Cyprus allocates EUR 30 mln to boost bicommunal cooperation

The Cyprus government announced measures for a total amount of 30 mln euros to further improve economic development and cooperation between Greek Cypriots and Turkish Cypriots, something that could boost the local economy and help the reunification of the country.
The first project, approved by the Cabinet, concerns ways to help set up small ventures between Greek Cypriots and Turkish Cypriots, in specific selected regions, for the period 2007-2013, with grants totaling 7 mln euros. A ceiling of 200,000 euro has been set for each selected small business.
The second project provides grants to businesses, in specific selected areas, to upgrade the technology of ventures between the two communities, develop trade and the manufacturing of agricultural products with grants amounting to 27 mln euros, for the period of 2007-2013. A ceiling of 500,000 euro has been set for each selected business.
Finance Minister Michalis Sarris and Director of the President’s Diplomatic Office Tasos Tzionis announced the measures at a press conference at the Finance Minstry and expressed hope that Turkish Cypriots will respond and benefit from these measures.
In his remarks, Tzionis rejected claims that Turkish Cypriots are “isolated” and that there is an economic war between the two communities, noting that Turkish Cypriots have fallen into a “self-isolation” due to the policy of the Turkish Cypriot leadership, adding that they must decide that they need to cooperate with Greek Cypriots.
To implement the two projects, a Planning Committee will be set up, to be chaired by the Permanent Secretary of the Finance Ministry, which will examine applications, while an advisory committee will be set up, comprising two members, to be appointed by the Planning Committee, preferably two Greek Cypriots and two Turkish Cypriots.
Applications must be submitted by 30 September 2008. Businesses seeking grants for investment will be examined and approved by the end of 2008.
Finance Minister Sarris assured that his ministry will examine the applications quickly and will be flexible, noting that these projects are an “effort to strengthen the economic and trade relations between Greek Cypriots and Turkish Cypriots through two generous programmes with serious incentives which we hope will promote joint ventures and will be the prelude to the economic and territorial reunification of Cyprus”, Sarris added.
According to Tzionis, these measures are part of an overall package of measures which include the establishing of a fund to finance projects for civil society (i.e. cooperation between Greek Cypriot and Turkish Cypriot NGOs) with the amount of 2 million euros and will be presented by the Interior Minister. Two more regulations have been approved to allow for the trade of honey and fish among the products which can move from the occupied areas to the free areas of the Republic through the Green Line Regulation and to help set up a company to distribute Turkish Cypriot products.
Sarris noted that the government prepared the plans in the hope that there will be interest, adding that “if for political reasons Turkish Cypriots are not allowed to make use of them, then that is another issue”.
He said “our position is that the infrastructure of the Republic of Cyprus is always at the disposal of the Turkish Cypriots. The economic development of the Turkish occupied areas is something which we pursue and we are interested in merging the two economies.”
Answering questions, Tzionis said Turkish Cypriot leader advisor Rashid Pertev has rejected government measures, acting on the basis of some reports which were inaccurate.
Sarris said that trade through the Green Line regulation is a lot less than anticipated, around 400.000 euros per month, with 300.000 euros coming from Turkish Cypriot products and only 100.000 from Greek Cypriot products.
“We estimate, on an annual basis, that the income in the occupied areas from the free areas comes to 100 million pounds per year, which amounts to 15% of the GDP of the occupied areas”, he added.