FES CYPRUS NEWSLETTER NR. 72 / MAY 2018

Contents

1. Cyprus Problem ...... 2

2. Hydrocarbons ...... 8

3. Greek Cypriots ...... 8

Economic Developments ...... 8 Domestic Developments ...... 9 Labour Relations and Trade Unions ...... 9

4. Turkish Cypriots ...... 11

Economic Developments ...... 11 Relations with Turkey ...... 12 Domestic Developments ...... 13

5. FES Cyprus Events ...... 14

FES NEWS

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FES CYPRUS NEWSLETTER Nr. 72/ May 2018

1. Cyprus Problem Furthermore, Akinci said “even though Anasta- siades repeatedly stated on numerous occa- In May, Greek Cypriot leader Nicos Anastasi- sions after Crans Montana that he supported ades sought clarifications over a proposal made the Guterres Framework it has emerged that on April 30 by Turkish Cypriot leader, Mustafa this is not the case … This … shows that the Akinci, calling for the Greek Cypriots to accept Greek Cypriot leadership, contrary to its state- the so called Guterres framework for a solution ments, prefers the continuation of the status of the Cyprus problem as a strategic package quo on the island. As it is known, I had stated without alterations. that on the 30th of April 2018 that if the Greek Cypriot side was ready to accept the Guterres On May 2, Anastasiades responded to Akinci framework as it is, without any alterations, we stressing that Turkey and the Turkish Cypriots could announce it as a strategic package needed to clarify whether they accepted the agreement. I had stated that only then would parameters laid down on security and guaran- holding negotiations to fill in the blanks have tees and the withdrawal of troops from the meaning. Anastasiades spent the last month island. Anastasiades implied that different ver- without responding only to finally blatantly sions of the proposals were put down by the UN reject this proposal in an interview to Philelef- Secretary General Antonio Guterres in Crans theros the other day” he said. Highlighting the Montana, by asking whether Akinci accepted need for the international community, particu- the framework of ‘’July 4 2017” which included larly the UN and the EU as well as organisations changes to the framework suggested by the on both sides of the island to evaluate this situ- Greek Cypriot leader but were neither accepted ation objectively, Akinci said that “the Greek by the Turkish side or adopted by the UN- Cypriot leader with his latest remarks had Secretary General himself. Akinci’s proposal revealed that he rejected the notions of political remained unanswered by the Greek Cypriot equality and effective participation in decision government, despite Akinci clarifying that he making.” was referring to the Guterres framework pre- sented on June 30, 2017. Elsewhere, pointing out that neither at the time of the Conference on Cyprus in Crans Montana In his written statement at the end of May, nor today the Turkish Cypriot side is inclined to Akinci reiterated that UN Secretary General, accept “zero guarantee, zero troops”, Akinci had confirmed in their meeting in New York on said that the Turkish Cypriot side would not rd the 23 of September 2017 that there was only accept any future security arrangement that one framework document that had been pre- would exclude Turkey. sented to the two sides by the UN Chief on the 30th of June 2017.

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The 6 points of the Guterres Framework from tion in 2004 are less inclined to vote in favour June 30 as well as the core outstanding issues now. between the sides are presented herein in Political Equality (as stipulated in the Guterres detail as assessed by an insider who made the Framework) analysis available to this newsletter: A rotating Presidency with 2:1 ratio in favour of The Guterres Framework as of 30 June the Greek Cypriot president 2017 and the Core Outstanding Issues of the Cyprus Problem Territory (as stipulated in the Decision-making ensuring effective participation Guterres Framework) of both communities: simple majority with one There is a need to adjust the map presented by positive vote from each community with dead- the Turkish Cypriots to respond to concerns lock resolving mechanism in particular in cases expressed by Greek Cypriots regarding some where issues are of vital interest for the com- locations. munities. Outstanding Issues Outstanding Issues On the issue of territory, the Greek Cypriots The Greek Cypriot side is opposed to the rotat- would like Morphou returned under the Greek ing Presidency as it is perceived as an anathema Cypriot Constituent State as stipulated by the to the Greek Cypriot public. However, they UN sponsored so called Annan Plan to unify the might be willing to compromise if it is on the island from 2004 which had been accepted by basis of a joint ticket for both presidential can- the Turkish Cypriot community in a referendum didates and/or weighted cross-voting, so that but was rejected by the Greek Cypriot commu- there is a Greek Cypriot element in the Turkish nity in their popular vote. If their demands are Cypriot presidency and vice versa. not satisfied as per the Annan plan in percent- The Turkish Cypriots on the other hand demand age of territory, Greek Cypriots might be satis- for effective participation which translates into fied with more coastline meaning the Karpas visibility in the government organs. They feel area. rotating presidency gives them more visibility The Turkish Cypriots on the other hand are not than a joint-ticket presidency, where a Greek willing to give Morphou back as they are con- Cypriot and a Turkish Cypriot run together. The cerned about social, political and economic right wing in particular is opposed to weighted costs of dislocation. Another parameter taken cross-voting because they think it will keep into consideration is that a certain amount of them out of power forever. investment has taken place in the area while As regards decision making the Greek Cypriots the people that voted in favour of a reunifica- are concerned about a potential deadlock as

