Cyprus a new member of the European Union, a discussion of the advantages and disadvantages of joining.

AS and A Level Politics

Module 00719 – Foundation Project Constantinos Stylianides

Final Project 03109693

Cyprus a new member of the European Union,

a discussion of the advantages and disadvantages of joining.

Name: Constantinos Stylianides

Student no.: 03109693

Module tutor: Richard Haill

Date: 14th of June 2004

Word count: 3,253 words

1. Introduction

1.1. Description of the topic

Cyprus has always been a part of the European family. The goal of joining the EU is a natural choice for Cyprus. On 1st of May 2004 ten new countries joined the European Union (EU), one of those was Cyprus. Cyprus is very well known because of its problem, with Turkey’s invasion of the north part of the island in 1974. I have chosen to write about my country where I have been living all my life. The subject is very topical because this year Cyprus has been writing some very important pages in its history book, with its joining the EU, and also many other countries are talking about it. It’s a very interesting topic because Cyprus is a country where since the past was always in trouble. Cyprus is a divided country, occupied from Turks, and it makes it special because its capital, Nicosia, is the only remained divided capital in the world.

1.2. The main sources of investigation

My main sources for this project are journals, although I found some newspaper articles and a book. The most interesting Journal is the “Application of Cyprus to the European Union and the Cyprus Problem”, which includes many ideas and arguments about Cyprus and the EU. Also another interesting journal, written by the former president of Cyprus, George Vasiliou, is the “Cypriot Accession to the EU and the Solution to the Cyprus Problem”.

1.3. Aims of the Project

The aims of this project are to give a general idea of Cyprus’ recent history and the current situation, including the membership of the EU and the ‘Cyprus problem’. It also discusses briefly some important aspects of recent history and the project will also analyse the advantages and disadvantages of joining the EU.

2. Main Body

2.1. Brief history of Cyprus after 1960.

Cyprus is the third largest island in the Mediterranean Sea (9.251 sq. km), located in the eastern part of it. The geographical place of Cyprus plays a bridge building role between Europe, Asia and Africa (Appendix, image1). Due to its strategic position dozens of powers including the Ottomans, ruled Cyprus and until today, many countries with power in their hands, show an interest in Cyprus. (Sertoglu & Ozturk, 2003)

In 1878 the Ottomans handed over the administration of Cyprus to Britain. After Cyprus became a British colony, an underground movement (EOKA) fought a war of rebellion against the British colony (1955-1959) and eventually gained the liberation of Cyprus from the British Empire. On the 16th August 1960 Cyprus became an independent republic. Cyprus with its independence, gained membership’s into many European organizations. (“About Cyprus”, 2001)

In 1974 the military government in Greece (the Junta), staged a coup to remove the elected president of Cyprus Archbishop Makarios III. Five days later Turkey using the coup as a reason, invaded Cyprus, with a pretext of restoring the constitutional order. (“About Cyprus”, 2001)

The results of the Turkish invasion are:

37% of the island is under Turkish military occupation. (Appendix image2)
200,000 Cypriots refugees, moved from the north part of the island to the south part.
1619 missing Greek Cypriots, Turkey refuse to say where those people are, and so on no one knows where those people are.

Many efforts were made from the Cyprus government for the settlement of this situation, but Cyprus is still to be divided and many issues are open since 1974.

2.2. The failure of the UN mission in Cyprus.

“The Cyprus problem has been ...

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The results of the Turkish invasion are:

37% of the island is under Turkish military occupation. (Appendix image2)
200,000 Cypriots refugees, moved from the north part of the island to the south part.
1619 missing Greek Cypriots, Turkey refuse to say where those people are, and so on no one knows where those people are.

Many efforts were made from the Cyprus government for the settlement of this situation, but Cyprus is still to be divided and many issues are open since 1974.

