Cyprus within the EU – reflections on twenty years of membership – Cyber Tech

Cyprus was one among ten states that joined the European Union on 1 Might 2004. Fadil Ersozer explains that whereas EU accession has supplied some clear benefits for Cyprus, the Turkish-Cypriot north of the island has remained largely excluded from the total advantages of membership.

Cyprus’ accession to the EU, alongside 9 different international locations on 1 Might 2004, was a historic second framed by rhetoric in regards to the “reunification of Europe” and ending “the divisions of the Chilly Warfare”. Nonetheless, this milestone was overshadowed by the island’s entry as a de facto divided nation, with a longstanding frozen battle.

This atypical enlargement led to the suspension of EU legal guidelines within the north, restricted the EU’s engagement with the Turkish Cypriot group and created important disparities within the EU trajectory of the island. Over the previous twenty years, the Greek Cypriot-led Republic of Cyprus within the south has skilled fast improvement and financial development, regardless of challenges just like the monetary disaster, and an elevated sense of safety.

Nonetheless, whereas Turkish Cypriots profit from EU citizenship rights individually, the Turkish Cypriot-led internationally remoted north has remained largely excluded from the total advantages of EU membership and illustration in EU establishments, ensuing of their marginalisation over time. Regardless of quite a few efforts to resolve the battle and unite the island earlier than and after the accession, the division has endured, resulting in entrenched political divisions. It has additionally exacerbated financial disparities, complicating the general narrative in regards to the EU membership as a unifying power.

Cyprus within the EU

Over the previous twenty years, the Republic of Cyprus has been a web beneficiary from EU membership and has skilled sturdy financial efficiency, boasting an annual development price of 4% and witnessing a six-fold improve in commerce. As a member state, it acquired substantial investments to spice up its development and revenue in direction of the EU common.

For example, the EU supplied €1.7 billion beneath its Cohesion Coverage and €98 million beneath the Juncker Plan between 2004 and 2020. This era has seen transformative adjustments, together with infrastructure improvement, public sector modernisation and analysis and innovation developments. Cyprus emerged as a pretty vacation spot for buyers and companies, with EU accession benefiting all sectors of life, from well being to agriculture, tourism and fisheries.

Within the early years of membership, there was widespread enthusiasm and optimism among the many Greek Cypriot public, with roughly 54% supporting the EU. Nonetheless, the monetary and banking disaster within the late 2000s introduced important challenges, disrupting the beforehand optimistic narrative.

The Republic of Cyprus underwent an financial adjustment programme imposed by the EU and IMF between 2013 and 2016, which included strict austerity measures in areas like public administration and taxation. Whereas these measures have been meant to revive monetary stability and promote sustainable financial development, they led to widespread frustration amongst many Cypriots. Throughout that point, assist for the EU plummeted to simply 13%, coupled with the delegitimisation of the EU within the Cypriot media.

Regardless of this setback, the legacy of the monetary disaster served as a litmus check, demonstrating the Greek Cypriots’ dedication to European integration. With the tip of Troika supervision in 2016, Greek Cypriots transitioned to a state of “comfortable Euroscepticism”, characterised by criticism of particular EU insurance policies quite than the European venture as a complete. Regardless of the sooner opposition, 82% of Greek Cypriots favoured Eurozone participation in 2019. Throughout this era, the Republic of Cyprus continued to obtain EU funds, akin to €150.8 million beneath the EU analysis and innovation programme Horizon 2020. These efforts helped the EU rekindle its attraction to the Greek Cypriot group, boosting public belief to 54% by 2019.

EU funding

The Republic of Cyprus continued to learn from substantial EU assist all through the COVID-19 pandemic and the power disaster. The nation acquired important funding, together with €603 million in loans for its Non permanent Wage Subsidy Scheme (SURE instrument), €112 million in 2021 beneath REACT-EU, and €92 million from the Simply Transition Fund in 2021. These funds aimed to mitigate the affect of the pandemic and assist a inexperienced and digital economic system.

Moreover, the NextGenerationEU programme beneath the long-term EU funds for Cyprus (2021-2027) allotted €1 billion in grants and €1.5 billion in loans throughout numerous sectors, specializing in financial and social resilience, inexperienced and digital transitions, and addressing frequent European challenges. Moreover, the REPowerEU initiative goals to diversify the EU’s power sources and cut back its power dependency on Russia, following the Russian invasion of Ukraine. It funds formidable power initiatives, together with €100 million for the EuroAsia Interconnector venture, designed to attach Cyprus, Crete and Israel to the EU electrical energy community and promote renewable power manufacturing.

In mild of the deliberate investments, the Greek Cypriot economic system is forecasted to develop within the coming years, with a strong labour market and lowering unemployment charges. Nonetheless, whereas Greek Cypriot GDP grew by 31% between 2003 and 2018, it nonetheless lags behind the EU common, standing at €33,400 in comparison with the EU common of €35,500 in 2022. Euroscepticism can also be appreciable, with simply 39% supporting the EU, under the EU common of 47% in 2023.

