The Commission stands behind you, President of the EU Commission Jose Manuel Barroso assured Cyprus President Nicos Anastasiades the Cypriot Government and the Cypriot people, after the meetings him and the College of Commissioners had on Wednesday with President Anastasiades and his entourage, in Brussels.
Barroso welcomed the successful implementation of the Cypriot adjustment programme and said that the Commission will continue supporting Cyprus’ economic recovery efforts.
He also said that the Commission supports efforts to agree on a joint statement with the Turkish Cypriot side for the commencement of a dialogue to resolve the Cyprus issue.
President Anastasiades reiterated that Cyprus is committed to full implementation of the adjustment programme agreed with the Troika and thanked the Commission for its support. Anastasiades also sought EU’s greater involvement in the process for a Cyprus settlement.
“The President and I held a productive meeting this morning before we joined the college of commissioners and the Cypriot government for a fruitful plenary debate” President of the Commission told a press conference.
Barroso commended President Anastasiades, the Cypriot authorities and the Cypriot people for implementing the financial assistance programme with determination.
“The Commission welcomes the resolve of the Cyprus government and sees with satisfaction their efforts in implementing the programme. The latest assessment by the European Union and the IMF shows that the programme is largely on track, but that risks remain. Fiscal targets are being met and important reforms are being rolled out, but it is essential to keep up these efforts to provide a new basis for future sustainable growth in Cyprus” said EU Commission President.
He noted that one of the top priorities for Cyprus “must be to reduce high levels of unemployment, particularly youth unemployment”, adding that European Union funding “has a key role to play here, and in the overall recovery of the Cypriot economy”.
Barroso said that they discussed precisely what the Commission can do “in concrete terms to support Cyprus”, adding that “it was possible to go more into detail”.
“The extra 200 million euro agreed as part of the future European Union budget for Cyprus will help the country invest in energy efficiency, support SMEs and create jobs, including by contributing to the funding for a youth guarantee” he noted.
He went on to explain that as a programme country, Cyprus can also benefit from special rules for the co-financing of the Structural Funds, for example, special top-ups and urged Cypriot authorities “to make the best use possible of the technical assistance offered through the Cyprus Support Group”, set up earlier this year to help ease the social effects of the crisis in Cyprus and seek new sources of growth.
EU Commission President assured the Cypriot authorities and the Cypriot people that “the Commission stands behind you, ready to support you, as you seek to put the economy back on a more solid footing”.
Barroso and Anastasiades discussed also the efforts underway for a Cyprus settlement.
The EU Commission President said that this has been “a political priority” for the European Commission and, indeed, for himself.
Barroso expressed the view that “now there is a genuine opportunity to reach a solution once and for all”.
He said that the Commission “supports efforts in agreeing on a joint statement with the other party. An agreement on it will facilitate the process of negotiations” he explained, adding that the Commission will continue showing its support and once they see concrete progress, they will “further enhance” –as he said- their “involvement, participation and visibility in the process”.
Barroso referred to the Cypriot President’s commitment to the process, adding that he expects “that fully fledged negotiations will be re-launched soon”.
On the energy issues Barroso said that the Commission “is confident that the recent development of gas can contribute to restore sustainable economic growth and improve the security of energy supply for Cyprus and the whole European Union”.
“We recognise Cyprus` sovereign right to decide on the various aspects of the supply chain, but stress also the need to carry out a proper impact analysis for the investments to be made” he noted.
Cyprus is going through a difficult period and its being tested, said President of Cyprus Nicos Anastasiades, but send the message that the road to prosperity and development passes through the EU.
“The Government is committed to full implementation of the program and will take all necessary steps to this direction” he said, noting however that strengthening Cyprus relationships with the Commission is essential to achieve this goal.
Anastasiades said that the allocation of additional 200 mn to Cyprus for the years 2014 and 2015 from the Cohesion Policy Fund and the increasing of co-funding from 60% to 95%, open up progress for accelerating implementation of development projects that will boost the economy and create jobs , particularly for young people. Anastasiades thanked Barroso for his initiative to establish the Cyprus Support Group.
The President said that since last March and the Eurogroup’s “tough decision” for a haircut on deposits, “we have achieved a lot” however he added that “we still have a long way to go”.
Anastasiades welcomed the Troikas’ two positive reviews on the implementation of the Cyprus’ adjustment program and reiterated Cyprus determination to continue these “enormous efforts”.
He noted that despite the current unfavorable economic conditions, the recent discovery of natural gas resources in the country’s EEZ creates positive prospects.
The President said that he briefed the EU Commission President on the latest developments in the Cyprus issue and analysed the reasons why he insists on a joint statement that will define the fundamental principles of the solution, prior to commencing the dialogue with the Turkish Cypriot side.
Anastasiades said that after his election last February he undertook a series of initiatives to give an impetus to efforts to resolve the Cyprus problem, such as the appointment of a Greek Cypriot negotiator and the proposing of confidence building measures, that include the return of the fenced-off section of Famagusta, which “if accepted, will benefit all sides and the two communities in Cyprus, and will give a new impetus to the procedure and to Turkey’s accession process” he noted.
The President said he wishes for greater EU involvement in the procedure. “A united Cyprus must function within the EU and the Cypriot citizens should enjoy all their rights as citizens of the Union” said Anastasiades.
“Despite the difficulties, I assured the President of the Commission that we will continue our efforts in a spirit of tolerance, in order to create conditions for the reunification of our island” he said.
President Anastasiades expressed hope that the Commission’s relationships with Cyprus will be deepened, adding that the European values and principles and the welfare of all European citizens should be the point of reference.
Excluded from the international markets, Cyprus applied for financial assistance to cover its fiscal needs and to rescue its two largest bank hit severely by deteriorating assets amid the financial crisis and by the Greek sovereign debt haircut. The Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout, featuring haircut of uninsured deposits. So far Cyprus has received €4.7 billion.
The country has been divided since 1974 when Turkey invaded and occupied its northern third. UN led efforts to reunify the island under a federal roof have failed so far. The negotiators of the two communities have been meeting in UN presence in the past few weeks in order to agree on a joint declaration for the resumption of the talks.
On Monday President Anastasiades and Turkish Cypriot leader Dervis Eroglu had an informal meeting, at the former’s initiative, which however failed to achieve a breakthrough in efforts to reach an agreement on a joint declaration.