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was the case in the 1960’s. They are therefore ish Cypriots want to maximise compensation so opposed to a veto mechanism and opt for sim- they keep as much of the property as possible. ple majority. The Turkish Cypriots however They are not willing however to pay the com- argue that that simple majority will out-vote pensation amounts expected by Greek Cypriots. them on important issues. Hence their demand Equivalent Treatment (as stipulated in the for “special majority” on important issues (like Guterres Framework) the budget, which is how things fell apart in Free movement of goods (customs union + a 1963). quota to be agreed for primary agricultural Property (as stipulated in the Guterres Frame- products), services and capital. work) Free movement of persons: the regime will Two property regimes: for areas under territori- permit tourists, students and seasonal workers. al adjustment a regime to be constructed in a For those seeking permanent residence, equi- way that would lend itself to give priority to table treatment will be granted to Greek and dispossessed owners. For areas not under terri- Turkish nationals in Cyprus. torial adjustment a regime to be constructed in a way that would lend itself to give priority to Outstanding Issues current users. Specific elements to be further Regarding Equivalent Treatment as per the elaborated. Annan Plan as well as in earlier plans, Turkey and Greece were to be granted ‘‘Most Favoured Outstanding Issues Nation Status’’, implying Turkish nationals were The major issue here is who gets priority: the going to be granted the same rights as Greek dispossessed owner, mainly the Greek Cypriot, nationals. The European Union factor changed or the current user, mainly the Turkish Cypriot? this to some extent, although not as much as The Greek Cypriots obviously favour the dispos- Greek Cypriots often claim. Treatment of third- sessed owner. However, recent polls indicate country nationals is a national competence, not that few Greek Cypriots would return and live in an EU one and Turkey already has a customs their property, so this issue plus the ECHR case- union with the EU. law makes it potentially less divisive than in the Greek Cypriots have a political concern with past. Another issue is how much compensation regards to what might look like limiting the to pay and who pays for it all. Greek Cypriots rights of EU members (Greek nationals). How- would like Turkey to pay. ever, their main concern is to prevent creeping Turkish Cypriots obviously favour the current “Turkification” via Turkish nationals gaining user, especially if the current user is a displaced residency rights and then the right to apply for Turkish Cypriot. Regarding compensation, Turk- citizenship. EU members also have some con-

