Brussels, 03/06/2003 (Agence Europe) - The European Commission will be proposing an aid package of EUR 12 million to Northern Cyprus and the means to relaunch its exports of industrial products to the EU. These measures are aimed at helping the Turkish part of Cyprus catch up economically with the Greek side of the island, in order to facilitate its integration into the EU once the island is reunited. The European Council of Copenhagen had called on the Commission to propose such measures if an agreement on reunification was not forthcoming. At this same summit, the Fifteen decided to accept Cyprus's accession on 1 May 2004, the effects of this accession are still pending as the northern part of the island is still divided.
EUR 12 million for 2003, possibly renewable for 2004, will essentially go to infrastructure projects (EUR 9 million) in Nicosia, Famagusta and Kyrenia (drinking water, waste water treatment etc), a programme for helping SMEs and studies on preparing the economic integration of the island, as well as strengthening civil society. The remaining EUR 3 million will help to "get the EU closer to the Turkish Cypriot community". Information seminars, visits to European institutions, participation of Turkish Cypriots in European programmes etc.
The Commission is also proposing that companies in the north of the island can export to the EU according to preferential tariffs established in the Association Agreement with Cyprus, thanks to certificates of origin issued by the Chamber of Commerce in Northern Cyprus. This will also this side of the island to escape from the impasse created in 1994. In that year, the Court of Justice declared that it was impossible to accept certificates from the so-called Republic of Turkish Republic of Northern Turkey (TRNT) as it was not recognised by the EU. This decision comes from the EU-Cyprus Association Council.
If there is an agreement on reunification of the island, an additional EUR 206 million could be allocated to the northern part of Cyprus for the 2004-06 period in order to help it catch up.