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- Ελληνικά
15-16 September 2023
The informal meeting of the Economic and Financial Affairs Council of the European Union (Ecofin) concluded yesterday in Spain.Cyprus was represented by Finance Minister Makis Kerynos.
The discussion of the Finance Ministers focused on the interaction between monetary and fiscal policy. In particular, it was stressed that fiscal policy should remain prudent so as to be in line with the intended objectives of monetary policy. The two policies need to work complementarily in order to address both the current challenges of high inflation and interest rates and the EU's future priorities of going green and digital and ensuring sustainable growth.
The Ministers also exchanged views on promoting the EU's strategic autonomy and international economic cooperation, strengthening its role on the international geopolitical scene.
In addition, Mr. Keraynos participated in the Eurogroup proceedings, where macroeconomic developments in the euro area were discussed on the basis of the presentation of the European Commission's summer forecasts. Mr Keraynos agreed on the need to align fiscal policy with monetary policy in order to contain inflation, but without jeopardising economic growth prospects. In this context, he reiterated his concern about the impact of the continued rise in interest rates on the economy and inflation. In particular, he stressed the need for a thorough analysis both at the aggregate level and at the level of each country to get a clearer picture of the impact on consumption, investment, debt servicing by vulnerable borrowers, the capital needs of small businesses, job creation and bank balance sheets.
(OP)
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