| Documents European Commission: «Agenda 2000» (15.7.1997)
IV. CYPRUS
In July 1993 the Commission delivered a favourable opinion
on Cyprus’s application for membership. The European Council subsequently reaffirmed on
several occasions, most recently at Florence in June 1996, that accession negotiations
with Cyprus should start six months after the conclusion of the IGC.
1. ECONOMIC DEVELOPMENT
In its 1993 opinion the commission noted the Republic of
Cyprus’s advanced level of development and economic dynamism. this still holds good with
full employment (2.5% jobless rate), moderate inflation (3%) and public debt standing at
53% of GNP in 1996. The southern part of the island should not encounter any major
problems in adopting the acquis communautaire or in coping with competition inside the EU.
However, there is a need to align regulations and practices in the financial sector more
fully with those which apply in the union and to reinforce co-operation and controls in
all areas of justice and home affairs.
In northern Cyprus the trends observed by the Commission in
1993 remain unchanged. Average income per capita is about ECU 3 600 per annum, one third
of that of the southern part of the island. The economy is becoming increasingly dependent
on the public sector, which ultimately means financial transfers from Turkey. Investments
remain low despite its human and natural resources.
2. PROSPECTS FOR A POLITICAL SETTLEMENT
The 1993 Opinion noted the continuing division of Cyprus.
Efforts since then, chiefly under UN auspices, to work towards a political settlement, in
accordance with various UN proposals, have not achieved much progress. The UN conducted
intensive contacts with the leaders of the two communities during the first half of 1997
which have now led to face to face talks between them under UN auspices. There is a chnace
to make progress before the Presidential elections due in Cyprus in February 1998.
The shape of a settlement, establishing a bicommunal and
bizonal federation, is well established, and supported by the Union. A number of options
for constitutional and territorial arrangements to implement it have beenexplored, and the
beginnings of a possible consensus have sometimes been discernible. But there has not
hitherto been sufficient incentive for the two communities to reach agreement.
The Union is determined to play a positive role in bringing
about a just and lasting settlement in accordance with the relevant United Nations
Resolutions. The status quo which is at odds with international law, threatens the
stability of the island, the region and has implications for the security of Europe as a
whole. The Union cannot, and does not wish to, interfere in the institutional arrangements
to be agreed between the parties. But it is available to advise on the compatibility of
such arrangements with the acquis of the Union. The prospect of accession, whose political
and economic advantages are now becoming clear to Turkish cypriots as well as to Greek
Cypriots, can in itself provide such an incentive.
3. RELATIONS WITH THE EUROPEAN UNION
The timetable agreed for accession negotiations to start
with Cyprus means that they could start before a political settlement is reached. The
Union shares the view expressed by the UN Secretary General, that the decision to open
negotiations should be seen as a positive development which could promote the search for a
political settlement.
Negotiations on accession would be facilitated if
sufficient progress is made between the partie sin contacts this year under the auspices
of the United Nations to allow representatives of the Turkish Cypriot community to be
involved in the accession process. Agreement on a political settlement would permit a
faster conclusion to the negotiations. If progress towards a settlement is not made before
the negotiations are due to begin, they should be opened with the government of the
Repbulic of Cyprus, as the only authority recognised by international law.
VII. FINAL RECOMMENDATIONS
- The Commission invites the Council to endorese the approach
to the challenge of enlargement set out in this communication.
Enlargement, as the Amsterdam Euorpcan Council indicated, is an inclusive process
embracing all of the applicant countries. The overall process includes the opening of
accession negotiations with individual countries, according to the stage which each has
reached in satisfying the basic conditions of membership and in preparing for accession;
and an accompanying framework which consists of the reinforcement of the pre-accession
strategy for countries of Cental and Eastern Europe, as well as the creation of a
multilateral forum of cooperation in the form of a European Conference.
- As regards the opening of accession negotiations, the
European Council has already concluded that they should commence with Cyprus six months
after the end of the Intergovernmental Conference.
- Concerning the countries of Central and Eastern Europe, the
Commission has now presented in its Opinions an objective analysis, in the light of the
criteria laid down by the Copenhagen European Council. The Commission considers that none
of them fully satisfy all the criteria at the present time. However, nine countries
satisfy the political conditions, while certain countries have made sufficient progress
towards satisfying the economic conditions and those related to the other obligations of
membership.
In the light of its analysis, and in accordance with their respective merits, the
Commission consdiders that Hungary, Poland, Estonia, the Czech Republic and Slovenia could
be in a position to satisfy all the conditions of membership in the medium term if they
maintain and stronglys ustain their efforts of preparation.
The Commission underlines that a decision to open accession negotiations simultaneously
with the countries mentioned does not imply that negotiations will be concluded
simultaneously. The timing of the conclusions of accession negotiations will depend in
large part on the accomplishment of the further efforts required from each applicant
country in the respective opinions.
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