2.2. The failure of the UN mission in Cyprus.

“The Cyprus problem has been with us for several decades now. It is one of the oldest outstanding issues facing the United Nations” (Vassiliou, 2003). Many efforts have been made from the Greek part of the island for a total demilitarization of Cyprus, but always Turkey refused to consider the proposals and continues to maintain its army on the island. UN efforts to resolve the Cyprus problem over the time were always failing and the island remains divided. Many human rights, such us freedom of movement, residence and right to ownership are violated by Turkey. (Appendix image3)

Since 1974 no one Greek-Cypriot can go to the southern part of Cyprus and therefore no one Turkish-Cypriot can go to the northern part. Until last Easter, Turkey decided to open the borders, and therefore now people can travel to the other side, and staying for a maximum 3 nights to the other side of the island. Many Cypriots do not agree with this because the Turkish part is asking for passport every time that you will travel to the northern part. In contrast the Cyprus government only asks for an ID. This cause many disputes between the citizens for showing your passport in your own country.

2.3. The European Union

The procession of European completion begun on the 9th of May in 1950 when the French Republic proposed formally to other European countries to build the “First Foundations of a New European Federation”. (European Commission, 2004)

The main targets of the EU are:

Establishment of European nationality,
Creation and sensation to the citizens for freedom, security and justice,
Continuation of the economical and social progress,
Securing the role of Europe in the whole world. (European Commission, 2004)

2.3.1. Application of Cyprus to join the EU

Cyprus applied to become member of European Union on the 3rd of July 1990. But the division of the island has complicated the island’s application for EU membership. The Turkish government has warned that it will take control of the northern part of the island – the self-declared Republic of Northern Cyprus- if Cyprus joins before its status is resolved. But Greece has threatened to veto all EU enlargement plans unless Cyprus joins in 2004. (Atasoy, 2003)

Sertoglu and Ozturk (2003) stated that there are various reasons for a country to want to join the European community. Usually those reasons are economic, but for Cyprus the political reasons are more serious than the economic. They also stated that “The trade balance between Cyprus and the EU continued to worsen for Cyprus in the last decade of the twentieth century”. (Appendix table1) Worsen of the trade balance between Cyprus and EU is not a reason to make Cyprus not to join the EU.

2.3.2. Relations between Cyprus and the EU.

From 1970 the relations between Cyprus and the EU were excellent. Cyprus was one of the first countries which signed an Association Agreement with the EU. The EU has taken a clear and firm position to support Cyprus and find a respectable solution to the Cyprus problem. It has also demonstrated an interest in the Cyprus problem by the decision which was taken, at the talks in 1994, when the EU appointed representatives to solve the Cyprus problem. (“About Cyprus”, 2001)

2.4. UN’s reunion Plan for Cyprus

In 2002 the UN conducted face-to-face meetings between the leaders of the two communities and the UN suggests a Plan for the reunion of Cyprus. As Vassiliou (2003) said, the main aims of the plan were:

“The establishment of a new state of affairs in Cyprus with the creation of a United Cyprus Republic, which would be an independent state with a federal government and two equal federated constituent states”

On the 24th of May 2004 the people of Cyprus (Greek and Turkish), rejected the UN plan in a referendum, with the majority of people voting NO for the acceptance of the plan. (Appendix, table2) The Greeks Cypriots reject the plan because it was very against their interest and gave the minority to Turkish-Cypriots equal powers to the majority of the population. Moreover the plan was mainly in favour of the Turkish-Cypriot population, leaving the Greek-Cypriots without any guaranties for their future safety.

2.5. Cyprus becomes a Member of the European Union

On the 1st of May 2004, fireworks lit up the sky in the 10 new EU member countries. (The Scotsman, 2004) Cyprus was one of those. Finally, after 14 years Cyprus become a member of the EU. Joining the EU can lead Cyprus to big benefits, although there are some disadvantages in its membership.

