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FES CYPRUS NEWSLETTER Nr. 44 / FEBRUARY 2016 Contents 1. Cyprus Problem ......................................................................................... 2 2. Hydrocarbons ............................................................................................ 7 3. Greek Cypriots .......................................................................................... 8 Economic Developments ........................................................................... 8 Domestic Developments ........................................................................... 9 Labour Relations and Trade Unions .......................................................... 9 4. Turkish Cypriots ...................................................................................... 11 Economic Developments ......................................................................... 11 Domestic Developments ......................................................................... 12 Foreign Policy .......................................................................................... 14 5. FES Cyprus Events ................................................................................... 14 FES NEWS - please visit us on - www.FEScyprus.org - www.facebook.com/FEScyprus 1 FES CYPRUS NEWSLETTER Nr. 44 / February 2016 1. Cyprus Problem back channel diplomacy in both communities. Greek Cypriot parties, in particular DIKO, EDEK In January, the negotiations for a settlement of and the Greens, reacted harshly, raising their the Cyprus problem continued with the Cypriot concerns over a potential upgrade of the TRNC1 th th th leaders meeting on the 7 , 14 and 29 of the and the status of the Turkish Cypriot leader. month as part of the intensified phase of the Cyprus peace talks. On January 29, the leaders agreed on the pro- cedures to be followed during the negotiations During the first meeting of 2016, on January 7, over the coming months. Although issues of President Nicos Anastasiades and Turkish substance were not discussed, Anastasiades Cypriot leader Mustafa Akinci reviewed the and Akinci agreed on the range of topics that course of the talks in a bid to focus on out- need to be tackled. According to a Cyprus News standing issues and explore avenues for further Agency report, three points were agreed convergences. regarding the way forward: Firstly, a list of During the second meeting on January 14, the issues discussed so far without agreement will two leaders reviewed the progress made so far be drafted, so that discussion can continue. and exchanged views on the basic principles Secondly, a discussion of issues not yet tabled that need govern the substantive aspects of a were also agreed upon. Finally, the two leaders solution. These include territorial re-adjust- decided to start laying the groundwork for the ments, outstanding issues on property and gov- implementation of an agreed solution from day ernance, and the power to sign international one, if and when a solution is reached. The next treaties where the principle of one international leaders’ meetings are scheduled for February 8 identity must be respected. During the meeting, and 26. the two sides also exchanged the respective lists of the members comprising of the technical committee on education. This was established 1 The Turkish Republic of Northern Cyprus (TRNC) is in November to review existing research and only recognised by the Republic of Turkey. While for good practices in education in Cyprus. Following Turkey and the Turkish Cypriots, Mustafa Akinci their meeting, both leaders shared over social serves as President of the TRNC, the international community considers him the communal leader of media that they had received and accepted an the Turkish Cypriots. As the government of the Re- invitation for a joint meeting with the United public of Cyprus remains internationally recognised Nations Secretary General Ban Ki-Moon in as the government of the whole of the island, the Davos, Switzerland, during the World Economic entire island is now considered to be a member of the European Union. However, the acquis commu- Forum from January 20 and 23. The invitation nautaire is suspended in northern Cyprus pending a triggered much press speculation over possible political settlement to the Cyprus problem (see Pro- tocol no. 10 of the Accession Treaty). 