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cerns about this for their own countries, which Cyprus. This number is not as big as many Greek is why they are happy to accept a permanent Cypriots claim (and should be around 50,000). It derogation via the 4:1 ratio. Although not men- approximates to a 4:1 ratio in a United Cyprus. tioned in the Guterres Framework is the fact Thereafter there seems to be an agreement that there is already an agreement between that they will keep the ratio 4:1 in any new citi- both sides that the population ratio should zenships granted to Turkish and Greek nation- remain the same as it was in the 1960s, mean- als. ing approximately 4:1 (4 Greek-speaking to 1 Security and Guarantees (as stipulated in the Turkish-speaking citizens). This also probably Guterres Framework) means permanent derogations from the EU The Secretary General outlined that he did not acquis. think that a system in which the right of inter- The main concern of the Turkish Cypriots is that vention would remain would be sustainable. He they are greatly dependant on Turkish tourists said that, the areas that are under the Treaty of for much of their tourism sector, on Turkish Guarantees could be replaced by adequate students to fill their very large higher education implementation monitoring mechanisms, cover- sector, on Turkish capital for much of the pri- ing various aspects, to be mutually agreed. In vate sector and on Turkish labour for much of some of these, Guarantor Powers could be the construction and blue-collar work. So treat- involved. A security system should ensure that ing Turkey the same way that, the Greek Cypri- both communities feel safe in a United Cyprus, ots for example treat people from Lebanon, while the security of one should not come at would be disastrous for their economy. Turkish the detriment of the other. Cypriots (and Turkey) want as much freedom of The issue of the presence of Greek and Turkish movement and establishment as possible. Turk- troops after an agreement is a different ques- ish Cypriots are also concerned about the ratio tion and should be handled in a different for- of people of Turkish origin to Turkish-speakers mat. The issues related to troops (numbers, of Cypriot origin. Despite these concerns, Turk- withdrawals if and when they will need to leave, ish Cypriots want all those they have granted timelines, etc.) was to be agreed at the highest TRNC1 citizenship to be citizens of a united level when time is ripe.

1 The Turkish Republic of Northern Cyprus (TRNC) is as the government of the whole of the island, the only recognised by the Republic of Turkey. While for entire island is now considered to be a member of Turkey and the Turkish Cypriots, Mustafa Akinci the European Union. However, the acquis commu- serves as President of the TRNC, the international nautaire is suspended in northern Cyprus pending a community considers him the communal leader of political settlement to the Cyprus problem (see Pro- the Turkish Cypriots. As the government of the Re- tocol no. 10 of the Accession Treaty). public of Cyprus remains internationally recognised

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Outstanding Issues Special Envoy until the early parliamentary and The issue of Securities and Guarantees is the presidential elections are held in Turkey on June one that divides the sides the most as outlined 24. Reportedly, both sides in Cyprus as well as as follows: Greece and the UK have given their consent for Lute’s appointment. Greek Cypriots argue for the end of the unilat- eral right of intervention contained in the Trea- The Immovable Property Commission (IPC), ty of Guarantee (at least in the Turkish interpre- which was set up in 2005 to establish an effec- tation) which was given in the Guterres Frame- tive domestic remedy for claims relating to work. In addition, they demand for the removal Greek Cypriot properties in the northern part of of all troops. This is a tougher line than what Cyprus, decided to return a property of 349 was stipulated in the Annan Plan, when the square meters in Kozan (Larnakas tis Lapithou) Greek Cypriot leadership was prepared to com- village to its Greek Cypriot owner Nikolas Skou- promise by agreeing with the 650 Turkish and rides. According to the report of Turkish Cypriot 950 Greek troops contained in the Treaty of daily Yeniduzen, this was only the second time Alliance to remain for at least a limited period the IPC decided to return the property to a of time but potentially indefinitely given the Greek Cypriot refugee in the last five years. need for a Turkish approval for any final with- Skourides’ application to the commission had drawal. been submitted on 7 October 2011 and the decision was taken on 13 March 2017 and the Turkish Cypriots on the other hand do not trust procedure was completed on 19 September Greek Cypriot reassurances that guarantees or 2017, when the official return took place. troops are not required anymore because they According to the chairperson of IPC, Ayfer are an EU country now. The EU has disappoint- Erkmen, 97,7% of the decisions taken so far by ed Turkish Cypriots in matters such as the nev- the IPC envisaged payment of compensation, er-implemented direct trade regulation. They 1% return of property and the rest of the appli- also note the EU’s inability to react to the cations were withdrawn. According to the web- Ukrainian Crises. Thus, they want guarantees as site of IPC, as of early June, 6,440 applications a safety net. Turkey is prepared to greatly have been lodged with the Commission and 907 decrease troop amounts as long as a military of them have been concluded through friendly base remains in Cyprus, mainly for its own secu- settlements and 32 through formal hearing. The rity reasons. Commission has paid GBP 277.6 million to the According to information quoted by the Cyprus applicants as compensation. Moreover, it has News Agency, Ankara is blocking the arrival of ruled for exchange and compensation in two Jane Holl Lute as the UN Secretary General’s cases, for restitution in three cases and for res- titution and compensation in six cases. In one

