Early European Orientation
Cyprus became a full member of the European Union on 1 May 2004 when the fifth EU enlargement took place. The Accession Treaty had been signed a year earlier at the Stoa of Attalos in Athens on 16 April 2003.
Accession was the culmination of a long and healthy relationship which goes back to 1972 when an Association Agreement was signed between Cyprus and the European Economic Community (EEC). It is worth noting that, for the first time, Cyprus expressed an interest in becoming an associate member of the EEC in 1962. This early expression of interest, right after Cyprus acquired its independence, was largely the result of Britain's first application for membership of the EEC. The heavy dependence of the Cyprus economy on exports to Britain and the prospect of losing the preferential Commonwealth tariff rate prompted the Cyprus Government to seek an institutionalised arrangement with the EEC. Following the withdrawal of the British application in 1963, because of the French veto, Cyprus interest remained dormant until 1971 when it was reactivated almost simultaneously with the renewed efforts of Britain to join the EEC.
The Association Agreement between Cyprus and the EEC, which was signed in December 1972 and went into effect in June 1973, provided for the gradual elimination of trade obstacles for industrial and agricultural products. The elimination of customs and other restrictions on trade would lead to a customs union after a ten-year transitional period that was divided into two successive stages. The first stage would be completed by June 1977 and the second stage five years later.
The Turkish invasion of Cyprus in 1974, however, and its disastrous consequences for the economy of the island led to a delay in the implementation of the Association Agreement. After successive extensions of the first stage, a Protocol for the implementation of the second stage of the Association Agreement was signed in 1987 and went into effect in 1988. It laid down the terms for the gradual establishment of a customs union by the year 2002.
Application for Membership
The close relationship established between Cyprus and the EEC with the signing of the 1987 Customs Union agreement, coupled with other developments in Europe and the world, encouraged the Government of Cyprus to apply for full membership of the Community in 1990.
This was, of course, facilitated by the impressive bouncing back of the Cypriot economy from the setback caused by the Turkish invasion.
Three years later, in June 1993, the European Commission issued its Opinion on the Application by the Republic of Cyprus for Membership (hereafter Opinion), confirming the island's European character and vocation and concluding that it was eligible to be part of the Community. The Opinion (par. 10), however, pointed out that there were some problems resulting from the de facto division of the island, which needed to be addressed. It noted in particular that the fundamental freedoms laid down by the [EEC] Treaty, and in particular freedom of movement of goods, people, services and capital, right of establishment and the universally recognised political, economic, social and cultural rights could not today be exercised over the entirety of the island's territory. These freedoms and rights would have to be guaranteed as part of a comprehensive settlement restoring constitutional arrangements covering the whole of the Republic of Cyprus.
It should also be noted that the application for membership was submitted by the Government of Cyprus representing the population of the entire island.
This was pointed out in the Opinion (par. 8) by stressing that when presenting its application for accession, the government of the Republic of Cyprus, recognised by the European Community as the only legitimate government representing the Cypriot people, addressed the Community on behalf of the whole of the island.
Substantive Talks
In October 1993, the Council of Ministers of the Community endorsed the Opinion and welcomed its positive message, reconfirming that Cyprus was eligible to become a member. The Council also supported the Commission's proposal for close cooperation with the Cyprus Government in order to facilitate the economic, social and political transition aiming at eventual integration of the island into the EU. To this end, the Council invited the Commission to open substantive discussions with the Government of Cyprus to help it begin preparations for the accession negotiations which would follow later. In November 1993 substantive talks between the Commission and the Government of Cyprus began and continued until 1995 when they were successfully completed. For the purposes of the substantive talks, twenty-three working groups and dozens of sub-groups involving hundreds of people were formed on the Cypriot side. These groups were composed of public servants and delegates of semi-government agencies and the private sector. The talks covered a broad range of issues and were conducted primarily at the technocratic level. Their primary objective was to help the Cypriot authorities familiarise themselves with the acquis communautaire and help Cyprus start harmonising its legislation and policies with those of the Union. The acquis communautaire is the legal order and political framework within which the EU operates and consists of the following:
l the contents, principles and political objectives of the EU Treaties,
l the legislation adopted in implementation of the Treaties and the jurisprudence of the Court of the European Communities,
l the declarations and resolutions adopted in the EU framework,
l the international agreements and agreements between EU member-states connected with the Community's activities.
The Corfu Decision
In June 1994 the European Council, at its meeting in Corfu, examined Cyprus-EU relations and concluded that an essential stage in Cyprus' preparations for accession could be regarded as completed and that the next phase of enlargement of the EU would include Cyprus. This was confirmed by the European Council at its meetings at Essen (December 1994), Cannes (June 1995), Madrid (December 1995) and Florence (June 1996). At Cannes, it was also reaffirmed that negotiations on the accession of Malta and Cyprus would begin six months after the conclusion of the 1996 Intergovernmental Conference. At the European Council meeting at Madrid in December 1995, it was also decided that Cyprus, together with the associate countries of Central and Eastern Europe, would be briefed regularly on the progress of discussions at the Intergovernmental Conference and would also be able to present its positions at meetings with the Presidency of the European Union. The Intergovernmental Conference which began in March 1996 was completed with the signing of the Amsterdam Treaty in October 1997, which eventually went into effect on 1 May 1999.
