The leaders of the island’s two divided communities reiterated on Wednesday night their belief that the economic benefits of a solution to the protracted Cyprus problem would be tremendous, possibly double the size it is today within two decades, with tourism, energy and shipping the main drivers.
Cyprus President Nicos Anastasiades and Turkish Cypriot community leader Mustafa Akinci addressed a public event hosted by the island’s two chambers of commerce, where they outlined their “Vision for a post-settlement economy of Cyprus” in the presence of senior UN officials involved in the current peace talks, diplomats, politicians and leading business people.
The two have already shown a commitment to peace by attending various events on each side and even going together on a “walkabout” near border areas, meeting with people from both sides.
In his speech, Anastasiades talked about “the multiple benefits” to the economy arising from a solution and a reunified Cyprus.
“A number of studies conducted both by the Cyprus Chamber of Commerce and Industry (KEVE) and others, it has been estimated that with a settlement there is a potential that the all-island GDP could double in 20-years time, through … additional income creation in the tourism, construction and transport mainly shipping, industries, as well as the financial and insurance activities,” he said.
“And it is obvious that the growth of these sectors will create spill-over effects for wholesale and retail trade and the overall lift to economic activity will significantly reduce unemployment rate.”
With per capita annual GDP estimated in the Republic at €20,600, Anastasiades thus believes that in 20 years’ time Cyprus could be at par with the Netherlands, Austria, Canada and Ireland, and not too far behind the US with the tenth best per capita in the world.
Encouraged by the progress seen in the current phase of the UN-led peace talks, with Anastasiades and Akinci, as well as their advisors recording significant progress to identify converges and divergences and work in that direction, the Greek Cypriot leaders said that “it is clear that the unacceptable status quo does not negatively affect only one of the two communities, but both communities and the Cypriot people. Therefore, my vision, which coincides with the vision shared by my friend, Mustafa Akinci, is to reach a settlement that will end the anachronism related with the current situation and provide hope and the prospect of a better future for all Cypriots, and in particular the younger generations.”
Anastasiades said that benefits will come from improvement in the investment climate and to attract major multinational, access to international finance, reaching out to unexploited markets, reducing unemployment, promoting “an integrated tourism product,” reconstruction in the abandoned city of Varosha, and shipping, where apart from boasting the third largest fleet in the EU and tenth in the world, benefits will also come from the opening of Turkish ports to Cyprus-flag ships, currently banned due to an embargo imposed by Ankara.
He added that “the economic benefits once a solution is to be reached offset and neutralise any temporary or short-term economic costs to be incurred.”
Appealing to Ankara to contribute in reaching a solution, Anastasiades said that a solution will “contribute towards improving the relations between Greece and Turkey, provide an impetus to Turkey’s EU accession negotiations and positively help the efforts of Turkey in satisfying its growing energy needs.”
He said that the activities of the Nicosia Economic Forum, comprised of the Cyprus Chamber of Commerce and Industry, the Turkish Cypriot Chamber of Commerce, the Union of Hellenic Chambers of Comerce and Industry and the Union of Chambers and Commodity Exchanges of Turkey “constitute a living proof that the people of the three countries can not only coexist, but also cooperate harmoniously together to the benefit not only of the business community, but of the civil society at large.”
Akinci said that during his visit to Brussels last week, he told EU leaders that a lot of financial support would be needed for Cyprus.
“It is with great satisfaction that I witnessed the awareness of EU’s high-ranking officials that the cost of the continuation of division is higher than the cost of the solution,” he said.
Akinci said a federal Cyprus, being an EU member would bring with it many opportunities as well as responsibilities.
“There are lessons to be learned from the existing examples, but I think the biggest lesson we must take with us is that membership itself does not guarantee welfare and a better life unless we act responsibly and do what we must do as a country.”
He said Cyprus was small and resources scarce. “Lack of cooperation is leading to the waste and overexploitation of our resources,” he added.
Akinci also called for the economic disparity between the sides to be narrowed prior to a solution so that Turkish Cypriots would be able to shoulder their own economic activity in a federal Cyprus.
Both leaders spoke of their commitment to the talks and Akinci stressed the importance of making people aware of a solution that lies ahead.
“No political or economic design can be sustainable if we exclude the people from it. Our people must have a clear understanding of what the solution will bring and what the day after will look like,” he said.
Even more confident of progress in the talks has been the UN’s Special Adviser Espen Barth Eide, who was also present the chambers’ event, who had said a day earlier that he felt more and more optimistic about a Cyprus solution as he saw progress on a wide range of issues.
Eide, who had been attending lengthy meetings with the two negotiators – Andreas Mavroyiannis and Ozdil Nami – ahead of the leaders’ next meeting on Friday, said the talks had crossed into a more substantive and constructive phase and that was why he had decided to attend the meetings of the negotiators this week discussing core issues of property, territory and governance.
