‘If the EU is serious about the legal theory it is using to promote the Guidelines, it means that the EU violates international law with its grant programs in northern Cyprus. Future challengers to EU policy in northern Cyprus, as well as other occupied territories... will use EU arguments regarding the Guidelines to convince courts to rule that EU policy violates international law.’
This is the part of the document that relates to Cyprus...
The EU directly and indirectly funds Turkish occupation of Northern Cyprus, despite regarding it as illegal.
The EU knowingly and purposefully gives direct grants, funding, etc. to Turkish-occupied Northern Cyprus. The EU does so even though the EU regards Northern Cyprus as occupied (indeed, it is an occupation of an EU member state). The EU’s official policy is that Turkey must end its occupation, and the Turkish invasion was condemned by every international institution from the Security Council on down. Nonetheless, the EU maintains an entire program to direct funds to Turks in Northern Cyprus. They even put out a nice colorful brochure last year.
The grants are pursuant to a 2006 Regulation adopted by the EU to “end the isolation of the Turkish Cypriot community,” and allocated 259 million Euros over five years.12 The program now operates on a 28 million Euro a year allocation (even this small sum is roughly 0.8 percent of Northern Cyprus’s GDP).
EU-funded projects include study abroad scholarships; grants to small and medium-sized businesses for the purpose of developing and diversifying the private sector; various kinds of infrastructure improvements (iterate and telecom improvements, traffic safety, waste disposal, technical assistance to farmers); “community development grants”; funding to upgrade “cultural heritage” sites, etc. The EU program even puts on a musical concert.
Importantly, the vast majority of the Northern Cyprus inhabitants are Turkish settlers who arrived subsequent to the invasion in 1974 and who do not have EU citizenship. Yet, none of the Commission’s grant or contracting documents limit eligibility or participation to EU citizens.
Can one imagine a similar EU project in the West Bank funding Israeli traffic safety, or providing grants to Jewish West Bank residents for study abroad and grants to Jewish-owned small and medium-sized businesses. Could one imagine one funding Jewish cultural events in the West Bank?
The relevant EU resolutions and reports on the EU’s Northern Cyprus program make no mention of the international legal issues arising from this policy, though they do note the “difficult” or “unique” political context.14 One reason the EU gives for the funding is that it is preparing for reunification of an island that is technically in the EU. Yet, it is important to note that funding goes far beyond particular reunification projects, and gives grants to Turkish private business entities, and builds the infrastructure of the occupying government.
Full document here