NICOSIA: The European Union has budgeted for a possible failure of the forthcoming referenda on April 24 for the reunification of Cyprus - despite heavy pressures exerted by EU states
and the European Commission to persuade Cypriots to say 'yes' to the fifth plan submitted by UN Secretary-General Kofi Annan.
In an exclusive interview with IPS here, ambassador Adriaan van der Meer, head of the European Commission delegation in Cyprus said, "we have been working on two tracks - the 'solution' and the 'no solution' tracks. Figures and the corresponding legal instruments for either outcome have been incorporated into the EU budget."
The 'solution' track has involved an active European Commission interface with the United Nations team working on the UN proposals for Cyprus reunification. A series of technical meetings involving over 40 EC officials have been held at the UN's Cyprus ex-Nicosia airport headquarters.
Cyprus has been divided into a Turkish north and a Greek south since Turkish forces invaded the island following a failed Greek-inspired coup in 1974. A budget of 311 dollars for 2004-2006, for the Turkish Cypriot 'constituent state' of the future United Cyprus Republic proposed under the Annan Plan, has been adopted by the European Council, EU's political decision-making body, van der Meer said.
Under the 'no solution' scenario, the present Republic of Cyprus, an EU member state as from May 1, would receive a total of 800 million dollars for the 2004-2006 period, van der Meer said. That means Cyprus would not become a net contributor to the EU.
The 'solution' scenario allocates an additional 51.5 million dollars to the proposed Greek Cypriot constituent state. The Commission is hosting a pre-donors conference in Brussels April 15 to generate promises of financial assistance to help meet reunification costs implied under the Annan Plan.
"Invitations to 64 countries, including Turkey, have been sent out, as well as to a wide range of international financial institutions such as the World Bank, the Council of Europe Development Bank, and others," van der Meer said.
"Representation will be at ambassador level - at least. The conference plenary will be addressed by the European commissioner for enlargement Gunther Verheugen, and ambassador Alvaro de Soto, the UN Secretary- General's special adviser on Cyprus."
Van der Meer sees the biggest items needing donor aid as rehousing and relocation of thousands of Greek Cypriot refugees from the north and of Turkish Cypriots who would be displaced under the proposed settlement.
The Commission launched a programme in June last year to promote economic development in the northern part and bring it closer to the Union. The EU is also assisting both Greek and Turkish Cypriot small and medium-sized enterprises (SMEs) on both sides of the dividing line.
Panayotic Loizides, secretary-general of the Cyprus Chamber of Commerce and Industry told IPS that relations between the two business communities are now close. "The Greek and Turkish Cypriot chambers of commerce have been developing close links since 2000 by organizing a number of joint seminars and conferences focused on SMEs," Loizides said.
The two chambers issued a joint declaration March 15 supporting the reunification negotiations, and calling for a fully functioning market economy with a minimum of transitional measures and periods. The Chambers also called for wide-ranging harmonisation of economic and social policies which would become the responsibility of the proposed constituent states, not of the federal government.
"New opportunities for Greek Cypriot investment in the north will certainly open up - in particular for developing infrastructure and tourism - although the ban under the Annan proposal on investors buying property to install factories could be a serious obstacle," Loizides said. "Another opportunity would be the reconstruction of our former leading port, Famagusta, which would be brought under Greek Cypriot administration."
But like the EU, Loizides takes a two-track view. "Cyprus already has a sound economy. It would certainly improve with a settlement, but we can carry on without it." -Dawn/The InterPress News Service.
