The Minister of Finance participated in the Economic and Financial Affairs Council (ECOFIN)

The meeting of the Economic and Financial Affairs Council of the European Union (ECOFIN) concluded today, 09 October 2026, in Luxembourg. The Republic of Cyprus was represented by the Minister of Finance, Mr Makis Keravnos.

During the meeting, Ministers reached agreement on the Market Integration and Supervision Package (MISP), based on a compromise text prepared by the Irish Presidency. The package aims to deepen the single market for financial services, thereby helping to strengthen the competitiveness of the European economy. With agreement now reached, negotiations with the European Parliament can begin, with a view to reaching a swift agreement and bringing the new framework into force as soon as possible.

Mr Keravnos congratulated the Irish Presidency on its efforts to secure agreement, building on the progress achieved during the Cyprus Presidency o fthe Council of the European Union (EU). He described the outcome as an honest compromise which, although it does not meet all of Cyprus's initial positions, strikes the right balance between differing views. Today's agreement, he continued, is expected to make a decisive contribution to the competitiveness of European financial markets, while ensuring the effective involvement of national supervisory authorities.

Ministers then held an exchange of views on the competitiveness of the European banking sector, based on a recent report by the European Commission. In their interventions, ministers acknowledged the significant progress made in recent years in strengthening the resilience of the EU banking system, which they described as a prerequisite for completing the Banking Union and enhancing competitiveness. They also underlined the need to advance simplification measures that would facilitate cross-border transactions, while stressing that the relevant reforms should be implemented with care so as not to disrupt financial stability.

In his intervention, Mr Keravnos reiterated Cyprus's long-standing support for the completion of the Banking Union, with the aim of achieving a resilient, competitive and integrated banking sector. He stressed that the forthcoming legislative proposals should address the fragmentation of banking services and promote the simplification of procedures, without compromising financial stability.

The Council also approved the revised medium-term fiscal-structural plan of Czechia and the extension of the escape clause for the Hellenic Republic to cover expenditure that strengthens energy security. Finally, the Council approved conclusions on climate finance ahead of the 31st United Nations Climate Change Conference (COP31), to be held in Antalya from 9 to 20 November 2026, as well as the EU terms of reference for the meeting of G20 Finance Ministers and Central Bank Governors in Bangkok on 15 October 2026.

On the previous day (8 October 2026), at the Eurogroup meeting in inclusive format, attended by all EU Member States, Ministers discussed how developments in the energy market are affecting fiscal and structural policies in the euro area. In his intervention, the Minister of Finance underlined that, as the conflict in the Middle East continues and escalates, uncertainty and risks to growth and inflation are intensifying. In this context, he stressed that the EU's energy autonomy can only be achieved by stepping up investment in electricity generation and storage. This transition, however, requires considerable time and substantial investment, at a time of limited fiscal space and when households and businesses are under significant pressure.

"For this reason", he added, "we stand with the member states that support further flexibility within the economic governance framework, enabling member states to finance both immediate support measures and medium-term investment and reforms in pursuit of the green transition."

Concluding, he emphasised that any such flexibility must be carefully designed so that the medium-term sustainability of public finances is not put at risk.

(AS)