No compromise deal was found on the issue of direct trade for Turkish Cypriots during the visit to Cyprus on Thursday by Enlargement Commissioner Olli Rehn and EU Presidency foreign affairs representative Nicolas Schmit.
The direct trade regulation, which would allow preferential trade for Turkish Cypriot goods with EU countries has been blocked for over a year owing to Greek Cypriot objections to the legal basis.
One of the reasons for the visit of Rehn and Schmit was to reach a compromise deal on the direct trade and aid issue.
Earlier this week the Republic of Cyprus government repeated its offer to allow the internationally legalised operation of Famagusta port in return for the ghost town of Varosha.
However, since this would require the go-ahead from the Turkish military, which is highly unlikely to give back Varosha without a full settlement, the Greek Cypriot offer is seen as a stalling tactic.
Since the Commission and the majority of member states as well as the Turkish Cypriots insist that this regulation is tied with the EUR 259 mln in financial assistance, the deadlock on the direct trade regulation also means that no aid has been released.
Rehn said that the Commission considers its original proposal as the first best option, adding that “facing the reality that it has not been adopted by the Council, we support the Luxembourg Presidency to seek a compromise.”
Enlargement Commissioner said that they discussed the Cyprus government proposal on the return of the fenced area of Famagusta and other matters relating to direct trade and aid.
“We discussed various elements to enhance a decision on the trade and aid measures in order to facilitate economic development and direct trade. It is well known that the Famagusta proposal is one element we consider. I prefer not to go to any detail now, I prefer that the political leaders of the Republic and the northern part of the island respond to themselves to this question,” Rehn said.
Schmit indicated the Presidency’s commitment not to let the issue lie, however.
“This is what we are aiming at, because we think that it is time to open again the way to a political settlement here. We cannot just leave these commitments, which were taken by the Council to support financially the Turkish Cypriot community in terms of financial aid but also in terms of breaking the economic isolation at this part of the country,” Schmit noted.
Property makes a solution urgent
Referring to the sale of Greek Cypriot titled property in northern Cyprus, Rehn said “the current situation is increasing tension in the island and I would find it very difficult to support the use of civil and criminal law on an issue, which is predominately, a political matter. We have to even more urgently and seriously work for a comprehensive settlement.”
