This is a report in the Financial Times regarding the trade and aid regulation.
Greek Cypriots block EU plan to help Turkish community
By George Parker in Brussels and Vincent Boland in Ankara
Published: October 16 2004 03:00 | Last updated: October 16 2004 03:00
A European Union bid to end the economic isolation of Turkish northern Cyprus has been scuppered, after the Greek Cypriot government won a protracted battle with its EU partners.
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The Greek Cypriot authorities in Nicosia blocked a move by the European Commission to allow their Turkish counterparts to trade freely with the outside world.
The initiative has now been effectively shelved, after Britain, Germany and Sweden finally accepted they could not get the Greek Cypriots to move.
The Greek Cypriot "No" has infuriated the Commission, which wanted to bring the Turkish community into the economic mainstream.
But it revealed the power wielded by the internationally recognised Greek Cypriot government, which joined the EU on May 1, and now effectively holds a veto over moves to help the 200,000 people of the north.
The issue was settled this month after six separate meetings between EU ambassadors in Brussels, which saw Britain leading the fight on behalf of the Turkish Cypriots.
Under the deal agreed in Brussels, to be endorsed by EU foreign ministers on November 22, the Commission will shelve its plan to allow northern Cyprus to trade directly with the outside world.
Although a new timetable for progress will be agreed, Nicosia can ultimately deploy a veto, because it says the trade package would bestow international recognition on the north, occupied by Turkish troops since 1974.
The shelving of the trade deal meant Greek Cypriots were able to endorse a separate Commission plan to pump €259m ($321m, £179m) of aid into northern Cyprus to modernise the impoverished enclave.
The money was made available by the EU as a reward to the Turkish Cypriots, who voted Yes to a United Nations plan to reunite the island in a referendum on April 24. The plan was rejected by Greek Cypriots, now full members of the European Union, by a margin of 3 to 1 leaving the Turkish occupied north in the international wilderness.
The Nicosia authorities have also insisted on conditions on where money can be spent in the north, so that EU aid can only go to territory not owned by Greeks before 1974.
That means that only 15-20 per cent of the Turkish enclave can receive EU money, leaving the European Commission with a headache in how to distribute the cash.
"It's going to be difficult," said one official. "But the Greek Cypriots have us over a barrel - they are in the EU now, and there is nothing we can do."
The Commission will now aim to fund projects not tied to land, such as training schemes and agricultural machinery grants.
Britain and the other supporters of the Turkish community backed off partly to avoid antagonising the Nicosia government.
The Greek Cypriots, like the other 24 EU members, have a veto when the union decides whether to start accession talks with Turkey at a summit on December 17. Nicosia has already made it clear that its support should not be taken for granted. Additional reporting by John O'Doherty
http://news.ft.com/cms/s/8a6a8d00-1f15-11d9-9015-00000e2511c8.html
This is an example of how the EU works! Ignore a member state at your peril. This should act as a warning to Turkey.
On the other hand I am sad that the TC's won't benefit as much. But does it matter?
Recently, the Turkish Cypriot minister responsible for the economy said that the per capita income in the north had risen from $4000 to $7500 in the space of a few months! On the back of the $2bn+ property transactions in the past few months no doubt, but I do still wonder how much of that cash is staying in Cyprus!
To those espousing unity, perhaps they should allow the port at Famagusta to be opened jointly by the GC's and the TC's as a good will towards BOTH communities. This surely will foster a spirit of cooperation between the two of us to the benefit of both of us. Is this such an 'outrageous' demand?