2 FES CYPRUS NEWSLETTER Nr. 44 / February 2016 At the World Economic Forum in Davos, Swit- tunity for the Greek Cypriot side to directly con- zerland, Anastasiades and Akinci made an vey its positions to the Turkish leadership and unprecedented joint appearance on January 20 to learn first-hand about the Turkish stance on before the world’s political leaders and business key aspects of the Cyprus problem. The meeting elite in an attempt to reach financial support for was equally important for the Turkish side, con- a settlement of the Cyprus problem. The two sidering that AKEL is opposed to any NATO leaders shared the platform at a special session guarantees. This is a scenario that would possi- entitled ‘‘Reuniting Cyprus’’. Both Anastasiades bly satisfy Turkey in a new security arrangement and Akinci stressed on different occasions that within the guarantee aspect. Speaking after the they are counting on the support of the interna- meeting, Kyprianou commented that Turkey tional community for technical and financial would like to have a say on the issue of guaran- assistance to help bring about a solution. The tees, but in a different way than under the cur- costs of a solution are currently estimated to be rent system. Kyprianou also stated that Turkey around USD $25 billion. On the sidelines of the will allow Akinci a free rein on internal issues World Economic Forum, Anastasiades and since Ankara is more concerned with the issue Akinci met separately with US Vice President of security and guarantees. Lastly, Kyprianou Joe Biden and jointly with UN Secretary General noted that the Turkish leadership seemed to Ban Ki-Moon. Anastasiades attended a dinner understand that without a solution of the hosted by the founder of the Forum, Klaus Cyprus problem, Ankara would not be able to Schwab. He also met with the President of the play an important role in the Southeastern European Bank for Reconstruction and Mediterranean. In his comments, Mevlut Development Suma Chakrabarti and Greek Cavusoglu described his meeting with Prime Minister Alexis Tsipras. Akinci met with Kyprianou as ‘‘very positive’’ and highlighted President of the World Bank Jim Yong Kim and the fact that AKEL supports President Nicos British Prime Minister David Cameron. Anastasiades in the negotiations. Kyprianou described his meeting with Ahmet Davutoglu as The leader of AKEL, Andros Kyprianou, was “remarkably friendly”. received in Istanbul on January 23, by Turkish Foreign Minister Mevlut Cavusoglu and Turkish Meanwhile, in a move considered as a good will Prime Minister Ahmet Davutoglu to exchange gesture that could positively contribute to the views on the Cyprus problem. An invitation by efforts to reunify the island, Anastasiades initi- the Turkish FM was extended to Kyprianou on ated a move to check the possibility of whether January 2, through the Turkish Cypriot negotia- Turkish could be included as an official language tor Ozdil Nami. The meeting, which was heavily at the EU, as it is one of the two official lan- criticized by the rejectionist parties EDEK and guages of the Republic. Akinci’s spokesperson, DIKO, was considered an exceptional oppor- Baris Burcu said that Anastasides’ initiative was 3 FES CYPRUS NEWSLETTER Nr. 44 / February 2016 long overdue but described it as yet a positive reach a comprehensive settlement as soon as move. possible”. The Turkish Cypriot Minister of Interior and On January 15, the UN Secretary General’s Spe- Labour, Asim Akansoy announced that the ten- cial Adviser on Cyprus Espen Barth Eide briefed der launched by the UNDP for the opening of the Security Council members on the latest the Lefka/Aplici and Deryneia/Derinya crossing developments in the Cyprus negotiations in a points has been completed. Akansoy said that closed session in New York. Despite difficulties, the European Commission has released €2.1 Eide said, a solution is “more than possible”. “In million, which had been earmarked earlier for some fronts, the progress has been quite the road works. remarkable. But the last part is always the most difficult. The weeks and months ahead will be In the last few days of 2015 and first days of about dealing with these essential core ques- 2016, around 20-30 MW electricity was trans- tions that remain unresolved … I also do not ferred from the southern part to the northern want to create the impression that it’s just part because of a defect in the Turkish Cypriot around the corner, because some of the essen- electricity authority's power plant. Baris Burcu, tial issues for both communities are still to be Akinci’s spokesperson, said that the work finally tackled. But as I have said to the Council, launched within the framework of the Cyprus there is willingness in all relevant quarters to negotiations have not yet come to the point of make this possible.” Furthermore, Eide added permanently uniting the electricity networks in that the UN Security Council “will have a role to Cyprus, but electricity could be transferred on a play” if a final solution is agreed. “It will be a temporary basis. Commenting on the issue, the different role, and the council at that time will Turkish Cypriot Minister of Agriculture,

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