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The Republic of Cyprus
The State
Official name of state: Kypriaki Democratia (Greek), Kibris Cumhuriyeti (Turkish), Republic of Cyprus (English)
Independence Day: 1 October
Cyprus gained its independence from British colonial rule in 1960. In 1974 Turkey invaded Cyprus and occupied 36,2% of its sovereign territory. The ceasefire line runs right across the island and cuts through the heart of the capital, Nicosia (Lefkosia), dividing the city and the country.
Although its northern part is under foreign occupation, the Republic of Cyprus is internationally recognised as the sole legitimate State on the island with sovereignty over its entire territory.
The Flag
The flag of the Republic of Cyprus was defined in 1960 when Cyprus became an independent sovereign state. (The flag was subsequently modified by a decision taken by the Council of Ministers (Decision no 63.673) on 4 April 2006.) The background is white with a copper-coloured silhouette of the map of Cyprus in the centre of the flag above two crossed olive-green-coloured olive branches. The copper colour has a dual symbolism: first, the name of the island is said to derive from an ancient word for copper (Eteocypriot or Sumerian); and second, copper is closely associated with Cyprus since antiquity when the island became a major producer and supplier of this mineral resource. The olive branches are symbols of peace.
The Emblem
The Emblem of the Republic of Cyprus depicts a white dove carrying an olive branch in its beak and placed inside a shield in the colour of copper (a metal directly related to Cyprus since ancient times); the year “1960”, also in white, appears underneath the dove; the shield is braced by two olive-green-coloured olive branches, which along with the white dove constitute symbols of peace.
Government
Cyprus is an independent sovereign Republic with a presidential system of government. The constitution provides for separate executive, legislative and judicial branches of government with independent powers. The President is both Head of State and Government.
Executive
Presidency
According to the 1960 Constitution, the President is to be Greek Cypriot elected directly by the Greek Cypriot community and the Vice-President is to be Turkish Cypriot elected directly by the Turkish Cypriot community, for a five-year term of office.
The Constitution provides that executive power is exercised jointly by the President and the Vice-President, through a Council of Ministers appointed by them (seven and three ministers respectively). Both the President and the Vice-President have the right of final veto on decisions of the Council of Ministers and laws or decisions of the House of Representatives concerning foreign affairs, defence and security. In 1964, however, the Turkish Cypriot Vice-President and three ministers withdrew from the government and since then the government has been functioning by necessity only with Greek Cypriots in all ministries, which have been subsequently increased to eleven. The post of Vice-President remains vacant.
Council of Ministers
The Council of Ministers exercises executive power in all matters. Each Minister is the head of his or her Ministry and exercises executive power on all matters within that Ministry’s domain.
The Government Spokesman and the Deputy Minister to the President are also present at the meetings of the Council of Ministers.
Legislature
House of Representatives
Legislative authority is exercised by a unicameral House of Representatives. Its members are elected for a five-year term. At the time of its establishment the House consisted of 50 members, 35 of whom were to be Greek Cypriots and 15 Turkish Cypriots. In 1985 the number of seats was increased to 80, 56 allocated to Greek Cypriot members and 24 reserved for Turkish Cypriot deputies.
Following the withdrawal of the Turkish Cypriot members in 1964, the House has been functioning only with the Greek Cypriot members.
The Maronite, Armenian and Latin religious groups, which vote as part of the Greek Cypriot community, elect one additional representative each from their ranks. These non-voting representatives attend meetings but do not participate in the House deliberations. They are consulted on issues of particular interest to their respective group.
The President of the Republic of Cyprus is invested in office by the House of Representatives.
Since the vacancy of the Vice-President’s office in 1964, the President of the House serves as Acting President of the Republic in the absence or temporary incapacity of the President of the Republic.
Judiciary
The judiciary is established as a separate power, independent from the other two branches of the state and autonomous in its sphere of competencies, authority and jurisdiction.
The Supreme Court
The Supreme Court is the highest court and is composed of thirteen judges, one of whom is the President. It has jurisdiction to examine the constitutionality of any law or any conflict of power or competence which arises between any organs or authorities of the Republic. In addition, it hears and determines any recourse by the President of the Republic regarding the compatibility with the constitution of any law enacted by the House of Representatives. As the final
Appellate Court of the Republic, it has jurisdiction to hear and determine all appeals from lower courts in civil and criminal matters. Functioning as the Electoral Court, it has the power to hear and determine petitions concerning the interpretation and application of the Electoral Laws. It also functions as an Admiralty Court with original and appellate jurisdiction.