In the meantime, at the meeting of the Council of General Affairs (Ministers of Foreign Affairs) on 6 March 1995, and at the 19th meeting of the Cyprus-EU Association Council in June 1995, it was decided that a pre-accession structured dialogue at various levels would be established between Cyprus and the EU. At the March meeting, Greece lifted its veto and agreed on a customs union to be established between Turkey and the EU beginning 1 January 1996. At the same meeting, Greece also lifted its veto and allowed for the implementation of the Fourth EU-Turkey Financial Protocol which provided for considerable financial aid to Turkey.
It is also worth mentioning that in Agenda 2000, the Commission Communication which was issued on 15 July 1997 and outlined the broad perspectives for the development of the EU and its long term policies, it was reconfirmed that accession negotiations with Cyprus would start six months after the conclusion of the Intergovernmental Conference. It was also clarified that accession negotiations could start before a political settlement of the Cyprus problem was reached. It was stressed that if progress towards a settlement was not made before the negotiations were due to begin, "they should be opened with the Government of the Republic of Cyprus, as the only authority recognised by international law."
The European Council at its meeting in Luxembourg in December 1997 discussed also the Cyprus problem and stated its position as follows:
The accession of Cyprus should benefit all communities and help to bring about civil peace and reconciliation. The accession negotiations will contribute positively to the search for a political solution to the Cyprus problem through the talks under the aegis of the United Nations which must continue with a view to creating a bi-communal, bi-zonal federation. In this context, the European Council requests that the willingness of the Government of Cyprus to include representatives of the Turkish Cypriot community in the accession negotiating delegation be acted upon. In order for the request to be acted upon, the necessary contacts will be undertaken by the Presidency and the Commission.
Accession Negotiations
Following the decision of the European Council in Luxembourg in December 1997, accession negotiations began on 30 March 1998, without the participation of the Turkish Cypriots. It should be noted, however, that the Government of Cyprus and the EU made efforts to include a Turkish Cypriot delegation on the negotiating team, but the Turkish Cypriots refused to participate. Following the initial launching of accession negotiations in March 1998, bilateral intergovernmental conferences followed, as part of the accession negotiations with Cyprus as well as with the other candidate countries.
Accession negotiations were conducted at the technocratic as well as the political level and covered all chapters of the acquis communautaire. They were successfully completed in October 2002 and it was confirmed that Cyprus fulfilled the Copenhagen political and economic criteria. The criteria for accession to the EU were defined by the European Council a few years earlier at its meeting in Copenhagen in December 1993 as follows:
Membership requires that the candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for the protection of minorities, the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union. Membership presupposes the candidate's ability to take on the obligations of membership including adherence to the aims of the political, economic and monetary union.
After the completion of accession negotiations, the European Council, at its meeting in Copenhagen in December 2002, reconfirmed its strong preference for the accession of a united Cyprus. It stressed that the European Union would welcome and accommodate the terms of a settlement in the Treaty of Accession in line with EU principles. It was also decided that in the absence of a settlement, the Republic of Cyprus would become a member of the EU, but the application of the acquis communautaire in the northern part would be suspended.
Accession Treaty
Despite intensive efforts to reach a settlement before the signing of the Accession Treaty on 16 April 2003, no settlement of the Cyprus problem was reached. Therefore, a special Protocol on Cyprus was attached to the Treaty clarifying the status of the northern part of the island which is occupied by Turkey. The Protocol provides the following:
Article I: (1) The application of the acquis shall be suspended in those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise full control.
(2) The Council, acting unanimously on the basis of a proposal from the Commission, shall decide on the withdrawal of the suspension referred to in paragraph 1.
Article II: (1) The Council, acting unanimously on the basis of a proposal from the Commission, shall define the terms under which the provisions of EU law shall apply to the line between those areas referred to in Article 1 and the areas in which the Government of the Republic of Cyprus exercises effective control.
The signing of the Accession Treaty in April 2003 was a conclusive, collective, political and legal confirmation that Cyprus is part of the European family of nations. On 14 July 2003, the Parliament of Cyprus unanimously ratified the Accession Treaty which went into effect on 1 May 2004. Ever since, Cyprus has been a full EU member state actively participating in the process of creating "an ever closer union among the peoples of Europe." In January 2008 Cyprus joined the Economic and Monetary Union and introduced the euro as its currency.
Facing the Challenge of Accession and Membership
The above presentation of major developments in Cyprus-EU relations shows that accession to the EU has been one of the greatest challenges and achievements for Cyprus after it became independent in 1960.
