Est. 2min 28-02-2006 (updated: 04-06-2012 ) Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram The EU’s foreign ministers have approved a controversial aid package for northern Cyprus. The move was welcomed by the Greek Cypriots. However, Turkey said that the deal could create new problems. For the EU, the adoption of the aid package is seen as conducive to the adoption of the 2004 proposal on direct trade between the EU and the Turkish Cypriot community. However, for now Ankara remains disappointed as it continues to insist that the EU should first fulfill its own commitments on Cyprus before Turkey opens its ports and airports to Greek Cyprus. This, in turn, is seen by the Greek Cypriots as a condition to their giving green light to the direct trade scheme. Cyprus, just like all other member states, has veto rights over every stage of the process. Cyprus has blocked the aid and trade measures since 2004. Furthermore, Ankara considers the current aid package weak since it aims at improving infrastructure rather than boosting economic development. The aid proposal approved on 27 February does not mention the trade provisions between the EU and Turkish Cyprus. Meanwhile, the US State Department has indicated that in its view it is not illegal to conduct trade with Turkish Cyprus. “Commercial transactions with the northern part of Cyprus are not illegal by any definition that I’m aware of,” said State Department spokesman Adam Ereli. He added, however, that this stance did not amount to the recognition by Washington of Turkish Cyprus. “The nucleus is that our policy and recognition has not changed,” Ereli said. Read more with Euractiv Rehn presses Belgrade to arrest fugitive Mladic Commissioner Rehn says that the EU could freeze talks with Serbia if Belgrade fails to arrest war crimes fugitive Ratko Mladic. The hunt is reportedly on in Serbia. Positions Enlargement Commissioner Olli Rehn welcomed the 27 February decision by the General Affairs Council, stressing that "many concrete projects can now be realised which bring the Turkish Cypriot community closer to the European Union." The decision "should be seen as a first step by the EU towards putting an end to the isolation of the Turkish Cypriot community and facilitating the reunification of Cyprus," Rehn said. The Austrian Presidency has also expressed satisfaction with the agreement. "We have tackled a very difficult issue and we are very, very happy that we have solved it,” said a spokesman. Turkish Prime Minister Recep Tayyip Erdogan remains adamant that "first you [the EU] should fulfill your pledges before asking Turkey to honour its commitments." Turkey's Foreign Minister Abdullah Gul said that “the genuine step Turkey expects is direct trade together with financial aid. This unilateral decision by the EU will bring new problems and difficulties.” According to the Presidency of Turkish Cyprus, "the decision [...] is far from meeting our expectations. The EU institutions making decisions, as a result of Greek Cypriot pressure, that can hinder a comprehensive solution on the island make the Turkish Cypriots uneasy." The President of Cyprus, Tassos Papadopoulos, voiced his satisfaction with the EU's decision. "This is the first time, after so many years, that the issue of the return of Famagusta has become an issue for discussion by the European Union," he said. In the words of Cypriot government spokesman Georgios Lillikas, the "fairy tale of Turkish-Cypriot isolation" is now eliminated with the EU's decision. BackgroundIn 2004, the Commission proposed an aid package originally worth 259 million euros to the Turkish community of Cyprus. The package was to be coupled with an agreement that would have allowed direct trade between the self-proclaimed Turkish Republic of Northern Cyprus and the EU's 25 member states. The proposal came on the heels of the April 2004 referendum in both Cypriot communities whose aim was to decide on the island's reunification along the lines of the UN's so-called Annan Plan. The Turkish Cypriots voted for reunification but the Greek Cypriots voted against. On 1 May 2004, the Republic of Cyprus joined the EU as a full member. Following the referenda, the Commission stated in July 2004 that it was determined to "put an end to the isolation of the Turkish Cypriot community and to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community." For this end, the Commission proposed an aid envelope of 259 million euros for 2004-2006, and it also proposed a regulation to facilitate direct trade from the the northern part of Cyprus. "The proposal offers a preferential regime for products originating in the North, entering the Customs Territory of the EU," said the Commission's communication. Following several months of debates, the EU's foreign ministers approved on 27 February 2006 a financial aid package to northern Cyprus. A total of 139 million euros in financial aid will be released to the Turkish Cypriot community in 2006. Of the originally planned 259 million euro purse, some 120 million were lost as the deadline for using the funds from the EU's 2005 budget was missed. Further ReadingEuropean Union Council:EU financial support for the Turkish Cypriot community Commission:Statement by Commissioner for Enlargement Olli Rehn, on the adoption of the Aid Regulation for the Turkish Cypriot community by the Council Commission:Commission proposes comprehensive measures to end isolation of Turkish Cypriot community(7 Jul 2004) Governments US Department of State:Daily press briefing(Deputy Spokesman Adam Ereli, 24 February) Press articles Financial Times:Turkey upset by EU deal on N Cyprus Zaman:Turkish PM Rejects EU Demands on Cyprus Kathimerini:EU aid move pleases Cyprus Info-Grece:L'UE pour l'aide directe au Chypro-turcs, mais pas pour le commerce Finanzen.de:EU stellt 139 Millionen Euro für Nordzypern bereit Manager-magazin.de:EU gibt Finanzhilfen für türkischen Nordteil Zyperns frei