First Instance Courts
The principal First Instance Courts are the District Courts operating in every district of the Republic with the exception of the occupied areas. They are composed of District Judges, Senior District Judges and Presidents of District Courts. The other First Instance Courts are: the Assize Courts, the Military Court, the Industrial Disputes Court, the Rent Control Courts and the Family Courts.
Judges
First Instance Judges are appointed, transferred, promoted and are subject to the disciplinary jurisdiction of the Supreme Council of Judicature (composed of the members of the Supreme Court), whereas Supreme Court Judges are appointed by the President of the Republic.
Independent Officers and Bodies
There are also independent officers and bodies which do not come under any ministry, including: Attorney-General and Auditor-General who head the Law Office and Audit Office respectively; Governor of the Central Bank; Ombudsman (Commissioner for Administration); Public Service Commission; Education Service Commission; Planning Bureau; Treasury; Commission for the Protection of Competition; Commissioner of Electronic Communications and Postal Regulation; Commissioner for Personal Data Protection; Commissioner for the Protection of Children’s Rights; Law Commissioner, Tenders Review Authority; Tax Tribunal; Internal Audit Service; Cyprus Radio Television Authority; Cyprus Securities and Exchange Commission.
The Central Bank of Cyprus
The Central Bank of Cyprus was established in 1963 as an autonomous institution. Since July 2002, the Central Bank has been governed by the Central Bank of Cyprus Law of 2002, as this was amended in 2007. This law ensures the Bank’s independence as well as compatibility with the relevant provisions of the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank. It is an integral part of the eurosystem, which comprises the national central banks of the euro area countries and the European Central Bank.
The Central Bank supervises banks which are incorporated in Cyprus, including local subsidiaries, branches and representative offices of foreign banks. There are 17 locally incorporated banks currently operating in Cyprus, nine of which are subsidiaries of foreign banks. In addition, there are 26 branches of foreign banks, and two representative offices of foreign banks.
Local Authorities
There are two types of local authorities: Municipalities and Communities, which are governed by separate laws. In principle, Municipalities constitute the form of local government in urban and tourist centres while Communities constitute the local structure in rural areas. Mayors and Community Presidents are elected directly by the residents for a five-year term.
Municipalities and Communities
Any Community may become a Municipality by local referendum subject to the approval of the Council of Ministers, provided it has either a population of more than 5.000, or has the economic resources to function as a Municipality. The main responsibilities of Municipalities are the construction, maintenance and lighting of streets, the collection, disposal and treatment of waste and environmental protection and improvement.
The functions of Communities are generally similar to those of Municipalities, although structurally different. The government provides to most Communities essential administrative and technical assistance through its District Offices.
International Relations
On foreign policy issues the Cyprus government aligns itself with the European Union position in the context of the EU’s Common Foreign and Security Policy. Since 1974 the government’s efforts have focused primarily on ending Turkey’s military occupation and forcible division of the country. Cyprus has long identified with the West, but also has close relations with the rest of the world, including with Russia and other eastern European countries; India, China, Japan and other countries in Asia; Latin America, Africa, the Arab world and Israel. Cyprus is a member of many international organisations including:
- The United Nations (UN) (1960) and its specialised agencies
- The Council of Europe (CoE) (1961)
- The Commonwealth (1961)
- Organisation for Security and Cooperation in Europe (OSCE) (1975)
- World Trade Organisation (WTO) (1995)
- The World Bank
- The International Monetary Fund.
Location and Area
Cyprus is a small island of 9.251 sq kms (3.572 sq miles), extending 240 kms (149 miles) from east to west and 100 kms (62 miles) from north to south. It is strategically situated in the far eastern end of the Mediterranean (33° E, 35° N), at the crossroads of Europe, Africa and Asia, and in close proximity to the busy trade routes linking Europe with the Middle East, Russia, Central Asia and the Far East.
Topography
Cyprus has two mountain ranges: the Pentadaktylos range which runs along almost the entire northern coast, and the Troodos massif in the central and south-western parts of the island which culminates in the peak of Mount Olympus, 1.953 m. above sea level. Cyprus' coastal line is indented and rocky in the north with long sandy beaches in the south. Between the two ranges lies the fertile plain of Messaoria.