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case, it has delivered a decision for restitution will continue their struggle and solidarity, the after the settlement of Cyprus Issue, and in one joint statement underlined the need for a case it has ruled for partial restitution. settlement to the Cyprus problem as soon as possible and called on both leaders to take According to Turkish Cypriot weekly Cyprus steps towards the resumption of the Cyprus Today, when diggers moved in to start con- negotiations process. struction work for a new house on 78-year-old Nicolas Skourides’ plot where his family’s home Aid to Greek Cypriots and Maronites living in once stood, police were called to calm a group the northern part of Cyprus has been delivered of Turkish Cypriot villagers who opposed the for the first time following the lifting of the con- construction. The villagers said, they would troversial customs duties, which had been petition to stop Skourides building a house in imposed by the previous government. The con- their village. signment from the south was distributed by UN peacekeepers to 64 Maronites at the village of The European Commission’s Head of Unit for Kormakitis (Korucam) and to Greek Cypriots in Cyprus Settlement, Kjartan Björnsson said that Karpass. All items had labels on them warning they were working on broadening the Green that it was illegal to sell them. Deputy Prime Line Regulation to promote trade between the Minister and Foreign Minister Kudret Ozersay two sides on the island; the volume of trade announced in March that the government was only €6 million in 2017. Björnsson also said would end the policy introduced by his prede- that, since 2011 an average of €32 million a cessor Tahsin Ertugruloglu last October. year of assistance has been given to the Turkish Ertugruloglu had justified the policy on the Cypriot side, the total amount reaching €485 grounds that the recipients of the aid were million. He added that they would continue to being sold rather than consuming, and that the support social and economic development, issue was being politically “exploited”. infrastructure development and the further development of civil society in the northern Turkey has donated $100,000 to the Committee part of the island. on Missing Persons in Cyprus (CMP). This brought the total contribution from Turkey to As in previous years, trade unions from the both €909,500 over the past 11 years. “This donation sides held a rally to mark the labour day under to the CMP project on the exhumation, identifi- the slogan “We are determined: A solution, cation and return of remains of missing persons reunification and social justice”. A joint state- in Cyprus will contribute to the committee’s ment affirmed that workers were increasingly goal of identifying and returning as many facing social injustice and condemned conflicts remains of individuals as possible in order to in the region. Stating that workers on both sides bring an end to the suffering which has affected

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so many families for so many years,” a CMP coast of Egypt after a meeting held in Egypt spokesperson said. To date, the remains of 870 with his Egyptian counterparty Tareq El Molla. people – 695 Greek Cypriots and 211 Turkish On May 21, following a meeting between the Cypriots – have been identified and returned to their families for burial, according to CMP Regional Director of TOTAL Stephane Michel figures, although 1,132 are still unaccounted and President Anastasiades, the French compa- ny expressed its interest in participating in block for. The CMP says it relies on “donor support to alleviate the suffering of the concerned fami- 8 of Cyprus’ exclusive economic zone (EEZ). lies”. Michel did not give any further information on the share that the French company wished to acquire in block 8 or on the timetable for confirmation drilling in Calypso field in block 6. 2. Hydrocarbons

On May 2, Energy Minister Giorgos Lakkotrypis noted that Israel and Cyprus may be applying 3. Greek Cypriots for international arbitration to decide over a dispute regarding the distribution of natural gas Economic Developments from the Aphrodite block. Israel and Cyprus According to Eurostat Cyprus’s unemployment signed a delineation agreement in 2010 but rate dropped to 8.6% in April, the first time haven’t agreed so far on how to develop gas since December 2011, slightly above the euro reservoirs straddling both of their economic area’s average. Cyprus’s unemployment rate zones. The Israelis estimate the quantity of gas remains the six-highest in the EU. on their side at 7-10 billion cubic metres (bcm), while the gas in the Cypriot section of the In a statement outlining its country specific reservoir, owned by Yitzhak Tshuva-controlled recommendations on May 23 the European Delek Group, is estimated at 100bcm. In the Commission requested from Cyprus to reduce absence of a distribution agreement, Israel is the non-performing loans in the banking sys- refusing to allow Cyprus to develop Aphrodite, tem, overhaul its public service, its judicial sys- because pumping gas from it will also cause gas tem, reform its economy, education system and to be pumped from the Yishai prospect. healthcare by 2019. In particular Cyprus should:

