European Union member state

On 1 May 2004, Cyprus became a European Union member state.
Accession to the EU was a natural choice for Cyprus,
dictated by its culture, civilisation, history,
European outlook and adherence to the ideals of democracy,
freedom and justice.

Cyprus has successfully faced the challenge of integration,
and its accession to the European Union has not resulted in any insurmountable difficulties.
On the contrary, harmonisation with the EU’s acquis communautaire
was carefully planned and supported by appropriate policies.

Cyprus is being transformed into a key outpost in the eastern
Mediterranean, serving as a bridge between the EU and the Middle East

In particular, Cyprus has undertaken significant economic
and structural reforms that have transformed its economic landscape.
Tariffs and quantitative restrictions have been eliminated
for all manufactured goods and agricultural products
originating in Cyprus and other EU countries.
Trade and interest rates have been liberalised,
while price controls and investment restrictions have been lifted.
In addition, private financing has been introduced for the construction
and operation of infrastructure projects; while the electricity supply
and the telecommunications sectors have been liberalised.

for further info: www.mfa.gov.cy

Moreover, the Common Customs Tariff (CCT) as well as the relevant EU legislative
framework for the facilitation of the free movement of goods, capital,
and services, have been adopted.

for further info: www.mof.gov.cy/ce

In May 2005, the first anniversary of its accession to the European Union,
Cyprus achieved an important economic goal when the Cyprus pound
joined the European Exchange Rate Mechanism II (ERM II),
a prerequisite for joining the eurozone.
Following the firm commitment to pursue sound fiscal policies,
essential for preserving macroeconomic stability and ensuring
the sustainability of the convergence process, the Cypriot authorities
announced concrete measures to strengthen Cyprus' economic performance
and reach the eurozone targets. Cyprus expects to join the euro area by 2008.

for further info: www.euro.cy

"Cyprus certainly seems to be pointing in the right direction already.
Since the joining of the European Union in May, 2004, the republic appears
to have been sufficiently inspired to promote a very healthy export boom.
" - World Finance - December-January 2006

Accession to the EU has launched a new era of challenges
and responsibilities for Cyprus, and has generated several new business
opportunities in various sectors:

As far as the energy sector is concerned, the establishment of an Energy Centre
is under way. The Centre will comprise a Liquefied Natural Gas (LNG)
receiving / storing / re-gasification terminal
and a terminal for the storage and handling of oil products,
including LPG and bitumen. Numerous projects are included
in the 2007-2013 Strategic Development Plan.

In the tourism sector, plans include the construction of new marinas,
theme parks and sports facilities, as well as the reconstruction of the island's
two international airports, and of the Larnaca port.

New investment opportunities also arise through Cyprus' high technology investment
programme related to the establishment of business incubators as well as the launching
of a Cyprus Technology Park with the cooperation
of French Riviera Chamber of Commerce and Industry and the Sophia Antipolis Science
and Technology Park. Such initiatives aspire to facilitate the creation of new ventures,
especially in developing and commercialising innovative products and methods,
and to effectively utilise Cyprus’ outstandingly skilled workforce.
In this connection, the School of Engineering has been established within the University of Cyprus,
while an agreement has been signed with the Harvard School of Public Health (HSPH)
regarding the establishment of the Joint International Institute on the Environment
and Public Health.
for further info: www.hsph.harvard.edu/cyprus

The already recognised role of Cyprus as a regional banking and shipping centre has become
even more enhanced. As proof of the island’s position as a main transhipment centre
is the substantial volume of products re-exported
which in 2005 reached C£462,6 mln (approx. €802 mln4).

Increased financial assistance from the EU to Cyprus is available
through structural funds, as well as through wider participation
in European Programmes, such as the 6th Framework Programme.

Finally, export opportunities have been broadened for Cypriot products
and services having obtained direct access to the vast EU market,
with a total population of over 450 mln. Notably,
more than half of Cyprus’ trade is with the EU. Cyprus also has diplomatic ties
with countries that have established an embassy in the island in order
to cover their interests in the Middle East and Europe.
The accession to the EU confirmed Cyprus' position as an important player
in the European and Middle East region, and reaffirmed its potential
as a rapidly developing market

The geographical proximity of Cyprus to the increasingly important market
of the Middle East represents an important factor in creating partnerships
between Europe and the Middle East; two different regions bound by mutual interests.
The Middle East region with its oil-rich resources, coupled with the potentials
that a wealthy market holds, provides excellent opportunities for European business.
Similarly, Middle East manufacturers and traders can gain easier access
to the prosperous EU market via Cyprus.

The Cypriot entrepreneurs’ wide knowledge of the markets of Eastern Europe
and the Middle East, combined with the existence of a large number
of International Business Companies in Cyprus, constitutes a substantial
advantage for those who decide to use Cyprus as a base
for penetrating regional markets. Cypriot entrepreneurs
and other professional experts are prepared to enter into fruitful
cooperation with interested foreign companies in order
to develop all aspects of business activity.

for further info on Cyprus - EU relations:
www.delcyp.cec.eu.int
www.eu-coordinator.gov.cy
www.eic.ac.cy

Print Page