No deal on Turkish Cypriot trade and aid

The British Presidency of the referred the two stalled EU regulations for financial assistance to Turkish Cypriots and direct trade to a working group of the Council and the Committee of the Permanent Representatives on Monday.

The two regulations, designed essentially to reward Turkish Cypriot for voting in favour of reunification of the divided island, have been on ice for over a year. Greek Cypriots have blocked the direct trade regulation and the Turkish Cypriots have been reluctant to accept the financial aid regulation without the direct trade regulation.

Cypriot Foreign Minister George Iacovou told the meeting that on the direct trade regulation, there were serious problems of legal nature, referring to the opinion of the Legal Service of the Council of Ministers.

Iacovou, as a way of criticizing the British praised Luxembourg for its efforts to find a solution during its presidency that ended in June.

At that time the Greek Cypriots would reportedly allow Famagusta port in the north to open to international traffic in return for the abandoned town of Varosha.

Iacovou accused Britain of preventing such an agreement,

“We want the money to be given, (to the Turkish Cypriots), we have our own plans to help”, Iacovou said, adding “Turkish Cypriots have greatly benefited from the government’s attitude towards them”.

Iacovou said that there is also the possibility of withdrawing the regulation for direct trade and if this happens, then the financial regulation should be immediately adopted.

It is not clear whether the issue will be raised again during the General Affairs Council meeting of 12 December which will be the last COREPER meeting under the British Presidency.