ECOFIN in Nicosia: the EU bets on competitiveness and financial sustainability

At the informal meeting of the EU Council on Economic and Financial Affairs (ECOFIN), which concluded in Nicosia, the key topics were strengthening the European Union's competitiveness and preserving fiscal stability amid geopolitical uncertainty.

EU Commissioner for Economy and Productivity Valdis Dombrovskis said that the European Commission has focused its efforts on four areas: removing barriers within the single market, simplifying regulation, encouraging productive investment and reducing energy costs for businesses and households.

According to Dombrovskis, Brussels has already presented more than 45 initiatives aimed at boosting the competitiveness of the European economy. He stressed that growth and more efficient spending management remain the main response to growing challenges — from population ageing to rising defence spending.

Particular attention at the meeting was devoted to digital finance and cryptocurrencies. The European Commission confirmed its intention to develop a strict but competitive regulatory framework for stablecoins and other cryptoassets. This week, the EU launched consultations on revising the MiCA regulation governing the cryptocurrency market.

Cyprus Finance Minister Makis Keravnos noted that the meeting took place amid instability in the Middle East, which is already affecting energy markets, trade and transport chains. According to him, Europe needs strategic resilience, investment coordination and more efficient use of resources.

Keravnos stressed that EU member states agreed to maintain a balance between investment in defence, the green transition and digitalisation on the one hand, and fiscal discipline on the other. He also said that the European Union must take into account the vulnerability of individual countries when designing support measures.

Participants in ECOFIN confirmed their intention to accelerate reforms at both the national and pan-European level in order to strengthen the resilience of the EU economy amid global instability.