Finnish initiative
TNA: What do you think of the initiative on the Cyprus issue by European Term President Finland?
SARRIS: I think in the context of our commitment of looking at every possible way to reunify the island it certainly is a positive step. Finding any sustainable solution to the Cyprus problem will benefit all Cypriots, both Greek and Turkish. So any initiative that moves us in that direction and removes the obstacles to free the areas that are still militarily occupied will be looked at with a lot of interest.
TNA: So the initiatives suggested by the Finnish presidency sound acceptable to you?
SARRIS: That's not an area that I have expertise in, but we've expressed our ideas before. For example, Famagusta is an occupied city which certainly must be liberated and returned to its lawful inhabitants as soon as possible. So if it is possible via such an initiative, this can be evaluated as a positive development.
TNA: Do you think any solution can be found before the end of this year?
Additional protocol
SARRIS: It's hard to say, but we all want to find a solution. But now it's time to see the political will on the Turkish side [Ankara] to live up to its commitments.
TNA: In line with the additional protocol, do you think Turkey should open its harbors and airports to Greek Cypriot vessels? How do you see Turkish Chief EU negotiator Ali Babacan's argument that some legal experts say there's no strict necessity to do so, because due to quota reasons, Turkish vessels are kept out of entering Austria, Belgium and Italy too?
SARRIS: EU criteria clearly enough say that you can't discriminate against any ships due to the flags they fly. So this is an issue that is clearly causing enormous economic difficulties for us. I firmly believe that Greek Cypriot vessels should freely get into Turkish ports like any other ports in the world. Believe me, no one will lose anything if this happens, the only outcome would be gains on both sides.
TNA: Why this is so important for Greek Cypriots?
SARRIS: The Union established some years back a farsighted initiative called "Motorways of the Sea," which is intended to concentrate flows of freight on seas based on logistical intermodal routes in such a way as to improve existing maritime links or to establish new viable regular and frequent maritime links for the transportation of goods between member states. The extension of Motorways of the Sea to connect the European Union with the neighboring countries in the Mediterranean, Black Sea and Baltic Sea regions has been identified as a priority for transport facilitation between the EU and these neighboring regions.
The smooth flow of goods, people and investments across the emerging Euro-Mediterranean free trade area necessitates a well-functioning multimodal transport system. More efficient transport would help Eastern Mediterranean countries to attract foreign direct investment, encourage exports and participate in increasingly complex cross-border supply chains. However for the concept of Motorways of the Sea to develop into a reality it's not only necessary to create the right infrastructure and to minimize formalities, but it's essential to remove obstacles to the free flow of commerce and shipping. Turkey is knowingly opposing the development of Motorways of the Sea by preventing ships under [Greek] Cypriot flag or having last port of call at [Greek] Cypriot ports from entering Turkish ports. Such measures constitute serious obstacles and distortions in the direction of free trade within the EU, and certainly have a serious negative affect on the private and public interests of EU ship owners and ship managers too.
TNA: After the April 2004 referendum on the Annan plan -- which the Greek Cypriots rejected, and the Turkish Cypriots approved -- the Greek Cypriots have been rewarded, while on the contrary the Turkish Cypriots have been punished. Where do things go from here?
Turkish occupation
SARRIS: The Turkish side has been punished only by the Turkish occupation; there's no other reason for this result. If they're looking for a scapegoat for the current situation, they must accept that this is due to the Turkish occupation. In accordance with the plan I can only say that the plan was unsustainable economically and politically. But anyway, now this is history, so we still hope that we will find a solution sooner or later which will be to the benefit of both [groups of] Cypriots.
TNA: You say that the Annan plan was unsustainable, but don't you think the ongoing sanctions on the Turkish side despite the commitments of the EU after the referendum to lift them are also unfair?
SARRIS: Everyone should realize that the island is occupied illegally. I want to remind you that properties [in the TRNC] once belonged to the Greek Cypriots. The occupation creates such undesired and negative conditions on the island.
TNA: Is that true that thousands of Turkish Cypriots are looking to become Greek Cypriot citizens because they see their future there? Because of the ongoing embargo and deteriorating conditions on the Turkish side?
SARRIS: I think both Turkish and Greek Cypriots see their future in a unified island and now what is seen on the island is a tragedy. When you look at the man on the street, on the mutual level, the people are communicating, cooperating, and it will really be up to the Turkish leaders the way we proceed. It will be their political courage to recommend a solution on the island that will benefit both sides.
Erdogan and Talat disappointed us
TNA: How do you see the stand of the TRNC government towards a solution on Cyprus?
SARRIS: I must tell you frankly that we are rather disappointed not to see both [Turkish Prime Minister Recep Tayyip] Erdogan and [TRNC President Mehmet Ali] Talat's governments to be more supportive for a sustainable solution on the island. Actually we were expecting them to act differently and more positively. We don't understand the reasons for such a disappointing stand. I think the internal pressure doesn't allow things to go in the right direction. Since the beginning, we tried hard to persuade them towards cooperation and solutions, which doesn't seem to be working.
TNA: By "internal pressures" that kept Erdogan and Talat from finding any solutions, do you mean the Turkish Armed Forces?
SARRIS: Absolutely I mean the army. Any solution seems to be passing through significant reduction and withdrawal of the Turkish Armed Forces from occupied areas.
Unification is our future
TNA: Comparing the per capita income of both sides, how do you see both sides' welfare on the island?
SARRIS: We're very happy to see the fast growth rate in the occupied areas [TRNC], which is partly due to the fact of economic integration. We're very much looking forward for the gap to be filled between the Turkish and Greek Cypriot sides, at least to be narrowed. We're happy to see this is moving in the right direction. We believe that we will find a solution eventually. So any sustainable solution, I mean politically and economically, will create such a goal.
TNA: Any last words to your colleagues in Turkey or on the island?
SARRIS: I would like to send a message to both. This is an invitation to Turkish Cypriots to join us in the very exciting future of Cyprus in the EU in Europe, where it will unify our economy and our people and our institutions. We can still keep our individual characteristics, but at the same time we will share the benefits of unification.
TNA: Have you ever been to the Turkish side?
SARRIS: Some time ago, yes. I see the people look the same, feel the same, laugh the same, and cry the same so we're all the same people and sooner or later we'll get back to unification. You, please, if you ever come to the island, try to get in touch with me.
TNA: If I can get past the barriers at the buffer zone, because the Greek Cypriots don't allow us to enter without visas.
SARRIS: Give me a call, then.
HABERIN KUTUSU
Michalis Sarris in brief
Sarris was born in Nicosia in 1946. He received his bachelor's in economics in the London School of Economics, specializing in monetary theory and policy. He continued his studies at Wayne State University in the United States, where he obtained his doctorate in economics.
In 1972 he joined the research department of the Central Bank of Greek Cyprus. His work focused on policy analysis and overall economic conditions on the island to guide the management of the monetary sector. In early 1974, he moved to the Bank of Greek Cyprus, where he was responsible for setting up the bank's mechanism and developing its capacity for evaluating the economic and financial viability of its large lending operations.
Beginning in 1975, Michalis Sarris worked at the World Bank. At various stages during his tenure at the World Bank, he was responsible for financial and monetary matters concerning Africa, Latin America and East Asia.
He retired from the World Bank at the end of 2004 and subsequently served on the Board of Directors of the Laiki Group in Greek Cyprus.
In September 2005 the Greek Cypriot leader Tassos Papadopoulos appointed Sarris minister of finance.
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