The Minister also revealed on May 7 that • Take measures to fully operationalise the Cyprus and Egypt are close to signing an agree- insolvency and foreclosure frameworks and ment for an underwater pipeline that will con- ensure reliable and swift systems for the nect the natural gas resources of Cyprus to the

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issuance of title deeds and the transfer of according to the same service the Cypriot econ- immovable property rights, omy expanded by 3.8%. • reduce the non-performing loans stock in the system, Domestic Developments • adopt key legislative reforms to improve On May 29, main opposition leader of AKEL efficiency in the public sector, leader Andros Kyprianou accused Anastasiades • relaunch its privatisation programme, over his handling of the negotiations in Switzer- • prioritise the implementation of key ele- land, following an interview the latter gave to ments of the action plan for growth, Phileleftheros newspaper. Kyprianou accused • carry out reforms that will help the employ- the President of “working to cover his unpopu- ment prospects of young persons with im- lar policies with contradictions, regressions proved schools and vocational training, inaccuracies, distortions and half-truths”. Ana- • reform its education and training system by stasiades responded that this only led to boost- finally introducing the evaluation of teach- ing Turkish intransigence and support for the ers, Turkish positions. The President also stressed • ensure that the national health system that he would not let the Greek Cypriot side which was passed into law last year, should take the blame for the impasse in the Cyprus become fully operational in two years, talks in Crans-Montana (July 2017). Regarding the different interpretations of the Guterres According to the Statistical service tourist arri- framework, Kyprianou noted that there is only vals rose 9.7% in April, to 314,143, compared to one Guterres document which is dated June 30 a year before. Arrivals from the UK, from which and that Anastasiades is trying to confuse the Cyprus traditionally attracts the bulk of incom- Greek Cypriot community. ing tourist flow, rose an annual 4.1% in April, to 110,689, while those from Russia, the second Labour Relations and Trade Unions most important source of tourism, rose 4.3%, to 49,040. A strike took place at Strovolos Municipality in protest again the plans of the Municipal Council According to a statement issued on the Statisti- to outsource garbage collection to the private cal Service website on May 15 the government sector. The strike was led by the trade unions generated a fiscal surplus of €297.3m in the first PEO, SEK and DEOK who had warned about it quarter of 2018, compared to a surplus of several months ago. The trade unions stated €166.3m in the respective quarter of 2017. that privatization and the creation of private Again for the first quarter, total government monopolies will have a negative impact not only revenue rose an annual 9.5%, to €1.9bn, while total spending rose 2%, to €1.6bn. Moreover,

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on workers and labour relations but also on the be introduced along with a reform of the taxa- quality of the services to the public. tion system.

As a reaction to the increasing number of acci- Tension in the hotel industry continues to build, dents at work, PEO organized a protest and as hoteliers demand permission to employ third submitted a memorandum of demands to the country workers. The trade unions view this as Minister of Labour. PEO stated that the increase unacceptable in a time when there are more in the number of accidents is related to the than 30.000 registered unemployed as well as economic crisis and the unwillingness of many more thousands available EU workers and employers to abide by health and safety regula- consider this an attempt by employers to fur- tions. It proposed the amendment of legislation ther reduce the wages in the sector. to allow for bigger fines for guilty employers, obligatory training on health and safety at work In the Cooperative Cyprus Bank, which is due to of all new workers and for all workers in dan- be sold to a private bank, it is estimated that 800-1.000 employees will be made redundant gerous occupations, more frequent inspections and increase of the number of inspectors and before the sale is completed so that the state public campaigns. SEK issued an announcement assumes the responsibility to compensate them and not the new investor. SEK had a meeting with similar proposals that also included the establishment of a national telephone line for with the Finance Minister who reaffirmed that anonymous reporting of violation of health and in one way or another, the state will support the employees of the Cooperative Cyprus Bank. safety regulations. PEO commenting on the efforts of a network to PEO and SEK issued statements against the government’s suggestion that the special annu- promote the Guaranteed Minimum Income al fee of 350€ to firms could be abolished. PEO (GMI) Scheme to an EU-wide level stated that “the GMI is not a comprehensive system of claimed that employees bore the brunt of the social protection” and from the Cyprus experi- crisis and in a country which is “a champion in social inequality” the government wants to ence it can be said that it is a vehicle of restrict- deprive the state of “the limited contribution ing the scope of social policy merely diverting resources from the poor to the poorer. A truly made by capital”. SEK stated that a new tax policy is needed to reduce the taxation burden progressive social policy cannot restrict itself to on employees and not the small symbolic dealing only with the already marginalized groups but should operate with a preemptive amount that firms are made to pay at a time when wage rates are low and profit rates up. mechanism that combats poverty and social SEK also suggested that green taxation should inequality. More resources and improved struc-

