PRESSURE is mounting on the government to perform when it assumes the EU rotating presidency in June next year and take responsibility for key financial services reform and a possible surge of economic migrants from outside the union.
However, the message from the Commission is that help will be at hand during the busy six month term at the head of the EU.
European Commissioner for the Internal Market and Services Michel Barnier – in Cyprus yesterday to meet with the government and key stakeholders said: “The Cypriot presidency in the second half of 2012 is extremely important because the majority of laws will reach legislative maturation during the second half of 2012.”
Barnier said the government faced a “heavy workload” of financial legislative reforms, which are scheduled for final approval during Cyprus tenure.
The key legislative priorities during the period – designed to prevent and make the EU more reactive to future financial crises – are the bank resolution framework and a Capital Requirements Directive (CRD 4), which includes banking corporate governance.
A further nine “very important” pieces of financial services legislation are also due for final approval on Cyprus’ watch including the revision of transparency directive, a securities law, and solvency implementing measures.
Aside from the challenges of financial reform, Barnier said the political turmoil in the Middle East and North Africa (MENA) could also challenge Cyprus during its 2012 presidency, by creating an influx of economic migrants into the union.
Speaking through a translator, Barnier said: “The majority of challenges are challenges for Europe and it is in our interest to confront these challenges together, rather than everyone in his own country.”
During their meeting, Barnier and President Christofias discussed the prospect of protectionism, populism and the risk of member states becoming isolationist in response to this in-migration.
Asked about the future of EU immigration policy, Barnier said that he did not believe countries in the neighbourhood await a “closed door”.
“The solution does not lie in a re-nationalisation of the immigration policy… We need a stronger, more humanitarian immigration policy both for the visas as well as asylum and we should have a single community approach,” he said.
And with its experience of growing from the European Coal and Steel Community in the 1950s, The EU had a wealth of experiences to share with the Arabic speaking world if it could establish a pan-Arabic single market.
“Europe must assist in the creation of this Panarab market to support the economy of these countries… Our obligation is to assist these countries to construct a developmental model”
Finally, Barnier said he had faith in President Christofias to handle the challenges that it would present, and in his ability to implement the financial legislation.
During his one day visit, the commissioner met with President Demetris Christofias, Finance minister Charilaos Stavrakis, DISY President Nicos Anastasiades, the chamber of commerce and the employers association.
