The real work starts now (Cyprus)

Following the referendums in Cyprus this April, the EU stated along with the US and the UN that the Turkish Cypriots’ isolation would end. Those who expected the immediate fulfillment of this promise thought the delays came not from technical reasons, but rather ulterior motives. Now, however, the package adopted by the EU Commission shows that the work has been carried out as promised and that the policy of isolation has been abandoned. The meaning of this is that direct economic ties will be established between the EU and the TRNC, the TRNC will be able to export goods to EU member countries from its own harbors and sell its products in accordance with a licensed customs tariff, and it will receive EU aid totaling 259 million euros for various projects. The political meaning of the decision is as important as its economic value, as it shows the EU is taking ‘de facto’ notice of the Turkish existence in Northern Cyprus. Actually, as EU officials reiterated, their new stance doesn’t mean that the TRNC is being recognized or will be recognized as an independent state. As EU Commissioner for Enlargement Guenter Verheugen said, the EU’s policy is meant to pave the way for the establishment of a united Cypriot state. However, it’s also clear that the EU’s new strategy is meant to rescue the Turkish side from unjust treatment and give it support.

Obviously the EU’s decision is an important boon for the Turkish side. However, getting the full economic benefits of the decision depends on the policies of the TRNC’s administration and relevant institutions. There are many measures needed immediately so the TRNC can do so. According to TRNC Chamber of Commerce head Ali Erel, a series of reform and harmonization laws should be enacted to boost production and productivity and sharpen the TRNC’s competitive edge. Other key measures include harmonizing agricultural production to EU standards, adjusting energy prices, revising the tax code and creating an attractive atmosphere for foreign capital. Erel told me yesterday that the government and Parliament should start to work immediately towards this end and that early elections should also be held to solve the current political crisis. Indeed, Turkish Cypriots should start their restructuring process as soon as possible so the EU’s decision will have the desired effect on the TRNC’s existence and future. The real work is now starting in the TRNC.”