2.5.1. Advantages

The benefits to Cyprus as a whole (both parts) from membership of the EU are quite substantial, as long as the whole population of the island can gain benefit from political, economic, social, environmental and other advantages. Though it must be remembered that membership of the European Union requires obligations and commitments and a period of adjustment that will certainly cause some problems, overall, however, there is little doubt that the advantages of membership far exceed the disadvantages. (Sertoglu & Ozturk, 2003)

2.5.1.1. Political benefits from the entry to the EU

As a consequence of this entry major political benefits can be found. The political advantages from entry to the EU are extremely important for both the two main communities of the island and for the state itself. The most important political advantages are:

The relation between the Greek and Turkish communities will be improved. Cyprus by participating in the mechanisms developed by the EU will develop its relationships with Turkey. (Office of the Coordinator for Harmonisation, 2003) After the invasion of Cyprus by Turkish troops in 1974 and the occupation of more than 30% of the land of the island by the Turkish troops, there was no any particular relation between the two communities, because no one could cross the boards. Cypriots after the opening of the boards, they are worried with the idea that Turkish-Cypriots are walking in the same streets with them. Although until today there weren’t any serious problems between the two communities. EU is going to help this situation and will build bridges between people and communities. (Office of the Coordinator for Harmonisation, 2003)

The ability to participate as a voting member in the decision-making processes of the EU, so as to able to influence decisions that affect Cyprus and the whole of Europe.
The provision of EU citizenship to the citizens of Cyprus is a very important aspect. People are now able to travel through Europe without passport and any other obstacles. Many fees have been decreased, with an example the University fees, and this will lead many Cypriots to study abroad to the EU.

2.5.1.1. Economic advantages of Membership

With the entry of the whole island to the EU, except for the political benefits, the economy of the island will be get better, the most important economic advantages are:

Firstly, Cyprus’ goods and services have access to a huge single market in Europe; this is expected to lead to an increase of Cyprus’ exports to the EU countries.
The participation of Cyprus in the Union’s internal market, an area where free movement of goods, services, and persons are ensured, will make Cyprus’ goods more popular in the EU market. In addition Cyprus could export a larger amount of products to the EU, and this will lead to an additional external income to the Cypriots producers. (European Commission, 2004)
In addition, there will be share in the growth and development of the EU economy.
With the adoption of euro (in 3 years) and participation of Cyprus in the Economic and Monetary Union (EMU), is expected to lead to a general rise in the prices of services and goods and lower interest rates, thus resulting in stronger confidence of the economic actors, increased investment and higher growth rate. (Office of the Coordinator for Harmonisation, 2003) Furthermore, participation in the EMU should boost Cyprus’ exports, considering the reduction of transaction costs which will result from the ending of both the exchange risk and the cost of converting the local currency to euro in transactions with other members of EMU. (Office of the Coordinator for Harmonisation, 2003)

A whole range of advantages are expected, covering most areas of business and life in general. The laws and standards will in most cases be upgraded and modernized. Since the biggest percent of the current laws were written in 1960 and there are no laws in many areas, with an example that there are no any laws to protecting frauds and copywriting in the wide world web. Social programs will be brought into line with the high standards of the Social Charter; while there will be a greater emphasis on improvement in the environment (as Cyprus is weak in matters of safety standards and quality improvements). Overall, a significant improvement in the quality of life is anticipated, especially in the less developed parts of the island which will be eligible for massive EU assistance. (European Commission, 2004)

2.5.2. Disadvantages

However, very strong disadvantages might arise for the citizens of Cyprus. Numerous disadvantages in all domains, economic, political and social, are creating many disputes to the whole community. In addition many business and small organizations of the island have doubts and worries about joining the EU.

