Eurozone

The European Union finance ministers reached a compromise agreement for the new Stability and Growth Pact on Wednesday during an Ecofin teleconference, after weeks of arduous consultations on the new reform framework on the pace of debt and deficit reduction by member-states.

European Union finance ministers agreed on Wednesday on changes to the EU's fiscal rules updating them to the post-pandemic realities of high public debt and the need for massive public investment to fight climate change.

The pact is complex but is built on two crucial principles: an upper limit for a country's national budget deficit, and an upper limit for its total public debt.

One of the pillars of Greek banks' profitability has been the limited increase in interest rates on deposits, leading to the highest interest spread in the eurozone - i.e. the difference between loan interest rates and deposit interest rates.

The European Central Bank must see inflation stably below 3% by the middle of next year before beginning to lower borrowing costs from record highs, ECB policymaker Yannis Stournaras told Reuters on Monday.

Cypriot banks rank second to last among European banks in terms of paying interest on total household deposits, according to data released on Wednesday by the European Banking Authority (EBA), as part of its annual risk assessment of the European banking system.

In contrast, Cypriot banks are in second place among European banks in terms of return on equity.

National Economy and Finance Minister Kostis Hatzidakis urged more investors from the United States to invest in Greece, in his speech on Monday at the 25th Invest in Greece forum organized by Capital Link in New York. 

The Eurosystem maintained its holdings of Cypriot bonds valued at 6.75 billion euros as of the end of November, data from the Central Bank of Cyprus have shown.

This stability is attributed to the European Central Bank's ongoing efforts to deleverage its balance sheet as a strategy to curb inflation.

The Eurogroup welcomed on Thursday the fact that the draft budgetary plans of Greece and another six countries (Cyprus, Estonia, Spain, Ireland, Lithuania and Slovenia) are in line with the fiscal recommendations of the European Council based on the Commission assessment.

The euro enjoys robust support across the Eurozone, with approval ratings averaging 79%, although opinions vary significantly across member states. According to a recent survey conducted by Ipsos European Public Affairs on behalf of the European Commission, diverse sentiments towards the single currency emerged, especially in Croatia, where skepticism persists.

In a definitive stance, European Commissioner for the Economy, Paolo Gentiloni, underscored the unwavering commitment to stringent criteria for Bulgaria's entrance into the Eurozone, dispelling any prospects of leniency or "flexibility" in the accession process.