The Cypriot Presidency of the Council of the European Union made a substantial contribution to advancing key legislative dossiers in the areas of the economy and fiscal affairs, strengthening the competitiveness of the European economy, modernizing the customs union, integrating capital markets, tax cooperation, and support for Ukraine, Finance Minister Makis Keravnos, on Tuesday, as he presented the report on the Cypriot Presidency’s achievements in his area of responsibility.

During a press conference, Mr. Keravnos described the six-month Presidency as a particularly demanding but also extremely productive period, noting that Cyprus assumed the Council presidency at a time of intense geopolitical turmoil, with the war in Ukraine, the conflict in Gaza, developments in the Middle East, and their impact on the European economy and energy security.

As he noted, these circumstances made it necessary to take decisions that would strengthen the European Union’s competitiveness and resilience, with the Cypriot Presidency placing policies that promote sustainable development, fiscal stability, and the strengthening of the Union’s strategic autonomy.

The Minister noted that during the Cypriot Presidency, he chaired five ECOFIN meetings, one General Affairs Council meeting on cohesion policy, as well as the informal meetings of EU Finance Ministers and Central Bank Governors and the Ministers responsible for Cohesion Policy, which were hosted in Cyprus.

According to him, the Presidency’s central objective was to strengthen the European Union’s financial autonomy and create the conditions for greater productivity and competitiveness in the European economy.

Focus on the Savings and Investment Union

He made special mention of the work on the Savings and Investment Union, describing it as a key pillar of European competitiveness.

As he explained, the Cypriot Presidency has promoted a series of legislative initiatives aimed at increasing the efficiency of European capital markets, by simplifying the regulatory framework without compromising investor protection.

In this context, he said that substantial progress had been made on the so-called package of measures for market integration and supervision (Market Integration and Supervisory Package), which is a key element of the European strategy to create an integrated financial system that will benefit both investors and businesses.

Mr. Keravnos noted that the issue was discussed at three different ECOFIN meetings, with the Cypriot Presidency submitting specific working documents and questions to the member states, thereby contributing—as he said—to the convergence of different approaches and to the progress of the negotiations.

New Rules for Pension Products and Financial Services

At the same time, he noted that the Council reached agreements on a series of legislative proposals concerning supplementary pensions and, in particular, the revision of the pan-European personal pension product (PEPP), to make it more attractive, accessible, and financially sustainable.

As she said, the changes aim to remove existing restrictions that have hindered the widespread adoption of the product since its adoption in 2019, creating new investment opportunities and enhancing liquidity.

According to the Minister, significant progress has also been made in the financial services sector through the revision of rules on sustainability disclosures, the promotion of the retail investment strategy, and the promotion of the new Payment Services Directive.

These changes, she said, aim to enhance transparency, protect consumers, combat fraud in electronic payments, and expand investment options for citizens and businesses.

Economic Governance and Ukraine

Referring to the first pillar of the Presidency, the Minister emphasized the implementation of the EU’s new economic governance framework agreed upon in 2024, as well as the coordination of Member States’ economic policies through the European Semester.

He made special mention of the completion of the Recovery and Resilience Facility, noting that during the Cypriot Presidency, 20 decisions amending national recovery plans were adopted.

At the same time, he referred to the ongoing financial support for Ukraine, pointing out that the Cypriot Presidency helped resolve outstanding issues that were delaying the implementation of a decision to grant a 90 billion euro loan to the country.

As he said, these efforts enabled the European Commission to proceed in June with the disbursement of the first tranche of 3.2 billion euros.

He recalled that Cyprus, as a country that continues to suffer the consequences of the Turkish invasion and occupation, has consistently supported every effort to assist states facing similar circumstances.

Budget and Cohesion Policy

The Minister also referred to the progress made on the European budget and the new Multiannual Financial Framework for the period 2028–2034.

As he noted, the Cypriot Presidency succeeded in moving the relevant negotiations from the technical to the political level, bridging significant differences among member states.

According to him, Cyprus presented the first negotiating framework with indicative figures, reaching common ground in key areas and laying the groundwork for a timely agreement on the European Union’s new seven-year budget.

Mr. Keravnos described as particularly important the fact that cohesion policy was maintained as an autonomous European policy, noting that it is directly linked to strengthening competitiveness and reducing development disparities among regions.

Taxation and the Fight Against Fraud

In the area of taxation, the Minister noted that new rules were agreed upon to combat VAT fraud more effectively through enhanced cooperation among Member States, the European Public Prosecutor’s Office, and the European Anti-Fraud Office (OLAF).

As he explained, the new regulations allow for faster access to the necessary information, thereby facilitating the investigation of cross-border tax fraud cases.

At the same time, he noted that the Cypriot Presidency had made substantial progress in discussions on the taxation of tobacco and nicotine products, submitting—as he put it—a balanced proposal that garnered broad acceptance and paves the way for the Irish Presidency to finalize the agreement.

Historic reform of the customs union

He made special mention of the reform of the Union Customs Code, which he described as the most significant since the creation of the customs union in 1968.

As he said, the agreement provides for the creation of a state-of-the-art single customs data hub, which will serve as a central platform for information exchange, enhancing traceability and the effectiveness of customs controls.

In addition, it provides for new simplified procedures for trusted economic operators, the creation of a European customs authority, and the imposition of a single processing fee for small parcels entering the European Union.

The Minister also noted that, following intensive negotiations, an agreement was reached to strengthen the Carbon Border Adjustment Mechanism (CBAM), while a temporary suspension of customs duties on basic nitrogen fertilizers was also approved, a measure expected to reduce costs for farmers and limit the EU’s dependence on Russia and Belarus.

“Cyprus has proven that it has human resources of a European standard”

Responding to a question about what Cyprus gained from the Presidency, Mr. Keravnos noted that the most significant benefit was the international recognition of the ability of the Cypriot public administration and its technocrats to manage complex European dossiers.

As he noted, the work of the Cypriot Presidency was recognized by the European institutions, the Commissioners, and the ministers of the member states, confirming that the country can play a substantive role in shaping European policies.

“Cyprus has proven that it has the human resources capable not only of addressing national issues but also of designing and implementing European policies,” he said, adding that the successful completion of the Presidency strengthened the country’s voice and credibility within European institutions.