Cyprus’ Ministry of Finance calls for EU fiscal flexibility alongside discipline and stronger competitiveness

Cyprus’ Ministry of Finance published remarks delivered at the 17th Limassol Economic Forum calling for European economic policies that adapt to changing conditions while preserving fiscal discipline. The remarks advocated greater flexibility in European economic governance to reflect the economic cycle, alongside simpler regulation and measures to strengthen competitiveness. They also argued that reducing strategic dependencies should not come at the expense of open trade. Fiscal stability should remain the central framework for European economic policy, but rigid approaches that disregard economic conditions could undermine that objective. The proposed approach combines regulatory simplification and reduced administrative burdens with greater investment in innovation, research and workforce skills. Strengthening the Single Market and completing the Savings and Investments Union were identified as steps toward mobilising European capital for productive investment. The remarks also supported diversifying supply chains and energy sources, accelerating the green transition and developing cross-border energy infrastructure. They reviewed Cyprus’ contribution through its presidency of the Council of the European Union, citing progress on competitiveness, capital markets integration, the Multiannual Financial Framework and the digital euro. Cyprus’ fiscal policy, declining public debt, financial system stability and reforms were presented as foundations of its economic performance.