Nicosia, Cyprus. Cyprus Finance Minister Makis Keravnos called for increased investment across Europe while warning against weakening fiscal discipline ahead of an informal EU meeting in Nicosia. He said discussions would also address stablecoins and financial stability.
Focus on competitiveness and strategic autonomy
Speaking before the gathering of EU finance ministers and central bank governors, Keravnos said the talks would centre on competitiveness, strategic autonomy and the role of investment in strengthening the European economy. He said the slogan of the Cypriot presidency is the EU’s strategic autonomy, adding that strategic autonomy goes hand in hand with strengthening competitiveness.
Investment push alongside fiscal governance
Keravnos said boosting investment is essential to address economic and geopolitical challenges, but cautioned that such efforts must not come at the expense of the bloc’s fiscal governance framework. He said the EU must find ways to increase investment without undermining fiscal governance.
Stablecoins and financial stability on the agenda
Keravnos said stablecoins would feature prominently in the discussions, reflecting growing concern among policymakers over their impact on financial stability and monetary systems. The debate comes amid a broader shift in global financial policy as digital assets move from the margins into mainstream economic and regulatory considerations.
Regulatory focus amid economic uncertainty
Stablecoins, typically pegged to traditional currencies, have grown rapidly in recent years, prompting regulators to assess their risks and potential benefits for payments and financial infrastructure. European policymakers have increasingly focused on ensuring innovation does not compromise financial stability, particularly as geopolitical tensions and energy shocks add uncertainty to the economic outlook.
ECB stance highlighted
Earlier this month, European Central Bank president Christine Lagarde outlined a cautious stance on stablecoins, saying their role is often misunderstood and that Europe should prioritise strengthening its financial foundations rather than replicating foreign models.
What do you think EU policymakers should prioritise as stablecoins gain prominence in financial discussions?