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

Cyprus was considered one of 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 nations 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”. Nevertheless, 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 vital disparities within the EU trajectory of the island. Over the previous 20 years, the Greek Cypriot-led Republic of Cyprus within the south has skilled fast improvement and financial progress, regardless of challenges just like the monetary disaster, and an elevated sense of safety.

Nevertheless, 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 continued, resulting in entrenched political divisions. It has additionally exacerbated financial disparities, complicating the general narrative in regards to the EU membership as a unifying pressure.

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 progress fee of 4% and witnessing a six-fold enhance in commerce. As a member state, it acquired substantial investments to spice up its progress and revenue in direction of the EU common.

As an illustration, the EU supplied €1.7 billion below its Cohesion Coverage and €98 million below the Juncker Plan between 2004 and 2020. This era has seen transformative modifications, together with infrastructure improvement, public sector modernisation and analysis and innovation developments. Cyprus emerged as a lovely 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. Nevertheless, the monetary and banking disaster within the late 2000s introduced vital 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 had been meant to revive monetary stability and promote sustainable financial progress, 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 take a look at, demonstrating the Greek Cypriots’ dedication to European integration. With the tip of Troika supervision in 2016, Greek Cypriots transitioned to a state of “gentle Euroscepticism”, characterised by criticism of particular EU insurance policies moderately than the European undertaking as an entire. 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 below 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 profit from substantial EU assist all through the COVID-19 pandemic and the power disaster. The nation acquired vital funding, together with €603 million in loans for its Non permanent Wage Subsidy Scheme (SURE instrument), €112 million in 2021 below REACT-EU, and €92 million from the Simply Transition Fund in 2021. These funds aimed to mitigate the influence of the pandemic and assist a inexperienced and digital financial system.

Moreover, the NextGenerationEU programme below the long-term EU price range 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 scale back its power dependency on Russia, following the Russian invasion of Ukraine. It funds formidable power tasks, together with €100 million for the EuroAsia Interconnector undertaking, designed to attach Cyprus, Crete and Israel to the EU electrical energy community and promote renewable power manufacturing.

In gentle of the deliberate investments, the Greek Cypriot financial system is forecasted to develop within the coming years, with a strong labour market and reducing unemployment charges. Nevertheless, 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 be appreciable, with simply 39% supporting the EU, beneath the EU common of 47% in 2023.

Cyprus can be grappling with broader problems with corruption, cash laundering and an absence of transparency in its public sector and banking system, complicating its relations with the EU. The 2022 Eurobarometer survey revealed that 94% of Cypriots consider 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 nations. Inside this context, the nation has confronted criticism for serving as a tax haven and a gateway for doubtful monetary transactions, the circulation of Russian cash into the nation, the usage of shell corporations for illicit actions and “promoting” EU citizenship by way 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 at all times 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. Nevertheless, the Republic of Cyprus blocked proposals just like the “Direct Commerce Regulation”, arguing it might legitimise the “unlawful state” within the north.

To partially handle these challenges, the EU initiated the EU Assist Programme for the Turkish Cypriot Neighborhood 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 residing situations 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 major think about Turkish Cypriot political life, persevering with to supply a framework for reunification, and lots of Turkish Cypriots see their future inside the EU.

A notable improvement occurred throughout 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 had been a setback. Neither Kızılyürek nor the opposite two Turkish Cypriot candidates had 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 traits in different components of Europe. Consequently, AKEL misplaced considered one of 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 influence on the 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 ought to be allotted to them for honest 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 think about 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 determination to freeze eight chapters of membership negotiations in December 2006, illustrating the influence 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 Japanese Mediterranean. These initiatives embrace the EU Med group (Med-9), an alliance of 9 EU nations 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 vital advantages and challenges for Cyprus. The EU’s influence and picture in Cyprus haven’t at all times been uniformly optimistic. Nonetheless, they’re topic to political and financial developments and the EU’s capacity 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 could require pricey reforms throughout troublesome instances. EU membership shouldn’t be a panacea to all issues, as demonstrated by Cyprus’ endemic challenges akin to corruption and the continued division between the north and south of the island. As an alternative, it serves as a platform for steerage, studying and cooperation on frequent challenges.

Due to this fact, it’s essential for Cyprus to work with the EU to handle 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 reveals the necessity for a cautious EU enlargement course of that may overcome the constraints of the EU’s establishments and initiatives. Reinventing EU enlargement coverage is vital to enhancing EU actorness in an more and more aggressive and conflict-prone world setting.

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

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