Turkish Cypriots lose EU aid

Half of the EUR 259 mln in aid that was earmarked for Turkish Cypriots just before the Greek Cypriots joined the EU has now been lost thanks to sour relations between the two sides.

The financial aid package, when first put forward after the Turkis Cypriots accepted an UN-backed plan to reunite the island and Greek Cypriots rejected it, was supposed to be linked to the opening up of Turkish Cypriot trade to the EU.

However, unrestricted trade was anathema to the Greek Cypriots, who interpreted it as the implicit recognition of an occupation regime, and who used their membership of the EU to block it.

On the other hand, aid without trade was anathema to Turkish Cypriots, who insisted that the EU should keep its promises.

The EU finally decided to decouple the two proposed regulations earlier this month but the time has run out for around half of the aid and continuing arguments will no doubt see the remainder disappear before it can be used.

The EUR 259 mln itself would have amounted to around 30% of annual GDP in the north, but was less significant in practice given the USD 200 mln or so granted by Turkey to the north each year.

The (Greek Cypriot) Republic of Cyprus government blamed the Turkish Cypriots for losing aid amounting to EUR 120 mln.

“Our position has not changed but the position of the other side must change and it should abandon its will of political upgrading with the connection of the two regulations,” said the government spokesman Kypros Chrysostomides.