It is a great pleasure to join you at the University of Cyprus for this timely discussion on "Healthcare Innovation as a Catalyst for European Union (EU) Competitiveness." At the outset, I would like to thank the Cyprus-Swiss Business Circle, the Faculty of Economics and Management of the University of Cyprus, Novartis and, of course, the Swiss Embassy for bringing us together. I also wish to acknowledge our keynote speaker, Mr Wojciech Nowak, Executive Director for Global Public Affairs at Novartis, as well as our distinguished panellists, Ms Stella Kyriakides, Dr Marianna Prokopi - Demetriades and Professor Sofronis Clerides. Your presence underscores both the importance and the promise of today's theme.

The pharmaceutical sector is a cornerstone of the Cypriot economy, playing a vital role in trade and overall economic development. Pharmaceutical products consistently rank among the country's top exports, with official figures for 2024 recording a total value of approximately €350 million.

At the same time, imports of pharmaceutical products in 2024 exceeded €530 million, ensuring market adequacy and access to specialised and modern pharmaceutical products. The combined dynamics of imports and exports strengthen Cyprus' international engagement and establish the pharmaceutical sector as a strategic driver of the country's economic growth.

The Ministry of Energy, Industry and Commerce remains committed to supporting all productive sectors through the Strategy and Action Plan for Strengthening the Competitiveness and Internationalisation of Cypriot Industry for 2026-2030. The pharmaceutical industry is, in fact, considered a key sector in which targeted initiatives will be undertaken, holding significant prospects for sustainable growth, greatly facilitated by high technology.

The challenges faced by the industry are numerous and our goal must be clear: to convert scientific excellence into tangible outcomes, namely into better care for patients and a stronger, more resilient European economy. Achieving this requires predictable regulatory frameworks, strong collaboration and open channels for knowledge, capital and talent, so that innovation can travel faster from discovery to delivery, wherever patients live.

Indeed, this vision is fully aligned with the discussions held at Thursday's Competitiveness Council in Brussels, whereby emphasis was placed on charting a bold path forward with the new European Biotech Act. We are moving towards a dual-framework approach: while the first Biotech Act focuses on strengthening health biotechnology and simplifying procedures for health and food applications, Biotech Act II, which is currently under discussion, concentrates on biomanufacturing and industrial biotechnology.

Several member states advocate for an ambitious framework that reduces regulatory burdens and establishes a new Biotechnology and Biomanufacturing Hub. These initiatives contribute directly to the broader Strategic Framework for a Sustainable EU Bioeconomy, which envisions biotechnology as the engine that will make European bio-based solutions more affordable, competitive and deployable at an industrial scale by 2040.

Dear friends,

Europe's competitiveness in pharmaceuticals is inseparable from our capacity to innovate. Our strength has always been world-class research, highly skilled talent and a strong life sciences base. But global competition is intensifying and investment decisions are increasingly made elsewhere.

If we want breakthrough treatments to be discovered, developed and manufactured in Europe, we must reinforce our research and development (R&D) ecosystem.

The European Competitiveness Fund is a key instrument in this effort. It can help derisk early-stage innovation, support scale-up of biotech companies and mobilise private investment in strategic sectors such as life sciences.

By strengthening innovation, we strengthen Europe's competitiveness - and we ensure that Europe remains a global leader in pharmaceuticals. Through the European Competitiveness Fund, we are safeguarding groundbreaking research, high-value investment and advanced manufacturing within Europe - thereby putting a stop to the offshoring of European companies and benefiting our patients, our economy and our strategic resilience.

This is why the European Competitiveness Fund is high on our agenda as the Presidency of the Council of the EU, and why we are striving to reach a partial general approach before the end of our term.

Concluding, I would also like to point out that healthcare innovation must remain anchored in ethics and equity. Breakthroughs that never reach the patient serve neither competitiveness nor our shared European values. We must therefore pursue a dual objective: ensuring access, so that therapies are available and affordable, and maintaining stewardship, so that limited resources are used wisely, with transparency and accountability.

Progress will not occur automatically. It will require sustained cooperation between ministries and regulators, between universities, hospitals and firms, and between us and our European partners.

I look forward to the discussions and insights that will follow and would like to, once again, thank our hosts for convening us. I also thank all of you for your commitment to advancing this agenda. Together, we can ensure that healthcare innovation becomes a genuine engine of European competitiveness, delivering better lives for our people and a stronger, more resilient economy for our Union.

Thank you.

(GS/KA)