Cyprus Finance Minister Makis Keravnos, who holds the rotating presidency of the EU Economic and Financial Affairs Council (ECOFIN), expressed optimism that a final agreement on the Market Integration and Supervisory Package will be reached shortly, following Tuesday's meeting.
"Developments vindicate exactly the EU's timely recognition that our strategic autonomy is particularly important for improving the competitiveness of the European economy," Keravnos told reporters in response to a CNA question, adding that this can be achieved through capital markets integration.
The main outstanding issues concern the central supervision and governance model of the European Securities and Markets Authority (ESMA), on which "there are some views among member states," he noted.
Nevertheless, the Minister assessed that "the climate was very positive to proceed with a further discussion on the basis of a document submitted by the Cyprus Presidency, so that we can soon reach a final convergence that everyone can agree on."
Keravnos explained that the Cyprus Presidency has held 13 technical meetings between January and April, achieving the first comprehensive examination of the proposal, while Ministers broadly recognised the need to avoid duplication of efforts and increased costs, as well as the importance of striking the right balance between ambition and speed.
On the sidelines of the main agenda, ECOFIN reached a general approach on combating VAT fraud, providing for direct access by the European Public Prosecutor's Office (EPPO) and the European Anti-Fraud Office (OLAF) to VAT databases. Keravnos described the agreement as "a key step in the fight against fraud," stressing that it "ensures that the exchange of information and access to data are strictly regulated, while safeguarding the necessary data protection standards."
The meeting also reviewed progress on the €90 billion loan to Ukraine, with the minister noting that "the Cyprus Presidency has worked tirelessly to ensure all elements needed for the loan were in place," enabling disbursements to begin as soon as possible. Ministers also discussed the outcomes of the G20 Finance Ministers and central bank governors meeting of 16 April, focusing on the economic outlook and global imbalances.
For his part, Commissioner for Economy Valdis Dombrovskis stressed that capital markets integration is more urgent than ever, calling for the maintenance of pace and ambition. He noted that it has never been more important to take the necessary steps to ensure the single market delivers on its potential, particularly when it comes to capital.
On VAT, the Commissioner welcomed the agreement, noting it makes the fight against VAT fraud "more efficient, effective, and better coordinated," as EPPO and OLAF will now have direct access to VAT information at EU level.
On the Recovery and Resilience Facility, he announced disbursements of €3.5 billion to seven member states since March, with an additional €16 billion to Slovakia and €4.6 billion to Greece disbursed today. He also presented the Commission's new Better Regulation Communication, featuring an action plan to simplify rules across 12 key areas, calling on Parliament and Council to assess legislative amendments using a common methodology.
On the Middle East conflict, Dombrovskis noted it is already affecting the global economy through higher energy prices, stressing that fiscal support should remain "temporary and targeted, focusing on the most vulnerable, while safeguarding fiscal sustainability" and that the green transition and electrification must continue.
On Ukraine, the Commissioner said the Commission is in advanced negotiations on a memorandum of understanding setting out the financial conditions, in coordination with the IMF, while also working to finalise a loan agreement that must enter into force before disbursements can begin. On sanctions, he announced the adoption of the 20th sanctions package against Russia, noting it "puts pressure on key sectors" of the Russian economy, and underlined that sustaining and escalating pressure on Russia remains essential.
CNA/EK/EPH/2026
ENDS, CYPRUS NEWS AGENCY
