Cypriot Finance Minister calls for fiscal discipline amid regional conflict

On April 5, 2026, Cypriot Finance Minister Makis Keravnos emphasized the need for fiscal discipline, rejecting populism in the face of global economic pressures. He warned that the ongoing conflict in Iran poses significant risks to the national economy, energy costs, and tourism if it continues long-term. Currently, the government has no plans to introduce further measures, preferring to monitor the implementation of an eight-part support package worth €100 million announced on Wednesday. Keravnos dismissed the effectiveness of fuel price caps, citing risks of petrol station closures or price manipulation by providers. While he acknowledged some decline in tourism bookings, he stated that it is currently too early to assess major economic damage to the sector. He warned that excessive spending could risk stagnation or a slowdown in growth. The government remains focused on maintaining a responsible economic policy.