Address by the President of the Republic Mr Tassos Papadopoulos
at the opening ceremony of the 32nd Cyprus Ιnternational Fair on May 10, 2007

The President of the Republic, Mr. Tassos Papadopoulos, in his address at the opening of the 32nd International Trade Fair, after saying that the Fair has become the island's most important trade and economic yearly event, stated that, according to reports and studies made, the expected economic data will allow us to achieve two targets: the smooth accession of Cyprus to the eurozone on 1st January 2008 and the expansion and improvement of social benefits, especially as regards low pensions.

And added: “The introduction of the euro will not restrain the development course of the economy. On the contrary it will shield and safeguard the stability of the currency, it will protect the economy from exchange rate adjustments and inflationary tendencies and will safeguard the low interests that prevail throughout Europe.”

The President underlined that the Cyprus economy is based on strong foundations, with the rate of growth remaining high standing between 3,5-4%, which is among the highest in Europe.

The dynamism of the Cyprus economy is reflected in the constant creation of more new employment positions. The labour market exhibits conditions of full employment and the unemployment rate is continuously decreasing and has reached low levels, around 4, 5% in 2006.

The per capita income of Cyprus has reached 86% of the EU average and it is the highest among new EU member states.

The rate of inflation remains at low levels, around 2%, preserving the necessary stability of prices and buying force of the consumers and this in spite of the fact that oil prices have gone sky-high.”

President Papadopoulos stated that public deficit has been reduced from 6,3% in 2003 to 1,5% of the GDP in 2006. Public deficit has entered a steady declining course and from 72% of GDP in 2003 today is at 65% with the prospect of being reduced to 61% at the end of 2007.

“The Government fully acknowledges the concerns of the public for possible effects from the adoption of the euro and is taking all commendable measures for their minimization or elimination”, he added.

Referring to the Cyprus question and after welcoming Turkish Cypriot businessmen who for the third consecutive year are participating in the Cyprus International Fair, the President added: “I hope that their participation in this major trade and economic event, in combination with a more effective implementation of the Green Line Regulation, will contribute significantly to the further development of trade and economic relations between Greek and Turkish Cypriots as well as to the creation of the necessary conditions that will truly reunify our country and our people.

The demand for the implementation of the EU Regulation on the so called “direct trade” has no real or substantive economic effect. Suffice it to say that the total amount of exports of the occupied areas to Europe amounts to only eight million euro per year. It is clearly a political demand aiming at serving political expediencies and not at economic benefit. The Cyprus Government’s success, nevertheless, to dissociate the Regulation for direct trade from the Financial Aid Regulation for our Turkish Cypriot compatriots clearly contributes to their financial support.

Addressing myself to our Turkish Cypriot compatriots, I want once again to assure them that we remain firmly committed to a bizonal, bicommunal federation. A solution that will reunify our country, will be workable and viable, a solution that will realise the gradual rapprochement between the two communities in Cyprus as well as the social and economic reunification. A solution whereby no community can impose its will on the other and no community will be able to lead the common state to permanent deadlocks, paralysis and the subsequent dissolution of the state.

It is for this reason we insist on and struggle for the implementation of the 8th July Agreement. Through the implementation of this Agreement we can achieve a momentum in the Cyprus problem, to find the right base for a reunified Cyprus, aiming at a comprehensive solution of the Cyprus problem based on the United Nations Resolutions for Cyprus and on the principles on which the European Union is founded.”

Concluding, President Papadopoulos stated that particularly as regards EU member countries, economic growth has ceased to be the concern of the state alone. It is a collective concern that requires the active participation of all the economic and social partners both at the stage of policy formulation and at the stage of implementation.

“I have no doubt that as, in the past, the Cyprus State Fairs Authority will continue to contribute actively and effectively to the efforts being made to further project the geographical, economic and technological advantages of our country, so as to make Cyprus a truly modern, international business centre, capable of serving the broader strategy of the Government aimed at turning Cyprus into a bridge between the European Union and the wider region of the Middle East and the Arab Gulf.”