Climate
Cyprus has a Mediterranean climate: hot dry summers from June to September and mild, wet winters from November to March, which are separated by short Autumn and Spring seasons of rapid change in weather patterns in October, April and May. Sunshine is abundant during the whole year, particularly from April to September when the daily average exceeds eleven hours.
Flora and Fauna
Seventeen percent of the island is woodland. The natural vegetation includes forests of evergreen and deciduous trees, shrubs and flowers. The flora comprises about 1.800 species, sub-species and varieties. About 140 or 7% of these are endemic to Cyprus. The Cyclamen (Cyclamen cyprium) has been declared Cyprus’ national plant while the Golden Oak (Quercus alnifolia) has become the island’s national tree.
The fauna of Cyprus includes some 7 species of land mammals, 26 species of amphibians and reptiles, 365 species of birds, and a great variety of insects, while the coastal waters of the island give shelter to 197 fish species and various species of crabs, sponges and echinodermata.
The largest wild animal that still lives on the island is the Cyprus moufflon, a rare type of wild sheep that can only be found in Cyprus.
Population
952.100 (December 2011)*
- 71,5% (681.000) Greek Cypriots**
- 9,5% (90.100) Turkish Cypriots
- 19,0% (181.000) foreign nationals
* The population does not include the illegal settlers from Turkey (currently estimated at about 160.000) residing in the Turkish-occupied part of Cyprus.
** This figure includes the 8.400 (0,9%) Maronites, Armenians and Latins who opted to join the Greek Cypriot community. Under the 1960 Constitution they had to choose to belong to either the Greek Cypriot or Turkish Cypriot community
Population density: 103 persons/sq km
Vital Statistics
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Birth rate 11,3 per thousand (2011)
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Death rate 6,5 per thousand (2011)
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Growth rate 2,6% (2011)
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Life expectancy (males) 79 (2010/11)
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Life expectancy (females) 82,9 (2010/11)
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| Towns | Population (Dec. 2011) |
| Nicosia (Lefkosia) (capital) | 245.900* |
| Limassol (Lemesos) | 184.600 |
| Larnaca (Larnaka) | 86.400 |
| Paphos (Pafos) | 63.900 |
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| Towns under Turkey’s occupation | Population** |
| Famagusta (Ammochostos) | 38.960 |
| Morphou (Morfou) | 7.466 |
| Kyrenia (Keryneia) | 3.892 |
* The population in the Government controlled part of the city only.
** Population prior to the 1974 Turkish invasion.
Languages
Greek and Turkish are the official languages. English is widely spoken.
Religion
Greek Cypriots are predominantly Christian and adhere to the Autocephalous Greek Orthodox Church of Cyprus. Turkish Cypriots are Sunni Muslims, while Maronites belong to the Maronite Catholic Church, Armenians predominantly to the Armenian Apostolic Orthodox Church and Latins to the Latin Catholic Church.
Cultural Heritage
- Neolithic settlements (Khirokitia)
- Classical, Hellenistic and Roman monuments (Salamina, Ancient Odeon of Pafos, Mosaics from the House of Dionysos in Pafos)
- Byzantine and Latin churches and monasteries (the Church of Panayia Phorviotissa-Asinou, the Church of Ayios Nikolaos tis Stegis, Kykkos Monastery)
- Lusignan and Venetian fortresses and castles (12th – 16th century), (Bellapais Abbey, Venetian Walls of Nicosia, St Hilarion Castle)
- Mosques (Hala Sultan Mosque, Bayraktar Mosque).
Special effort is made to protect and preserve the cultural heritage in the Turkish occupied areas.
Multiculturalism
Geographically, Cyprus is at a crossroads of civilisations and a bridge between cultures.
Cyprus has been conquered by many powers at various periods and has managed to assimilate various cultural influences. Its geographic and strategic position has turned it into an example and prototype of harmonious coexistence of different cultures. Dispersed throughout its territory are historic and religious monuments of varying styles, themes and philosophies.
As an EU member state, this advantage contributes to the promotion of principles on which the European ideals are based, that is, the peaceful coexistence, cooperation, respect for diversity and the seeking of a convergence of ideas.
Economy
Even though the political problem remains unresolved, the free market economy in the government-controlled area has made remarkable recovery since 1974. The economic success is attributed to, among other factors: the adoption of a market-oriented economic system, the sound macroeconomic policies of successive governments, as well as the existence of a dynamic and flexible entrepreneurial community and a highly educated labour force. During the last two decades the Cyprus economy turned from agriculture to services and light manufacturing. Cyprus is, today, a major tourist destination as well as a modern economy offering dynamic services with an advanced physical and social infrastructure. Additionally, during the last years Cyprus has exhibited rising living standards, as shown by the high level of real convergence with the EU.
