Cyprus Negotiations Pause As EU Entry Talks Hot Up

by Lorys Charalambous, Tax-News.com, Nicosia

25 February 2002

The pace of EU negotiations over Cyprus is hotting up, both because entry negotiations are reaching a critical stage, and also because of increasing concern among EU member states, both existing and prospective, that the Cypriot/Turkish imbroglio should be resolved before the island's entry to the EU.

This week, the largest-ever EU negotiating team, with 25 members, will arrive on the island, led by EU Cyprus team leader Leopold Maurer. The EU team will remain until February 28th, addressing the five chapters not yet closed, which include some of the most contentious areas: Taxation, Competition, Agriculture, Regional Policy, and Financial and Budgetary Provision. All the ones with the most money attached, in other words!

Meanwhile, UN Special Envoy Alvaro de Soto has been briefing Secretary-General Kofi Annan on the outcome of the first round of talks between Greek Cypriot President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, which ended last Tuesday. They are due to resume on Friday after a break for religious holidays, and not much has emerged about the first round, except that the Greek Cypriot side has apparently put forward a demand that just 24% of territory should be allocated to the Turkish side; currently the Turks occupy about 37% of the island.

"We believe that any talk on territories is futile and unnecessary as long as our sovereignty is not accepted", said Mr Denktash, "If they want territory from us this must mean that they accept that we are holding this territory and that it belongs to us."

Despite talk about the inevitability of Cyprus's entry into the EU, whatever the outcome (or none) of current talks, some EU nations probably have serious doubts about allowing Cyprus to accede to the Union in anything like its current form.

During talks last week between German Foreign Minister Joshka Fischer and Cyprus Foreign Minister Yiannakis Cassoulides the German side made it very clear that it hopes for and expects a quick political solution of the problem, and called for a 'constructive attitude' on the part of both parties.

Mr Fischer stuck to the party line, saying that the EU would stick to its position as laid down at the Helsinki summit in 1999 that there were no preconditions for entry relating to the island's partition, saying: "I do not dare under any circumstances doubt the wisdon of the state and government leaders at Helsinki", leaving it open for others to do so, braver than him.

Mr Cassoulides supported Joshka Fischer's interpretation of the EU position, and it is understood that he had discussions with German officials on technical arrangements that might be needed should Cyprus join the Union before the current partition is resolved.

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