2.5.2.1. Economic disadvantages

First of all, a big affection is going to occur on the balance of current transactions. With the accession of the Cyprus to the Economic Numismatic Union (ENU) and the establishment of euro (€) as a common European currency, there is a possibility of harm to the economy of Cyprus. This will be probably the consequence as long as the Cypriot pound is already very strong currency in the international market. Although no one started to worry or making conjectures.
A big influence is also going to occur in the trading balance of the island. This balance has a direct relation to imports and the exports of the country (Citrus fruits and potatoes are Cyprus’ main exports and raw materials are the main imports). The lack of hard industry (e.g. a car industry) is apparent in Cyprus because of a lack of basic raw materials. As a result of the entry to the EU the imports will have sharp rise because of the duty free goods but because of the lack of strong industry, the competition will be unequal. (European Commission, 2004) In my opinion, the economic or political strategy to avoid there undesirable symptoms is good to predict some improvement to the tertiary sector (Tourism) in the island.
The most important negative factor that will be created is the closing of small businesses (most industries in Cyprus are consisted from many small businesses); because apparently they will not have the power to fight the “monsters” (international chain companies) which offer all the facilities that a customer needs. Nevertheless, many small companies may try to amalgamate to hit the market, but the possible consequence of this amalgamation is the collisions that might be created as a result of economic benefits they are going to have. (European Commission, 2004) Thus, many conflicts are possible to create between these situations.
An additional problem that may exist with the entry of the international organizations, are the exported products as well as the services. Are Cyprus’ products and services really strong enough to compete with the foreign ones? This is the big question that also creates big worries for the citizens of Cyprus. The massive teams of people from other countries that are going to come and live permanently in the island, they might replace Cyprus’ work force because of their greater experience in the new businesses and corporations; as a consequence there may be a rise of unemployment among the local citizens. (Office of the Coordinator for Harmonisation, 2003)

2.5.2.2. Political disadvantages

The most important political reason for membership is the process of the relations between the two societies, the Greek and the Turkish. Moreover, these worries grew when the Turkish government invaded some Greek islands (Imia islands) in 1996 and the European Union “accepted” that invasion without any interference. (“About Cyprus”, 2001) Therefore, the Greek-Cypriot community has all these worries until today because of those events that occurred over the last thirty years and there is much diffidence because of the passive reaction from the UN occurred on those two specific occasions. In my opinion Greek-Cypriots and Turkish-Cypriots can live together, in peace, the main problem are the settlers from Turkey where no one want them in Cyprus (even the Turkish-Cypriots).

2.5.2.3. Social disadvantages

The last aspect that is going to be affected by the joining is the social area. As a student in the UK which is one of the most important active members in the EU, I personally can see some social problems that exist because of the regulations of the EU. Considering the social advantages that there are in the UK, the same or similar problems in society are going to exist in Cyprus after the entry to the EU. The most important social disadvantages are:

The permanent location in Cyprus of citizens from other countries-members in Cyprus. This will transform Cyprus from a small enclosed society into a multicultural country. The results of a multicultural and multi-religion country are usually negative. First of all, the national identity and history of the country will be gradually lost as long as people from all over Europe are going to live permanently there. Moreover, the differences between the religions, especially between the Christians and the Muslims, may create many conflicts and arguments. It is very important to notice that especially in Cyprus because of the occupation the prejudice against Muslims are probably much more than any other European country.
The possible increase of the crime rate is another social problem. According to recent statistics, Cyprus has a crime rate equivalent to one sixth (1/6) of the average rate of other European countries.(Statistical Service of the Republic of Cyprus, 2004) People rarely lock their car, leave windows and doors open and this all due to the friendliness and honesty of the local population. Because of the increase of population and the different races that may come to live in the country the possibility of and the worries about the rise of crime rate is obvious. That worry exists because Cypriots in general are very peaceful people and the rate of criminals (murders, kidnaps etc) in the country is very low.

3. Conclusion

3.1. The key points of the project

As we can notice from the elements above, with the entrance of Cyprus to the European Union many advantages and benefits have been gained that will help the whole country to improve and develop in many areas. Furthermore, and most important with the entrance in the EU we are all expecting a final settlement for the existing problem of the division of the country. On the other hand, many disadvantages in all domains are creating many disputes with the entry and many people are talking about it everyday.

3.2. A personal View

The entry to the EU is a very good opportunity to keep and continue all these good relations and co-operations we have had until today. In addition, with the entry in the EU will demonstrate all the respect and gratitude for all the help that the EU gave to the island until today, to help it to improve and develop.

As far as the negative points that I referred to before are concerned, I believe that all countries passed through these disadvantages after joining the EU. Therefore with a little more organization and support the community will be able to overcome all those disadvantages as well as be able to overcome all the prejudice that exists. Furthermore, since the creation of the EU a lot of developments occurred, and as a result it is more able to support its members.

