Cyprus and EU Commission disagree over Turkish Cypriot package

Neither side is ready to back down

CYPRUS and the European Commission are at loggerheads over the 259 euro million financial package pledged to assist the Turkish Cypriots, according to yesterday’s Politis.

The paper reported that the dispute over the package has reached dangerous proportions with the Cyprus government blocking direct assistance because of its refusal to accept a five-point plan aimed at modernising parts of the occupied north and making it environmentally safer since the land in question belongs to Greek Cypriots.

The Commission and a number of powerful member states are accusing the government of holding back works that could benefit the health and quality of life of both communities, the report said.

As part of the financial package, the EU executive has drawn out a plan to modernise five units in the north, including the electric power plant in Kyrenia. All five units are situated on Greek Cypriot land, leading the government to seek protection of property rights in exchange for approval of the modernisation works. The government has reportedly asked for a timeframe to be laid down for compensation of the legal title owners of the land.

The climate is described as explosive, with neither side ready to back down. The Commission wishes to give direct assistance to modernise old and rundown units that pose health and environmental risks. The government refuses to give the green light because of the problem of title ownership and seeks to have a say in all projects, according to Politis sources.

The package can only be approved by unanimous decision within the European Council, giving Cyprus a veto right. But the matter is intrinsically tied to the pending issue of direct trade with the north as the battle has yet to be decided on whether the two regulations will be voted on separately or not and whether Cyprus will have a veto right on direct trade.