to economic vitality.
He detailed that the Ministry of Energy, Commerce and Industry has integrated SMEs into its policy framework, implementing measures to enhance competitiveness and productivity. This includes active investment in entrepreneurship and improved access to finance.
Damianos explained that substantial resources are being channelled into the economy through European funding instruments. Under the 2021-2027 programming period, £227.3 million have been secured via the Cohesion Policy Funds, alongside £124.5 million from the Recovery and Resilience Fund and the new REPowerEU Plan.
The Ministry is also focusing on industrial modernization and reducing structural barriers such as production costs, skills mismatches, and weak linkages between services and industry.
He stressed that national efforts alone are insufficient, highlighting Cyprus's active role under its Presidency of the Council of the European Union in shaping a coherent European response. The Minister recalled emphasizing the importance of strengthening the Single Market at a recent Informal Meeting of Competitiveness Ministers in Nicosia.
The Minister pointed out the necessity of reinforcing Europe's industrial base, particularly in strategic sectors like defence, where over 2,500 SMEs are critical. Supporting these enterprises requires financing tools, better coordination, standardization, and reducing market fragmentation.
Damianos concluded by asserting that Europe possesses all the necessary assets, including a strong industrial base, skilled workforce, world-class research, and a unique social model. He stressed the need for alignment between European and national policies, ambition and implementation, and economic strength and societal resilience. Empowering SMEs is central to this effort, enhancing competitiveness, securing Europe's autonomy, strengthening preparedness, and ensuring sustainable prosperity for all.