Finance Minister Makis Keravnos referred to the effects of rising inflation on citizens’ cost of living, and the need for close monitoring of the situation at the collective level were highlighted by Finance Minister Makis Keravnos in Dublin.
A statement from the Ministry of Finance reports that the Eurogroup meeting, as well as the Informal Council of Economic and Financial Affairs (Ecofin), concluded on Saturday in Dublin.
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On Friday, the ministers reviewed recent economic developments and economic policy priorities, with the participation of the Chair of the European Parliament’s Committee on Economic and Monetary Affairs.
In his remarks, Mr. Keravnos highlighted the impact of rising inflation on citizens’ cost of living, noting the need for close monitoring of the situation at the collective level and readiness to take appropriate policy measures to support economies in the short term in order to mitigate these negative consequences, without, however, undermining efforts to ensure the sustainability of public finances in the medium term and to strengthen resilience in the long term.
In this context, Mr. Keravnos raised concerns about the implications of the conflict in the Middle East, which has increased uncertainty, posing a downside risk to growth and an upside risk to inflation.
In this context, he questioned whether greater emphasis should be placed on a more active role for European diplomacy, so that it becomes more dynamic and proactive, with regard to reducing tensions and ending conflicts.
In conclusion, he noted that we must simultaneously focus our efforts—both at the national and EU levels—on the timely implementation of structural reforms and investments, particularly with regard to the completion of the Savings and Investment Union, digital finance, the promotion of innovation, and the deepening of the single market.
According to the announcement, the informal Ecofin Council began with a working lunch, during which ministers exchanged views on the competitiveness of the European banking sector, based on a presentation of the European Commission’s recent report.
In his remarks, Mr. Keravnos, after acknowledging the progress made regarding the resilience of the banking sector in Europe, reiterated Cyprus’s long-standing position in favor of the completion of the Banking Union.
In this context, he emphasized that ways should be explored to address the fragmentation of banking services and promote the simplification of procedures, with the ultimate goal of creating a truly European banking system.
At the same time, these efforts, he noted, must be combined with reliable European safeguards regarding the capital and liquidity levels of banking institutions, particularly for host Member States. The long-term goal, he noted, should remain the creation of a single deposit guarantee scheme at the European level.
On Friday afternoon, the ministers, in a joint meeting with central bank governors, discussed the future of innovation in the financial sector in Europe.
It is reported that the majority of the ministers agreed that innovation and the integration of technology into the provision of financial services can offer enormous opportunities for cost reduction and faster transactions without compromising transaction security.
Furthermore, the finance ministers and central bank governors agreed that the integration of technology into the financial sector poses risks that must be identified, assessed, and addressed by ensuring effective oversight that safeguards monetary sovereignty, financial stability, and the safety of investors and consumers.
On Saturday morning, EU finance ministers discussed the impact of artificial intelligence on the labor market, the public sector, energy, and the geopolitical environment.
The Minister of Finance pointed out that artificial intelligence offers enormous opportunities for increased productivity and growth. Our goal, he continued, should be to facilitate the adoption of artificial intelligence to strengthen the resilience and competitiveness of the European economy.
Regarding the impact on energy, he pointed out that the operation of data centers (which are essential for the adoption of artificial intelligence) requires enormous amounts of energy as well as water for cooling. In this light, finance ministers should ensure that the development of artificial intelligence technologies does not create distortions in the rest of the economy.
Our ultimate goal, he concluded, should be to combine the acceleration of green energy production with facilitating the adoption of artificial intelligence, which will ultimately contribute decisively to improving competitiveness without disrupting social cohesion in Europe.
Source: KYPE