4. Appendix

Image 1

The geographical place of Cyprus. A bridge building role between Europe, Asia and Africa

Source: http://www.reachtheworld.org/imgs/med_map.jpg

Image 2

The 37% of the island occupy by Turkeys military since 1974.

Source: “About Cyprus” 2001.

Image 3

The buffer zone (between Greek Cypriots and Turkish-Cypriots) controlled by the UN.

Source: http://www.btinternet.com/~andy.brouwer/cyprus.htm

Table 1

Destination of Cyprus’ Exports and Imports between 1993-1997 Trade with the EU

We can see from this table, the Cyprus’ Exports and Imports with the EU between the years 1993-1996, the balance between Cyprus and the EU worsens for Cyprus in the last decade.

Source: European Commission (1998)

Table 2

The Results of the referendum on the 24th of May 2004.

North Cyprus

South Cyprus

Source: http://www.cyprusive.com/default.asp?CID=519

5. Refferences

Atasoy, S., (2003). Cyprus, Turkey, and the EU: The Need for a Gradual Approach. Brown Journal of World Affairs, 10(1), 257-268.

Bahcheli, T., (1988). Greek - Turkish Relations since 1955. Boulder: Westview Press.

Bowes, G., (2004). Escape: News: Cyprus: direct flights to North?: Tour firms predict end of embargo. The Observer, 2 May, p.4

Cyprusive, North Cyprus web Guide, (2004). United Cyprus Referendum Results 24 April 2004 [online]. Cyprus: Cyprusive. Available at: http://www.cyprusive.com [14 June 04]

Day, E., (2004). At midnight on Friday, 10 new nations joined the EU. By 1am yesterday, the first busloads of joyful East Europeans had arrived at Dover. The Sunday Telegraph, 2 May, p.8

Evriviades, M., (2003). Europe in Cyprus: The Broader Security Implications. Brown Journal of World Affairs, 10(1), 241-257.

European Commission, (2004). The European Commission's Representation in Cyprus [online]. Brussels: European Commission. Available at: http://www.delcyp.cec.eu.int/en/index.html [02 May 04].

Ministry of Finance, (2004). Statistical Service of the Republic of Cyprus [online] Nicosia: Ministry of Finance. Available at: http://www.mof.gov.cy/mof/cystat/statistics.nsf/index_gr /index_gr?OpenDocument [10 June 04]

Nugent, N., (2000). EU Enlargement and ‘the Cyprus Problem’. Journal of Common Market Studies, 38(1), 132-151.

Office of the Coordinator for Harmonisation, (2003). Office of the Coordinator for Harmonisation [online]. Cyprus: Office of the Coordinator for Harmonisation. Available at: http://www.eu-coordinator.gov.cy/harmonization/harmonization.nsf/dmlindex_en/ dmlindex_en?opendocument [02 May 04]

P.I.O. (2001), About Cyprus. Cyprus: Press and Information Office.

Press and Information Office, (2003). Press and Information Office [online]. Nicosia: Ministry of the Interior. Available at: http://www.moi.gov.cy/moi/pio/pio.nsf/index_en/ index_en?opendocument [02 May 04]

Sertoglu, K., Ozturk, I., (2003). Application of Cyprus to the European Union and the Cyprus Problem. Emerging Markets Finance & Trade, 39(6), 54-71.

The Scotman, (2004). Fireworks light up the skies of 'new' Europe [online]. Scotland: The Scotman. Available at: http://thescotsman.scotsman.com/international.cfm?id=495352004 [12 June 04]

Vassiliou, G., (2003). Cypriot Accession to the EU and the Solution to the Cyprus Problem. Brown Journal of World Affairs, 10(1), 213-222.

Yesilada, B., Sozen, A., (2002). Negotiating a Resolution to the Cyprus Problem: Is Potential European Union Membership a Blessing or a Curse? International Negotiation, 7(2), 261-286.

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