On 1 January 2008, the Republic of Cyprus joined the eurosystem and introduced the euro as its official currency, replacing the Cyprus pound as the unit of account. Thus, euro banknotes and coins are the country’s legal tender.
However, the recent international economic crisis, which has had a major impact on world growth, also brought to the surface major structural imbalances of the Cyprus economy. Given the deceleration of the economy, the government adopted a number of fiscal measures to support the real economy in line with the wider European effort for economic recovery.
The average annual growth in the past five years (2006-2010) has been 2,67% while inflation stood at 2,5% and unemployment at 4,9% over that period.
Sector % Contribution to GVA* (2010)
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Primary (mainly Agriculture) 2,0%
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Secondary (mainly Manufacturing
and Construction) 17,0%
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Tertiary 81%
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*Gross Value Added
Other Economic Data 2010
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Per capita income EUR 20.400 (estimate)
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Inflation (CPI) 2,6%
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Rate of Growth 1,6% (third quarter)
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Unemployment 7,0%
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Economically active population 409.584 (third quarter)
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Gainfully employed 387.909 (third quarter)
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Foreign Business and Shipping
The strategic location of Cyprus, its favourable tax environment, educated work force, excellent telecommunications and modern banking and legal infrastructure make the country an ideal business bridge for the European Union and the Middle East.
Cyprus’ friendly entrepreneurial environment and supporting facilities compare favourably with those of the best established centres in the world. The island is considered to be a primary international business centre among approximately 50 countries offering similar facilities.
Foreign investors can register a company directly with the Registrar of Companies and obtain a licence, if needed, from the appropriate authority. Following the convergence of the former “international” banking sector with the “domestic” banking sector in January 2006, applications from foreign banking institutions are examined under a new framework which makes no distinction between “domestic” and “international” or “offshore” operations. Cyprus is also an important shipping centre and currently has in its registry one of the leading merchant fleets in the world.
Services
The tertiary or services sector is the fastest growing area and today in constant prices accounts for about 81% of GVA (Gross Value Added) and around 73% of the gainfully employed population. The Services Sector offers to business people a comprehensive range of services from accounting and banking to legal services, information technology, business consulting, design, engineering, shipping and marketing, health care and education. These in conjunction with the competitive fees charged, and the professional attitude of Cypriot service providers, account for the transformation of the island into a highly reputable and reliable business centre.
Manufacturing
Manufacturing in 2010 is estimated to have accounted for 17% of GVA and provides employment to 9,7% of the workforce. The main industries are food, beverages, tobacco, textiles, clothing, footwear, leather goods, metal products, chemicals and plastic products.
Industrial Development
Industrial development has been amongst the primary objectives of the government, as it constitutes a vital component of economic policy. Cyprus’ accession to the EU provides Cypriot enterprises with the opportunity of participating in the various community programmes concerning industrial technology; product development; marketing and professional training, thus further enhancing the process of restructuring.
The Industrial Development Service (IDS) of the Ministry of Commerce, Industry and Tourism, aims at accelerating the rate of growth of the manufacturing sector and enhancing its competitiveness under free market conditions. Within this framework the IDS has introduced a number of investment incentives.
Imports/Arrivals
Imports/arrivals are classified according to their economic destination i.e. consumer goods, intermediate inputs, fuels and lubricants, transport equipment and capital goods. In 2010 (January-October), the European Union (EU27) remained the main source of supply of goods to Cyprus, with a share of 69,3% of total imports/arrivals. Major suppliers within the Union were Greece (18,9%), Germany (9,1%), Italy (8,9%), the United Kingdom (8,7%) and France (5,4%). Imports from Israel, China, Japan and Brazil accounted for 8,3%, 5,7%, 1,1% and 0,3% respectively.
Exports/Dispatches
Major exports/dispatches of domestically produced goods are pharmaceutical products, cement, cheese including “halloumi”, paper goods, potatoes, citrus fruit, vegetable juices and aluminum products. In 2010 (January-October), dispatches to European Union (EU27) were 50,1% of domestic exports, mainly to Greece (19,5%), Germany (9,5%) and the UK (7,3%). In addition, 15% of total exports went to Near and Middle Eastern countries, whereas 7,1% to other Asian countries.
