[PIO] Participation of the Minister of Finance at the Eurogroup meeting and the Economic and Financial Affairs Council

Brussels, 15-16 May 2023

The EU's Economic and Financial Affairs Council (Ecofin) concluded its work this afternoon in Brussels. Cyprus was represented by Finance Minister Makis Kerynos.

The Council's proceedings focused on the spring economic forecasts of the European Commission, which briefed the ministers. According to the Commission's forecasts, the economic growth rate of the Cypriot economy for 2023 and 2024 is estimated at 2.3% and 2.7% respectively, compared to 1.6% for 2023 and 2.1% for 2024 in the Commission's winter forecasts. It is worth noting that the estimated growth rate of the Cypriot economy for 2023 is the fifth highest among euro area Member States and the sixth highest among EU Member States. The Commission estimates that the average economic growth rate in euro area Member States for 2023 will be 1.1%, while for the EU Member States as a whole it will be 1%.

In the context of the Council's work, the European Commission also presented its legislative proposals on the revision and further strengthening of the Banking Crisis Management and Deposit Insurance Framework (CMDI), with a focus on medium and smaller banks. Ministers had a first opportunity to express their initial views on the proposal before it is submitted for technical work to the relevant Council working group. Cyprus welcomed the Commission's proposed legislative changes, with Finance Minister Makis Keraynos expressing the view that a stronger crisis management framework can improve cost-effectiveness, support the real economy, protect depositors and provide stronger protection of public funds, while stressing the importance of the integration of the Banking Union.

The European Commission briefed Ministers on the implementation of sanctions against Russia, examining Ministers were briefed by the European institutions on the situation of the banking sector in light of recent financial developments in the US, and agreed on a roadmap for further deepening the Capital Markets Union. Finally, they took stock of the progress of the Digital Euro project.

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