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On May 1, 2004 the Republic of Cyprus became a full member of the EU completing a long journey that lasted more than three
decades.

Accession to the EU was a natural choice for Cyprus, dictated by its culture, civilisation, history, its European outlook and adherence to the ideals of democracy, freedom and justice. EU accession has launched a new era of challenges, opportunities and responsibilities for Cyprus.

The application of the EU laws and regulations (the acquis communautaire) is suspended in the area under military occupation by Turkey, pending a solution to the division of the island. Meanwhile, the government of Cyprus in cooperation with the EU Commission has been promoting arrangements to facilitate increased economic transactions between the two communities and improve the standard of living of Turkish Cypriots.

While Cyprus has a lot to benefit from EU membership, it also has a lot to offer as a member state. Strategically situated at the crossroads of Europe, the Middle East, North Africa and Asia, Cyprus is becoming an even more important regional business centre, as well as an international communications and transport hub. With its modern infrastructure, sound legal system, tax incentives, low crime rate and well educated labour force Cyprus is a favourite regional operations platform for European companies.

Since its accession to the EU, Cyprus has undergone significant structural reforms that have transformed its economic landscape. Trade and interest rates have been liberalised, while price controls and investment restrictions have been lifted. Private financing has been introduced for the construction and operation of major infrastructure projects and monopolies have been abolished.

The new political context created by the accession to the EU is also expected to impact positively on the efforts to reach a comprehensive settlement to the division of Cyprus that will reunite its people and reintegrate its economy.


The starting point of Cyprus' accession course was the application for accession to the EU filed in July 1990. Following the Positive Avis of the European Commission in June 1993, the prospect for the accession of Cyprus to the European family took shape. The decisions of the European Council at Corfu (June 1994) and Essen (December 1994) which defined that the next enlargement phase of the EU would include Cyprus and Malta, are also considered to be of great importance.

The climax of the deliberations to secure the accession course of Cyprus was the decision taken at the European Council of Helsinki (December 1999) to dissociate the decision for the accession of Cyprus to the EU from a solution to its political problem.

Accession negotiations

The official negotiations for the Accession of Cyprus to the European Union began in March 1998. Mr George Vassiliou, former President of the Republic of Cyprus, was appointed Chief Negotiator for the negotiations for the Accession of Cyprus to the European Union and coordinator of the Harmonisation Process. In this capacity, he assumed the overall responsibility for the guidance and management of the negotiations, the supervision and coordination of the harmonisation process and the conducting of the necessary dialogue with the House of Representatives and the private sector.

In the case of Cyprus, the specific pre-accession strategy encompassed the following:

- Participation in certain targeted projects, in particular the boosting of the judical and administrative capacity, and projects
in the field of justice and home affairs;
- Participation in certain Community programmes and agencies
- Use of technical assistance provided by TAIEX (Technical Assistance Information Exchange Office).

According to the procedural arrangements set by the European Commission, the accession negotiations were to be conducted in two phases. The first phase consisted of the analytical examination of the acquis (acquis screening), while the second one covered the substantial accession negotiations.

Till December 2002 this process was completed and all the chapters were closed.

In March 2003 Mr Takis Hadjidemetriou, former Member of the House of Representatives, took the place of coordinator of the Harmonisation Process following Mr G. Vassiliou.

Financial and technical co-operation

The active and extended participation of both the private and the public sectors in EU programmes has made a significant contribution to establishing close relations with the EU, as well as facilitating the acquisition of expertise in European matters, and the modernisation of the Cypriot economy. The EU programmes available to Cyprus include: MEDA (furthering the Euro-Mediterranean Partnership), LIFE (environmental protection), COST (cooperation on research and technology), LEONARDO (vocational training), SOCRATES (education), Youth for Europe (increasing contact between young people from different countries), MEDIA II (audiovisual means), Sixth Framework Programme (research and technological development), Multi-Annual Community Programme in the field of Enterprise and Enterpreneurship.

From 1977 till 1995 Cyprus and the then EEC signed four protocols on financial and technical co-operation providing Cyprus with aid worth around 210 million EUR contributing to the social and economic development of the country, facilitating economic transition to EU accession and to support the promotion of the settlement of the Cyprus problem.

During the period 2000-2004 Cyprus received 57 million EUR in pre-accession aid on the basis of the relevant EU regulation concerning the «implementation of operations in the framework of the pre-accession strategy.

European military capabilities

As stated in the conclusions of the Helsinki European Council, the Union will ensure the necessary dialogue, consultation and cooperation with NATO and its non-EU members, other countries who are candidates for accession to the EU as well as other prospective partners in EU-led crisis management operations. In accordance to this decision, Cyprus participated in the follow-up to the Capabilities Commitment Conference, held in Brussels on 21 November 2000, where all countries which were candidates for accession to the EU and non-EU European NATO members announced their contributions to improve European Military capabilities.