Transhipment
On account of its geographical position, Cyprus has developed into an important transshipment centre with a large volume of re-exports going to the markets of the Middle East and Central Europe.
Agriculture and Fishing
Agriculture and Fishing contributed 2% to GVA in 2010 and provided employment to 7,3% of the working population. Principal crops are potatoes, other vegetables, cereals, citrus, grapes and olives. Livestock farming is mainly in cattle, sheep, goats, pigs and poultry. Fish production is derived from inshore and trawl fishing and marine aquaculture.
Environmental Policy
The policy on the protection of the environment has been totally revised since EU accession and priority has been given to the establishment and expansion of the environmental infrastructure for the management of resources and waste, protection, preservation and management of coastal areas, promotion of energy saving and renewable energy sources and the reduction of greenhouse gas emissions. Strict criteria have been placed on the use of substances which deplete the ozone layer and the regulation on the control and prevention of water and soil pollution arising from industrial and husbandry activities has been enforced.
Natural Resources
The island’s natural resources are copper, gypsum, timber, marble, bentonite and earth pigment, but none exist in significant quantities. Water is a scarce resource in Cyprus. The problem has been met by the construction of dams and desalination plants.
Health and Social Welfare
Free medical care in government hospitals and health centres is available for low-income families, refugees and civil servants. There are also more than 87 private clinics with more than 1.500 beds and a large number of practices offering a wide range of medical services. The ratio of persons per doctor was 358 in 2008.
A comprehensive social insurance scheme covers every working male and female citizen and their dependants. The benefits and pensions from the scheme cover unemployment, sickness, maternity, widows, injury at work, old age and death.
There is also a broad range of welfare services provided by the government, including children’s day care centres, old people’s homes, and facilities for the disabled, the elderly, free housing for displaced persons as a result of Turkey’s military invasion, rent subsidies and financial assistance to community organisations.
Education
Education is provided through pre-primary and primary schooling, secondary general and secondary technical vocational schools, special schools, higher and tertiary education institutions and non-formal institutions and centres. Education is compulsory up to the age of 15. Primary, secondary and higher education in public schools and universities is free. Cyprus has three state universities, the University of Cyprus and the Open University both located in Nicosia and the Cyprus University of Technology in Limassol as well as four private universities and 22 colleges and institutions of higher education.
Cyprus ranks high in terms of third-level education with about 80% of those completing secondary school in 2009-2010 continuing their studies. More than half the university students study abroad, mainly in Greece (51,2%), the UK (39,8%) and the USA (1,8%).
In 2009-2010 53% of students studying abroad and 59,1% enrolled on third-level education courses in Cyprus were women.
Culture
Great importance is attached to the promotion of culture with emphasis on the promotion of literature, music, dance (modern and classical), the visual arts, cinema and theatre. In addition, a special arts festival, the “Kypria”, is organised annually and hosts artists and ensembles of international acclaim from Cyprus, Greece and many other countries.
There are also a number of museums including the Cyprus Museum in Nicosia which is the largest archaeological museum. The museums contain exhibits representing the history of the island and include ceramics, sculpture, metal objects, jewellery, tomb groups, Byzantine icons, as well as objects of traditional arts and crafts.
Furthermore, the State Gallery houses on a permanent basis the State Collection of Contemporary Cyprus Art, while it periodically hosts important exhibitions from abroad as well as retrospective exhibitions of the pioneers of the Cyprus visual arts.
Additionally, the Cultural Services of the Ministry of Education and Culture organise exhibitions of contemporary Cypriot artists both in Cyprus and abroad as well as exhibitions within the framework of cultural exchanges with other countries or in collaboration with overseas museums and art institutions. They also arrange or support the participation of Cypriot artists in large international exhibitions.
Media
Cyprus enjoys total freedom of speech. Freedom of expression and media are safeguarded by the Constitution and the relevant Press and Radio and Television Station Laws.
Currently there are:
- 7 dailies and a large number of weeklies and periodicals in circulation
- 7 island-wide and 8 local TV channels
- 10 island-wide and 41 local radio stations
- 1 news agency (Cyprus News Agency).
In addition, there are a number of private subscription cable and satellite TV networks. Cyprus serves also as a base for a number of international news media outlets and correspondents covering the broader Middle East region.
/Source: Cyprus at a Glance, Published by the Press and Information Office of the Republic of Cyprus, 2011/
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