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tures are needed in order to achieve a compre- and as contributing in labour market deregula- hensive system of social protection, stated PEO. tion. While different branches of power contest bills, “illegality proceeds with its own fast Contention emerged between the trade union rhythm”, claimed SEK in its announcement. of public doctors PASIKY and the Minister of Health and between the trade union of teachers PEO met President Anastasiades and submitted POED and the Minister of Education after a to him a memorandum with its positions tragic accident had resulted in the death of a emphasizing the need for quality work positions ten-year-old boy while attending school. Two and regular terms of employment as a neces- doctors were arrested and charged for negli- sary corollary of development. Among PEO’s gence in their duties while an investigation claims were: legal tools to obligate employers begun against the boy’s teacher. Heated public to abide by collective agreements, minimum debate followed the accident with respect to rights for all those not covered by collective the responsibility about the conditions in which agreements, the termination of the “sale of the accident occurred and issues of under- services” as a tool to conceal dependent staffed and insufficiently equipped hospitals employment and the introduction of specific and schools came to the fore. PASIKY also regulations about the criteria of dependent staged a short strike in protest of the “penaliza- employment. PEO demanded the recognition by tion of medical practice” and the indiscriminate the government of thousands such as workers humiliation of the health professionals by the as employees. Furthermore, PEO asked for the government which “tried to hide its own maintenance and strengthening of Provident responsibility”. POED similarly accused the Min- Funds as separate institutions different from ister of handling inappropriately the whole inci- private schemes, a series of reforms on welfare dent who referred to inadequate teachers in his policy, the support of the Social Insurance Fund public intervention. President Anastasiades and the implementation of the National Health backed his ministers and said he will not toler- Scheme. ate “trade union fiefdoms” anywhere which in turn provoked the reaction of other trade unions as well with PEO stating its disaffection 4. Turkish Cypriots with a government that “tries to devalue trade unionism” by blaming it for its own failures in Economic Developments the key sectors of health and education. According to the data from the State Planning SEK considers the delay of the parliament to Organization the monthly inflation reached legislate the Unified Inspection Service as unac- 2,75% in April, the highest monthly figure in ceptable and as encouraging undeclared work over ten years. Since December 2016, annual

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inflation rate has been on two-digit levels. The has been frozen after a Turkish investigation rise has been attributed to the depreciation of alleged they were sending huge amounts of Turkish lira. money abroad to avoid taxation. The probe by the Council for Investigation of Financial Crimes In the first four months of 2018, although no was said to have been ordered by the top pros- funds were received from Turkey, the budget ecutor in Gaziantep (Turkey). Reportedly, find- gave a surplus of TL 76.2 million. According to ings, including alleged illegal betting and mon- the data from the Ministry of Finance, the total ey-laundering, could lead to the unnamed casi- revenues reached 1.4 billion TL while the nos having their licences cancelled and arrests expenditures were 1.3 billion in the January- being made. Prime Minister, Tufan Erhurman April 2018 period. and Finance Minister, Serdar Denktas said ini- According to the first quarterly report of the tially they knew nothing of the issue, but Turkish Cypriot Central Bank, the total assets of Erhurman confirmed later they had both spo- the banking sector, which was TL 26.1 billion at ken to Turkish officials about it. the end of 2017 December, increased by 6.06% According to the US Department of State's in the first quarter of 2018, while credits allo- International Narcotics Control Strategy Report cated rose by 5.81%. (INCSR) dated March 2018, the northern part of According to the report of daily Yeniduzen, the Cyprus “lacks the legal and institutional frame- number of registered workers from countries work necessary to provide effective protection other than Turkey increased by 150% in the last against the risks of money laundering. However, four years, from approximately 4.000to 13- Turkish Cypriot authorities have taken steps to 14.000. The improved socio-economic condi- address some of the major deficiencies, alt- tions of the workers in Turkey has slowed down hough ‘laws’ are not sufficiently enforced to the flow of workers from this country; currently effectively prevent money laundering. The casi- the number of registered workers with Turkish no sector and the offshore banking sector citizenship is around 32.000 while it was 27.000 remain of concern for money laundering in 2013. As a result, the employers who seek abuse.” cheap labor turned their attention elsewhere. Relations with Turkey The allegations about the way these workers come to the island, raises serious concerns with The Turkish Cypriot government has signed the regards to the illegal trafficking of human third annual program of the 2016-2018 Finan- beings. cial Protocol with Turkey, which will release TL 1.23 billion (€232 million) in aid (TL 635 million) According to a report in Cyprus Today, up to and loans (TL 595 million) from Turkey. Prime $100 million in the bank accounts of 13 casinos

