Cyprus has placed the strengthening of the Single Market at the centre of its EU Presidency agenda, Energy, Commerce and Industry Minister Michalis Damianou said on Friday.

The minister delivered his remarks in Nicosia during a keynote address at the “Shaping Europe’s Growth and Competitiveness” conference.

The event was organised by the Institute of Chartered Accountants in England and Wales (ICAEW) along with the Institute of Certified Public Accountants of Cyprus (ICPAC).

The minister told the conference that Europe stands at a decisive crossroads, shaped by a rapidly evolving global environment.

“We operate in an environment shaped by geopolitical instability, technological disruption, the climate transition, energy uncertainty and increasingly intense global competition,” he said.

“However, despite these challenges, Europe has significant advantages,” he added.

He stressed that the European Union continues to benefit from its position as the world’s largest integrated market, alongside strong institutions and competitive businesses.

“We have the largest unified market in the world, strong institutions, leading research capabilities, world-class talent and businesses that continue to innovate and adapt,” he said.

“In this context, the question is no longer whether Europe has the potential to remain competitive globally,” he continued.

“The real question is how we can harness this potential faster, more efficiently and through stronger collective action,” he added.

Damianou explained that this approach underpins the Cyprus EU Presidency’s priorities, which aim to enhance competitiveness by making the economy more innovative, productive and resilient.

What is more, he said that this ambition is already being translated into concrete legislative work.

“The Single Market remains Europe’s greatest economic achievement,” he said.

“However, businesses, especially SMEs and scale-ups, still face fragmented rules, overlapping procedures and administrative burdens when trying to operate across borders,” he added.

“This is why the Cyprus Presidency has placed strengthening the Single Market at the core of its work,” he continued.

The minister said Cyprus has been actively advancing discussions on the European Commission’s “Terrible Ten” initiative, which aims to remove persistent barriers to cross-border business activity.

These include complex establishment procedures, inconsistent application of EU rules and fragmented national regulatory approaches.

At the same time, he noted that preparations are underway for discussions on the “28th Regime” initiative, highlighted in reports by Mario Draghi and Enrico Letta as an opportunity to deepen economic integration.

“For Cyprus, a stronger Single Market does not simply mean deregulation,” he said. “It means better regulation.”

“It means giving businesses more space and time to innovate while reducing the administrative burdens they face when operating cross-border,” he added.

“This matters because Europe cannot compete globally based on labour costs alone,” he continued.

He argued that Europe must instead focus on innovation and industrial strength to remain competitive.

“Europe must compete through innovation, advanced manufacturing, clean technologies and industrial excellence,” he said. “This is why Cyprus has prioritised issues that directly support Europe’s industrial future.”

Damianou also highlighted progress on the proposed European Competitiveness Fund, noting that Cyprus is working towards a partial agreement by June.

“This initiative aims to consolidate funding instruments, reduce administrative burdens, accelerate decision-making and help close Europe’s investment gap in strategic industrial sectors,” he stated.

He added that Cyprus is also advancing discussions on legislation for a European Industrial Accelerator, designed to support the decarbonisation of energy-intensive industries.

Efforts are also continuing on practical solutions for businesses, including the eDeclaration initiative, aimed at simplifying cross-border service provision.

“These are not technical exercises but reforms that directly affect whether European companies choose to invest, innovate and grow here in Europe,” he explained.

“Of course, no discussion on competitiveness today can ignore energy,” he added.

“Affordable, secure and sustainable energy has become one of the defining economic issues for Europe,” the minister continued.

Moreover, Damianou stressed that energy is a central pillar of the Cyprus Presidency’s agenda.

“We are currently leading negotiations on the EU Grids Package, with the aim of reaching a general approach during the Energy Council in June,” he added.

The minister explained that the proposed package is essential for strengthening cross-border electricity interconnections and improving network efficiency.

“Competitiveness depends on a fundamental reality that European industries cannot remain globally competitive if energy remains structurally more expensive than in competing regions,” he said.

He subsequently linked energy policy directly to broader economic security. “Energy security today is economic security and economic security is competitiveness,” he stated.

The minister also highlighted Cyprus’ geographic position and strategic role. “Cyprus lies at the crossroads of Europe, the Middle East and Asia,” he said.

“Historically, we have been a bridge between continents, markets and cultures,” he added.

“Today, through our Presidency, we aim to become something more: a bridge of ideas, a bridge of cooperation and a bridge of practical European solutions,” he continued.

Damianou added that Cyprus is committed to supporting Europe across sectors such as trade connectivity, digital transformation and energy interconnections.

The minister also emphasised the broader importance of competitiveness for Europe’s future.

“Competitiveness is no longer just an economic objective,” he said.

“It is about prosperity and resilience, it is about strategic autonomy and ultimately it is about preserving the European way of life,” he added.

“Cyprus is committed not only to managing legislative files but to building consensus and driving reform,” he continued.

“Most importantly,” the minister said, “we are committed to helping Europe act with greater ambition, greater speed and greater unity.”

“Because Europe’s future competitiveness will not be determined by what we discuss but by what we deliver, and Cyprus is proud to play its part,” he concluded.