Greek Cypriots Threaten Legal Action Over EU Trade Plans For Northern Cyprus

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

12 July 2004

The Greek Cypriot government on Thursday hit out at EU plans to provide a comprehensive package of aid and trade measures which aim to facilitate trade from the northern part of the island and strengthen its economic integration through financial assistance, thereby helping to end the isolation of the Turkish Cypriot community.

The two key measures contained within the EU package were financial assistance for the Turkish-occupied section of the island to the tune of EUR259 million, and provisions for the facilitation of direct trade from the the northern part of Cyprus. The proposal offered a preferential regime for products originating in the North, entering the Customs Territory of the EU.

However, the latter provision in particular has angered the Greek Cypriot government, which has threatened to take its case before the European Court of Justice (ECJ) if it cannot dissuade the EU from bypassing the legally-recognised authority of the Greek Cypriot authorities.

Speaking to the media last week, Greek Cypriot government spokesman, Kypros Chrysostomides explained that although the plan contained positive aspects, it also contained elements which could entrench the divisions between the two communities still further, and pledged that:

"We will argue every detail of the measures before the court."

EU Enlargement Commissioner, Guenter Verheugen meanwhile has denied that the EU plan amounts to a recognition of the Turkish Republic of Northern Cyprus (TRNC), arguing that it is merely intended as a reward for the Turkish Cypriot support of the so-called Annan Plan to reunify the island.

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