Cyprus can also be grappling with broader problems with corruption, cash laundering and a scarcity of transparency in its public sector and banking system, complicating its relations with the EU. The 2022 Eurobarometer survey revealed that 94% of Cypriots imagine corruption is widespread within the nation, considerably surpassing the EU common of 68%. Transparency Worldwide’s 2023 Corruption Perceptions Index (CPI) ranks Cyprus 49^th out of 180 international locations. Inside this context, the nation has confronted criticism for serving as a tax haven and a gateway for doubtful monetary transactions, the circulate of Russian cash into the nation, the usage of shell corporations for illicit actions and “promoting” EU citizenship by means of funding.

Turkish Cypriot illustration

The Republic of Cyprus has additionally considerably influenced European insurance policies and initiatives because the nation’s EU accession, although not all the time cooperatively. For instance, the EU was “decided to place an finish to the isolation of the Turkish Cypriot group”, demonstrated by its approval of the UN-sponsored Annan Plan in 2004. Nonetheless, the Republic of Cyprus blocked proposals just like the “Direct Commerce Regulation”, arguing it might legitimise the “unlawful state” within the north.

To partially deal with these challenges, the EU initiated the EU Assist Programme for the Turkish Cypriot Group in 2006, offering monetary and technical help for financial and social improvement, and selling financial integration and future reunification of the island.

Though these efforts have partly improved dwelling circumstances within the north, they continue to be incomparable to the transformations skilled within the south. The EU’s failure to distribute membership advantages extra equitably has undermined its picture within the north. Nonetheless, the EU has grow to be a big consider Turkish Cypriot political life, persevering with to supply a framework for reunification, and plenty of Turkish Cypriots see their future inside the EU.

A notable improvement occurred in the course of the 2019 European Parliament elections, with the election of Niyazi Kızılyürek, a Turkish Cypriot candidate from the Greek Cypriot communist social gathering AKEL. Whereas this was a optimistic step for Turkish Cypriot illustration in EU establishments, the June 2024 European Parliament elections have been a setback. Neither Kızılyürek nor the opposite two Turkish Cypriot candidates have been elected, muting the Turkish Cypriot voice within the European Parliament.

An apolitical YouTube prankster, Fidias (19.4%), and the ultranationalist social gathering ELAM (11%) swayed the Greek Cypriot votes, every profitable a seat within the European Parliament, consistent with developments in different elements of Europe. Consequently, AKEL misplaced one among its two MEPs (22%), and the socialist-Greek Cypriot nationalist EDEK misplaced its single seat, whereas the centre-right DISY (25%) retained its two seats, and the centrist DIKO (10%) stored its one.

Turkish Cypriot turnout additionally remained exceptionally low at 5.5%, failing to make the anticipated affect on the end result. This is because of many Turkish Cypriots seeing these elections, held solely within the south, as unrepresentative or irrelevant to their lives. They’ve demanded that two of Cyprus’ six seats within the European Parliament must be allotted to them for truthful illustration.

The EU as a international coverage amplifier for Cyprus

EU membership has additionally granted the Republic of Cyprus veto energy over EU enlargement, creating challenges for Turkey’s accession. The Cyprus drawback turned a key consider Turkey-EU relations, performing as membership conditionality. Turkey’s refusal to formally recognise the Republic of Cyprus and open its ports led to the European Council’s choice to freeze eight chapters of membership negotiations in December 2006, illustrating the affect of Cyprus’ EU membership on European integration.

Moreover, the Republic of Cyprus has developed regional cooperation initiatives, which have amplified its international coverage priorities and created pressure with Turkey concerning their opposing claims of “Unique Financial Zones” within the contested waters of the Jap Mediterranean. These initiatives embody the EU Med group (Med-9), an alliance of 9 EU international locations bordering the Mediterranean, and the EastMed Fuel Discussion board, a regional cooperation initiative on power and safety.

Reflections on twenty years of membership

EU membership has introduced important advantages and challenges for Cyprus. The EU’s affect and picture in Cyprus haven’t all the time been uniformly optimistic. Nonetheless, they’re topic to political and financial developments and the EU’s skill to ship its guarantees, as seen within the strict austerity measures and the exclusion of Turkish Cypriots.

EU accession has not signalled the tip of political and financial transformations, as membership might require expensive reforms throughout troublesome occasions. EU membership will not be a panacea to all issues, as demonstrated by Cyprus’ endemic challenges akin to corruption and the continuing division between the north and south of the island. As a substitute, it serves as a platform for steering, studying and cooperation on frequent challenges.

Subsequently, it’s essential for Cyprus to work with the EU to deal with its continued points, strengthen its place inside the EU, keep away from marginalisation and uphold its dedication to European integration. Moreover, the expertise of Cyprus exhibits the necessity for a cautious EU enlargement course of that may overcome the restrictions of the EU’s establishments and initiatives. Reinventing EU enlargement coverage is essential to enhancing EU actorness in an more and more aggressive and conflict-prone world atmosphere.

This text is a part of a collection organised by Eli Gateva on Rethinking Europe’s East-West Divide – 20 Years because the Huge Bang Enlargement

Word: This text provides the views of the creator, not the place of EUROPP – European Politics and Coverage or the London College of Economics. Featured picture credit score: rarrarorro / Shutterstock.com