As an acceding country, Cyprus participates in the European Union' s rapid reaction force, the European Military Capabilities, currently under formation. In view of the Government' s proposal for the demilitarisation of the island, Cyprus will not provide combat troops or artillery. It has offered, however, logistics support and auxiliary services to be placed at the disposal of the EU' s military force for its crisis management and peace-keeping operations in the region. Among other things it has offered to make available to the EU a transport company, the air base in Pafos, its civilian airports and ports, telecommunications, reconnaissance and monitoring facilities, radar equipment, and medical and rescue services.

Euro-Mediterranean partnership

Equipped with its complementary European and Mediterranean identities, Cyprus participates actively in the Euro-Mediterranean partnership, which remains the main comprehensive policy of the EU in the Mediterranean region since 1985. The aims of the Euro-Mediterranean partnership are: (1) to establish a common Euro-Mediterranean area of peace and stability, based on fundamental principles including respect for human rights and democracy, (2) to create an area of shared prosperity through the progressive establishment of a free-trade area between the EU and its 12 Mediterranean partners, and (3) to develop human resources, promote understanding between cultures and rapprochment of the people of the Euro-Mediterranean region, as well as to develop free and flourishing civil societies.



Measures for the Turkish Cypriots

Following the Republic' s accession to the EU, the Government of Cyprus itself announced a series of measures aiming to promote reunification and conciliation. These confidence-building measures that offer substantial tangible benefits to Turkish Cypriots are within the context of the laws of the Republic, the EU acquis communautaire and international law. These measures include:
- Movement of persons across the «green line», including all EU citizens and third country nationals

- Unmanning and removal of weaponry from military positions within the medieval walls of Nicosia and the
Famagusta-Dherynia area

- Refraining from certain types of military exercises along the buffer zone and within two kilometers of the ceasefire line

- Unilateral land mine removal from within the buffer zone

- Steps toward the circulation of public service vehicles owned by Turkish Cypriots

- Steps to facilitate the movement of goods and economic relations between the two communities

- Employment of Turkish Cypriots in the government controlled areas

- Issuance to Turkish Cypriots of official Republic of Cyprus documents such as passports, identity cards and birth
certificates

- Protection of the Turkish Cypriots' cultural heritage

- Access to free medical care at public hospitals

- Upgraded programming by the Cyprus Broadcasting Corporation to include more Turkish Cypriot programmes

- Various forms of humanitarian assistance and cooperation

- Participation by Turkish Cypriots in local and EU parliamentary elections

- Exports of Turkish Cypriot goods to the EU and to third countries in accordance with the laws of the Republic and the
European Union acquis

- Participation of Turkish Cypriots in research and in other EU programmes (Leonardo, Socrates, 6th framework, etc)

Despite obstacles by the occupation regime, especially in the implementation of EU trade regulations and financial assistance, these confidence building measures are improving the economic situation of the Turkish Cypriots. Even though they are no substitute for a comprehensive solution of the problem, these policies and the government's overall constructive approach toward the Turkish Cypriot Community, can contribute to the creation of a climate conducive to reunification and reconciliation.


The EU and the Cyprus Problem

As far as the Cyprus problem is concerned, the EU has taken a clear and firm position in support of a solution that respects the sovereignty, independence, territorial integrity and unity of the country, in accordance with the relevant UN resolutions and the high level agreements. The EU position that the status quo imposed by the Turkish invasion of 1974 and the continued occupation by Turkish troops of 35% of the island' s territory is unacceptable, was stated in the Dublin European Council Declaration (26 September 1990), the Lisbon European Council Conclusions (27.June1992) and was repeated on numerous other occasions.

The European parliament has also taken a clear and firm position on the question of Cyprus. In its resolution of 13 June 2002, it reaffirms that only a single sovereign Cypriot State will be permitted to accede. It notes that «State as provided for in the UN Security Council resolutions, i.e. bi-zonal and bi-communal, but it has to be a fully functioning entity at international level and must be in a position to exercise decision-making power; is firmly convinced that responsibilities for foreign policy, European policy, economic and monetary policy, citizenship, and security and defence policy must be delegated to a common structure.»

It says further that «whatever constitutional arrangements the parties may lay down, the acquis communautaire, fundamental freedoms, and human rights must be observed in full, and that exceptions to the acquis resulting from a settlement can be accommodated in the accession framework, whereas there can be no derogation from the principles on which the European Union is founded (e.g. human rights).»

On 16 April 2003 the Accession Treaty was signed in Athens by Cyprus and the nine other candidate countries, after the European Parliament gave its assent to Cyprus’ application to become a member of the European Union. The Protocol on Cyprus which was attached to the Treaty provides for the suspension of the application of the acquis in the areas of the Republic not under the effective control of the Cyprus Government, to be lifted in the event of a solution to the Cyprus problem. It also states that the EU is ready to «accommodate the terms of a settlement in line with the principles on which the EU is founded» and expresses the Union's desire that the accession of Cyprus should benefit all Cypriot citizens.

At its meeting on 26 April 2004 in Luxembourg, the EU Council, noting the results of the 24 April 2004 referenda in Cyprus, expressed its strong regret that the accession to the EU of a united Cyprus would not be possible on 1 May as well as its determination to ensure that the people of Cyprus would soon achieve their shared destiny as citizens of a united Cyprus in the European Union.