Keravnos urges Cyprus to balance economic stability with fast-changing global pressures

Limassol, Cyprus. Finance Minister Makis Keravnos said on Friday that Cyprus needed to safeguard its long-term economic stability while adapting to fast-moving global challenges. Speaking at the Limassol Economic Forum 2026, he warned that Europe could no longer depend on assumptions considered valid 10 to 20 years earlier.

Global shifts complicate economic planning

Keravnos said the speed of worldwide change was making both forecasting and accurate interpretation of current events more difficult. Regional conflicts, climate change and the energy crisis were adding to the complexity of international conditions, he said.

He argued that nothing was standing still, especially within the present political and economic environment, as previously accepted assumptions were being questioned at an unprecedented rate.

According to the minister, shifts in geopolitical power were generating fresh risks and dangers. Meanwhile, advances in technology, notably artificial intelligence (AI), were reshaping everyday life, employment and productivity, while creating new models of economic activity.

Coordinated action and the EU’s role

Keravnos said inflation and higher living costs were putting governments, companies and households under strain. Europe, he added, had to find a balance between maintaining social cohesion and remaining economically competitive.

These were linked challenges rather than passing difficulties, he said, calling for a coordinated response.

“No country can face these challenges alone,” he said.

Keravnos argued that this highlighted the importance of the European Union (EU), which represented not merely a single market but a community united by values and principles. He described the bloc as Europe’s foremost means of tackling the challenges facing it.

Forum’s contribution recognised

The minister commended the organisers, saying the forum had become a significant venue for assessing geopolitical shifts, trends in the economy and major challenges worldwide.