Breakthrough on aid for Turkish Cypriots

THE GOVERNMENT yesterday welcomed a decision by COREPER (Committee of Permanent Representatives) to release 139 million euros of EU aid to the Turkish Cypriot community, in what came as a surprise development.

The issue has been stalled for two years due to disagreements on whether the aid package should be decoupled from a sister proposal for direct trade made by the European Commission in the wake of the 2004 referendum on the Annan plan.

The impetus for that proposal was that the Turkish Cypriot community should not be left in the lurch after the Greek Cypriot rejection of the UN blueprint. Had the Greek Cypriots joined the Turkish Cypriots in voting ‘yes’ to the Annan plan, a reunited Cyprus would have gained full membership of the EU in May 2004. As it stands, the EU’s acquis communautaire remains suspended in the Turkish Cypriot-controlled north.

Due to the impasse, 120 million of the 259 million euro aid package was lost at the turn of the year because the money had to be allocated by December 31, 2005.

But yesterday COREPER gave the go-ahead for 139 million euros to be disbursed for the development of infrastructures in the north. The initiative was taken by Austria, which currently holds the rotating EU presidency.

The draft proposal will need to be approved by the European Council, which convenes on Monday. The Turkish Cypriot side, which wanted the package to be coupled to direct trade with the EU, will only receive the aid package if it accepts being bound by the conditions outlined.
However, the cover note prepared by the EU body decoupled the two issues, to the satisfaction of the Cyprus government. Moreover, the document linked future progress with Turkish Cypriot concessions on Varosha, Famagusta Port and a moratorium on the sale of Greek Cypriot properties.

News of the decision was yesterday greeted with scepticism in the north. Rasit Pertev, Undersecretary to the ‘Prime Minister’, told the Mail the Turkish Cypriot side had “concerns” over the cover note accompanying the agreement.

“We have reservations that the Cyprus government is trying to bring the EU into solving the Cyprus problem… and that they are using the contents of secret discussions between Greek and Turkish Cypriot delegations and making references to Varosha and joint running of Famagusta port.”

He added: “Any ambiguity in the cover note needs to be interpreted in a way that strengthens the UN role in solving the Cyprus problem.”

Meanwhile, Government Spokesman George Lillikas made a laconic statement, saying the administration was pleased with the outcome.

“We have always wanted the Turkish Cypriot community to receive the funds,” he noted.

And Permanent Representative to the European Union Nicos Emiliou described the development “as the first tangible result” of President Papadopoulos’ recent visit to Vienna for talks with Austrian leaders.

Nevertheless, there is still room for negotiations as COREPER’s preliminary agreement has to be ratified by the European Council by unanimous decision.

Of course, that means the agreement could fall through if any member-state decides to veto it.