In
July 1993 the Commission delivered a favourable
opinion on Cyprus’s application for membership.
The European Council subsequently reaffirmed on
several occasions, most recently at Florence in June
1996, that accession negotiations with Cyprus should
start six months after the conclusion of the IGC.
1.
Economic development
In
its 1993 opinion the Commission noted the Republic of
Cyprus’s advanced level of development and
economic dynamism. This still holds good with full
employment (2.5% jobless rate), moderate inflation
(3%) and public debt standing at 53% of GNP in 1996.
The southern part of the island should not encounter
any major problems in adopting the acquis
communautaire or in coping with competition
inside the EU. However, there is a need to align
regulations and practices in the financial sector
more fully with those which apply in the Union and to
reinforce co-operation and controls in all areas of
justice and home affairs.
In
northern Cyprus the trends observed by the Commission
in 1993 remain unchanged. Average income per capita
is about ECU 3 600 per annum, one third of
that of the southern part of the island. The economy
is becoming increasingly dependent on the public
sector, which ultimately means financial transfers
from Turkey. Investments remain low despite its human
and natural resources.
2.
Prospects for a political settlement
The
1993 Opinion noted the continuing division of Cyprus.
Efforts since then, chiefly under UN auspices, to
work towards a political settlement, in accordance
with various UN proposals, have not achieved much
progress. The UN conducted intensive contacts with
the leaders of the two communities during the first
half of 1997 which have now led to face to face talks
between them under UN auspices. There is a chance to
make progress before the Presidential elections due
in Cyprus in February 1998.
The
shape of a settlement, establishing a bicommunal and
bizonal federation, is well established, and
supported by the Union. A number of options for
constitutional and territorial arrangements to
implement it have been explored, and the beginnings
of a possible consensus have sometimes been
discernible. But there has not hitherto been
sufficient incentive for the two communities to reach
agreement.
The
Union is determined to play a positive role in
bringing about a just and lasting settlement in
accordance with the relevant United Nations
Resolutions. The status quo which is at odds with
international law, threatens the stability of the
island, the region and has implications for the
security of Europe as a whole. The Union cannot, and
does not wish to, interfere in the institutional
arrangements to be agreed between the parties. But it
is available to advise on the compatibility of such
arrangements with the acquis of the Union. The
prospect of accession, whose political and economic
advantages are now becoming clear to Turkish Cypriots
as well as to Greek Cypriots, can in itself provide
such an incentive.
3.
Relations with the European Union
The
timetable agreed for accession negotiations to start
with Cyprus means that they could start before a
political settlement is reached. The Union shares the
view expressed by the UN Secretary General, that the
decision to open negotiations should be seen as a
positive development which could promote the search
for a political settlement.
Negotiations
on accession would be facilitated if sufficient
progress is made between the parties in contacts this
year under the auspices of the United Nations to
allow representatives of the Turkish Cypriot
community to be involved in the accession process.
Agreement on a political settlement would permit a
faster conclusion to the negotiations. If progress
towards a settlement is not made before the
negotiations are due to begin, they should be opened
with the government of the Republic of Cyprus, as the
only authority recognised by international law.
|