E6 breakout group implies EU split, says Cypriot finance minister

NICOSIA ― Cyprus’ finance minister has criticized the breakout group of six European Union countries formed to create policy to rival Wall Street, arguing it could send the wrong message about the bloc’s unity.

In an interview with POLITICO, Makis Keravnos warned against the formation of the “E6” — made up of the six largest economies, which has formed in a bid to break political deadlocks on the EU’s investment aims — ahead of a crunch meeting in Berlin on Thursday.

“I don’t think a separate structure is feasible, because it would conflict with the prevailing perception in all member states today that fragmentation must stop,” Keravnos said.

The finance ministers of France, Germany, Italy, the Netherlands, Poland and Spain are due to meet in Berlin this week to unveil political compromises on the plan to turn the bloc into an investment powerhouse.

Keravnos, whose country is not part of the breakout group, joins other smaller EU countries in expressing skepticism about the exclusive group, which they fear could bulldoze others’ opinions in pursuit of its own goals.

The finance minister said the E6 governments are proponents of market integration, so they should be clear that their initiative does not contradict it.

“We need to unify the banking system, the capital markets, and so on. The six countries —which are the driving forces of the European economy — support market integration. Otherwise, it would be a step backward.”

Keravnos was speaking on the sidelines of the eurozone finance ministers’ meeting in Cyprus over the weekend, which aimed to advance discussions on topics including the digital euro and whether EU countries can find flexibility in fiscal rules to address the energy crisis.

Last week, Italian Prime Minister Giorgia Meloni wrote to European Commission President Ursula von der Leyen, calling for greater budgetary flexibility to help manage energy costs in the wake of the war in Iran.

Keravnos said the EU should consider different options and strike the right balance, but added that it “must maintain fiscal discipline.” He argued that Cyprus has been a good model for doing so. 

“Cyprus has reduced its public debt and has been running budget surpluses. We will continue to do so because this has helped us weather ongoing crises, such as the wildfires and the effects of neighboring wars.  These surpluses and this policy have helped us deal with crises without losing control.”

Cyprus has held the EU’s rotating presidency since January, with its term ending in early July. During this time, finance ministers finalized a new €90 billion loan to Ukraine, reached a landmark reform of the customs union and the creation of a customs authority.

Italian Prime Minister Giorgia Meloni attends a summit in Paris on April 17, 2026. | Pool photo by Tom Nicholson via AFP/Getty Images

The Council also agreed on new rules to combat tax fraud and suspended customs tariffs on certain fertilizers, and Keravnos said progress has been made in the review of tobacco taxation, with a decision expected soon. The Cypriot presidency will soon also begin three-way talks on securitization.

But some issues will carry over beyond July, when Ireland is set to take on the presidency, including the digital euro and central supervision of the EU’s financial markets, which is a key topic at Thursday’s E6 meeting.

“Significant progress has also been made regarding the integration of capital markets. The discussion on central supervision has progressed, but it is expected to continue into the Irish presidency,” said Keravnos.

“The Cyprus presidency has been a success; it has made progress on a great number of issues, including some particularly difficult ones. It has also succeeded in highlighting the issue of solidarity among EU Member States,” Keravnos said, referring to the response by several EU member countries when the British bases on the island were hit by a drone at the beginning of the Middle East conflict.

However, the island’s proximity to the Middle East conflict, coupled with the extensive media coverage of the drone strike, has taken a toll on the tourism sector, one of Cyprus’s most important industries, which accounts for 14 percent of the country’s economy.

According to the country’s own statistics, there was a 30 percent drop in tourist arrivals during Easter, and concerns are growing about the summer season. The hoteliers’ association said cancellations have decreased, but the number of bookings has not increased enough to offset the losses.

“When developments like this occur, the first thing to do is convey a sense of security to the public,” said Keravnos. “Every decision comes at a cost. In any case, this was an isolated incident, and we have time to take the necessary steps to revive our tourism sector.”