Membership of the EU is a continuous challenge entailing rights, obligations, privileges and burdens. Any country that seeks membership to the EU must meet several conditions and criteria. Among these are European identity, democratic institutions, respect for human rights, protection of minorities, an open market economy, a satisfactory level of economic development, and the ability to adopt the acquis communautaire. The Republic of Cyprus had no problem in meeting any and all of these conditions. This was confirmed as early as in 1993 by the Opinion of the Commission which clearly stated that the Community considered Cyprus eligible for membership. Throughout the period of accession negotiations and finally with the signing of the Accession Treaty it was reconfirmed that Cyprus meets the political and economic criteria of membership.
When it comes to democracy and human rights, Cyprus subscribes to the same fundamental principles and values as the EU and its member-states. This is evidenced by the stable democratic multi-party system of government which guarantees an open and fair political process to individuals and organised groups. The political parties on the island represent and reflect a broad range of views and positions covering the entire ideological spectrum. It can also be stated that one of the main characteristics of the political culture of the island is the overarching loyalty and commitment to democracy shared by all political forces. This commitment reflects a firm popular belief that only democratic societies based on pluralism, respect for human rights, and the rule of law can protect and promote freedom, justice and social progress. Cyprus is also known for its open and efficient economic system which is based on a commitment to the concept and principles of a market economy with free competition. In recent years the island has enjoyed a stable economic growth at high rates, which compares favourably with that of other EU member states. Unemployment has been negligible and foreign labour is imported to cover shortages in some sectors, such as tourism and construction. The inflation rate has been low and within acceptable range. As mentioned earlier, in January 2008 Cyprus joined the Economic and Monetary Union and introduced the euro as its currency.
With regard to adopting the acquis communautaire, measures were taken well before accession to meet EU standards and the EU repeatedly confirmed that Cyprus did a good job in that respect. A problem-free accession and membership of the EU is also facilitated by the Eurocentric foreign policy followed by Cyprus since the collapse of the former Soviet Union and the subsequent end of the Cold War. Pro-European feelings have always been quite strong among the population who have a strong sense of belonging to Europe and believe that the future of a united, secure and prosperous Cyprus lies in its participation in the European integration process. This is true for both Greek Cypriots and Turkish Cypriots. This is also a view shared by all political parties on the island.
Cyprus Can Make a Contribution
EU membership is a two-way relationship. Cyprus has a lot to gain from it, but it can also make a contribution to the creation of a united Europe that will enjoy prosperity and security. The geographic location of the island is of considerable symbolic as well as substantive significance as it constitutes Europe's furthermost outpost in the Eastern Mediterranean. Because of its strategic position, Cyprus can make a contribution to the creation of a European security system that will safeguard the defence and security interests of the EU in the region.
It should also be pointed out that Cyprus has excellent relations with all the countries of the Middle East. In this regard, it has become an economic, political, and cultural link between the EU and that important geopolitical region. As a member of the EU, Cyprus can serve as a bridge for peaceful cooperation among the peoples of Europe, the Mediterranean basin and the Middle East.
Along the same lines, it can be added that many European and multinational firms have chosen Cyprus as a location for their regional headquarters. For many of these firms, Cyprus is an obvious choice because of its location, the availability of highly educated managerial and technical staff, the excellent transport and communication networks, and other infrastructure including a legal system based on internationally accepted principles of jurisprudence. These assets are in the direct service of the common and shared interests of the EU and its member states.
As far as European identity and vocation is concerned, there is no doubt that historically and culturally Cyprus is an inalienable part of Europe. All aspects of life on the island - political, economic, social, and cultural - are based on and reflect its European heritage, values and orientation. This is nowhere else stated as clearly as in the 1993 Opinion (par. 44) of the Commission which pointed out that:
Cyprus' geographical position, the deep-lying bonds which, for two thousand years, have located the island at the very fount of European culture and civilisation, the intensity of the European influence apparent in the values shared by the people of Cyprus and in the conduct of the cultural, political, economic and social life of its citizens, the wealth of its contacts of every kind with the Community, all these confer on Cyprus, beyond all doubt, its European identity and character and confirm its vocation to belong to the Community.
Looking Ahead
Although an EU member state, Cyprus is still de facto divided. Membership, however, provides a golden opportunity to resolve the Cyprus problem, reunite the island and take advantage of the European integration process that can offer all Cypriots the security and stability they have been longing for. The EU favours a settlement that will reunite the island and its people under a bizonal bicommunal federation. The institutions, legal order, principles and policies of the EU - the acquis communautaire - can provide a conducive framework in the search for a much needed settlement. European integration has, for half a century, been successful in bringing states and peoples together under conditions of interdependence and peaceful co-existence. Its logic and dynamics have taken over in strengthening the conditions for peace. With the free movement of people, goods, services and capital, old-fashioned conflicts and flare-ups are becoming unthinkable in Europe.
Now it is time for Cyprus also to benefit from the peace dividend of the new integrated and peaceful European order. In that respect, the European prospect and context can be good and promising for all Cypriots as it has been for the other member states and peoples of the EU. After all, the island is too small to remain divided but big enough to accommodate all its people as a reunited EU member state.