Brussels, 07/07/2004 (Agence Europe) - The package is recognition of the needs of the northern part of the island, not recognition of a State. As he presented to the press the measures proposed on Wednesday by the European Commission to put an end to the economic embargo on the northern part of the island, European Enlargement Commissioner Günter Verheugen was careful to insist on this particularly sensitive point. The European Union does not intend, either directly or indirectly, to recognise the Turkish Republic of Northern Cyprus, he said. Today's measures do not give substance to this hypothesis in any way, he added, excluding all risk of this.
There are already forms of cooperation with the authorities of the northern part of the island and no-one has ever said that this is recognition of a State, the Commissioner answered to questions on future cooperation between the European Commission and the Turkish Cypriot authorities amounting to EUR 259 million in aid over the next three years. The fact that the Chamber of Commerce of the northern part will be establishing certificates of origin would not have consequences either. In the same way, for the development of direct trade between the north of the island and the European Union, the choice of Article 133 relating to customs agreements between the EU and third countries would be the only possible base and would not imply any recognition. Mr Verheugen said he knew that the government of Cyprus does not interpret this the same way, and recognised the hostility of the Cypriot Republic, which has been a member of the EU since 1 May this year and which only governs the Greek southern part of Cyprus, to the establishment of direct trade links. The aim of the proposals that the Council had requested of the Commission after the referendum on reunification of 24 April, approved in the north but rejected in the south, is to "put an end to the isolation of the Turkish Cypriot community and to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community", Mr Verheugen said. As the number of Greek Cypriots find the cost of the island's reunification "too high", everything is being done, he said, to bring the cost down while helping the economic situation in the north.
Trade between the northern part of the island and the 24: Within the limit of the quotas set annually by the Commission, all products other than animals and animal products may enter the Community market from northern Cyprus free of customs duties. These products should be accompanied by a certificate of origin delivered by the Chamber of Commerce of northern Cyprus, certifying that they have been produced or substantially processed in northern Cyprus. The Commission would be responsible for verifying the authenticity of the certificates and the conscientiousness of the work of the Chamber of Commerce.
It could grant preferential conditions for agricultural products eligible for rebates for exports or intervention measures. On the other hand, as long as European standards are not reached, animals and animal products can not be exported to the European Union. The draft regulation includes strict rules on exporting plants and vegetable products, which will be checked by European experts at the production, harvesting and procession stages. This text is expected to be adopted by qualified majority.
The question of re-opening flight paths with the north of the island and Member States "is in the hands of Member States" and is not a competency of the Commission underlined Commissioner Verheugen. Each Member State can decide individually.
Trade between the north and south of the island:
the Commission is proposing as expected, a regulation that outlines implementation of free movement between north and south of the island, which is in force since 1 May after the Council ruled on the principle after the referendum (EUROPE 30 April p 4).
EUR 259 million in aid up to 2006, 6 million for this year: this aid will facilitate trade from the northern part of the island and strengthen its economic integration through financial assistance of €259 million. They also set specific rules for goods crossing the green line separating the Greek Cypriot and the Turkish Cypriot communities (such as water treatment in Nicosia) and support for civil society projects. It will also be used for facilitating alignment in the north on Community legislation, with the TAIEX instrument used in candidate countries. Funds could benefit public bodies and associations. For distributing aid on the ground the Commission is going to call on the European Agency for Reconstruction but there were other options, explained the Commissioner. The European Commission was particularly vague on the question of requests of Greek and Cypriot European Commissioners, always with the idea of not creating the impression of setting up a representation of the Commission that some may consider as recognition of the Turkish Republic of Cyprus.
Out of the EUR 259 million packet for 2004-06, the Commission is suggesting that 6 million is released this year and 1.16 million can be spent. This 6 million would be used above all for feasibility studies for projects in 2005, EUR 114 million, then in 2006 for 139 million. Adoption of this proposal for 2004 needs unanimity at the Council and co-decision with the European Parliament.