Substantive Cyprus-Eu Negotiations 4th EU-Cyprus Intergovernmental Conference (19/5/1999)

Substantive accession negotiations continued with satisfactory results between the Head of the Negotiating Team for Cyprus/ Accession to the European Union, Mr George Vassiliou, and representatives of the 15 EU member-states at the 4th Intergovernmental Conference held in Brussels on 19 May.

The Conference took place in a very good climate and the participants showed a great deal of understanding.

During the Conference negotiations covered the chapters on Company Law, Consumer and Health Protection, Customs Union, External (Trade) Relations and Competition.

Mr George Vassiliou expressed his satisfaction with the successful conclusion of negotiations on the chapters on:

1. Consumer and Health Protection,
2. Customs Union, and
3. External (Trade) Relations.

In his statement before the representatives of the "15", Mr Vassiliou also expressed Cyprus/ readiness to do its utmost in order to continue with its harmonisation programme successfully.

The negotiations on the chapters which remain open will continue with the submission of additional information by the Cyprus Government so as to conclude negotiations on these.

During the Conference there was optimism that by the next Intergovernmental Conference which will be held at Foreign Minister level on 22 June, negotiations on the chapter on Telecommunications will also be concluded.

At a press conference in Nicosia after his return from Brussels, Mr Vassiliou said that with the conclusion of the chapter on Telecommunications, a total of 10 out of the 14 chapters under examination will be considered as closed for Cyprus. This puts it ahead of the other candidate countries in terms of progress achieved so far.

Explaining Cyprus/ positions on the chapters which remain open, Mr Vassiliou said that with regard to Company Law, the question of shipping companies submitting annual accounts will have to be dealt with.

As regards Competition, the chapter remains open as it is connected, among other things, with the status of the Cooperatives. Mr Vassiliou said that Cyprus seeks to safeguard the special social character of the Cooperative Movement which receives limited support by the State.

Concerning the chapter on Fisheries, which was examined by the 3rd Intergovernmental Conference in April, negotiations are continuing with respect to Cyprus-registered fishing vessels operating in the high seas. The EU would like to see the activities of these ships come under control.

Apart from these three chapters, the chapter on Common Foreign and Security Policy also remains open. This chapter was examined during the Austrian Presidency in the second half of 1998, but negotiations were not concluded for any of the applicant countries.

Mr Vassiliou also said that Cyprus was preparing to submit its position papers by the end of May on four more chapters which will be examined in the next 6-month term under the Finnish Presidency. These are the chapters on the Free Movement of Capital, Energy, Economic and Monetary Union (EMU) and Social Policy.

Mr Vassiliou made special reference to two of these chapters, namely the Free Movement of Capital and Economic and Monetary Union, stressing that important political decisions are required.

The question of liberalisation of interest rates falls within the chapter on the Free Movement of Capital, while the containment of the fiscal deficit comes under the chapter on the EMU.

The fiscal deficit, Mr Vassiliou said, is today about 6%. This far exceeds the corresponding Maastrict criterion which is 3%.