Fiscal stability must remain the main and non-negotiable framework and goal of European economic policy, Finance Minister Makis Keravnos said on Friday. At the same time, he repeated his call for European fiscal rules to be applied with greater flexibility, so that they take account of each member state’s particular characteristics and economic conditions. He is expected to raise the issue again with European institutions.
Flexibility and stability not mutually exclusive
Addressing the opening of the 17th Limassol Economic Forum on Friday morning, Mr Keravnos spoke of the need to simplify complex regulations and reduce bureaucracy. He also called for flexibility mechanisms to be built into European economic governance, so that it reflects prevailing economic conditions.
He said flexibility and a commitment to fiscal stability are not mutually exclusive. On the contrary, he stressed that “inflexibility and a monolithic approach, which fail to weigh the economic circumstances of each period, may undermine the very stability they seek to safeguard”.
Current developments in European countries, he added, show the consequences of disrupting economic stability.
Energy security a priority for the EU
Mr Keravnos also said that energy security remains a key priority for the European Union. He said diversifying energy sources and supply routes, speeding up the green transition and developing cross-border energy infrastructure are shared European goals, and that Cyprus seeks to make a substantial and active contribution to them.
Europe’s role in a changing world
The current situation calls for responsibility, foresight and collective action, he said, as the challenges cross national borders and require common European responses.
According to Mr Keravnos, Europe has everything it needs to play a leading role in the new global reality: strong institutions, highly skilled human capital, expertise and, above all, the democratic values that form the foundation of its identity.
The task, he added, is to use these strengths with greater determination, and at a pace that does more than simply react to events and developments. He also stressed the need to strengthen the competitiveness of the European economy while ensuring that growth does not come with wider social inequalities.