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Minister, Tufan Erhurman pointed out that this declared assets as part of an anti-corruption was a “routine” signature to free up financial drive. Ozersay said, that deputies would be resources agreed in the 2016-18 protocol, while forced to explain any discrepancies compared negotiations would start soon on a new proto- with previous declarations. “This was in the col to cover the period 2019-2021. government programme … We will keep our promise,” Ozersay added. 420 million of the loans will be conditional and released in accordance with the implementa- Earlier this year, Judge Tacan Reynar, who was tion of the 2018 Structural Transformation Pro- provided with round-the-clock protection after gram, while 100 million will be used to plug the receiving death threats announced his resigna- current budget deficit. This represents a 50% tion. Judge Reynar, who presided over the trial cut compared to 2016. The rest will go to “other of six perpetrators who were found guilty of payments”. Defence, infrastructure investments attacking the offices of daily newspaper Afrika and real sector investments are transferred to in January 2018, announced his resignation via the TRNC as aid/grants. So far there has been his personal Facebook page: “There is no mean- no transfer of funds from Turkey to the TRNC in ing and importance for me to continue with this 2018. Finance Minister, Serdar Denktas said job in this order,” he wrote. In a second post, he funding under the agreement would start to added that he had not been referring “solely to flow in a month. the judiciary” but had been “talking about the whole system that had been set up in the north The Turkish Deputy Prime Minister responsible of Cyprus”. for Cyprus Affairs, Recep Akdag, visited the northern part of Cyprus and held meetings with The government decided to strip more than 170 the president, prime minister and minister of people of their TRNC citizenship on the grounds foreign affairs. He also took part in the first fast- that these citizenships had been granted illegal- breaking dinner of this year’s Ramadan in Nico- ly by the previous government. sia. According to Cyprus Today, supermarkets may The Minister of Education and Culture Cemal close for one or two days in protest at “unfair Ozyigit held a meeting with Akdag in Ankara. competition” from military-run grocer- ies/markets that are also open to civilians. Domestic Developments “Goods on sale in military shops are duty-free because they are supposed to serve only the The Deputy Prime Minister and Foreign Minis- armed forces,” said spokesman for the Super- ter, Kudret Ozersay announced that he had market Entrepreneurs Platform Taner Nizam. asked the Speaker of Parliament’s office to “Military shops have captured 30% of the civil- launch a review of members of parliament’s

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ian market … Members of the public think that 5. FES Cyprus Events supermarkets are ripping them off when they compare prices,” Nizam added. He also said May that his organization had outlined its complaints to the government and demanded a solution: “We have written to the coalition parties and also explained the situation to the Turkish Min- Monday, 7th May 2018, 10 am – 11:30 am ister of Customs and Trade, Bulent Tufekci, Civil Society Advocates / FES / KEPLI when we visited Turkey”. Presentation in Greek Nine Syrian refugees’ bodies have been found New Law on Associations and Foundations washed up on the shores of the Karpass penin- sula. They were believed to have been aboard a Youth Multicentre, Apostolou Pavlou and boat which capsized en-route to Cyprus from Gladstonos Corner, 8046, Paphos, Cyprus Mersin. The relatives, who are also refugees Open to the public living in the south, reportedly received special permission to attend the funeral on the divided island. In the south, the head of the Interna- tional Organization for Migration (IOM), said  the death toll in Karpas was a concern for eve- ryone.

th “This incident shows the need for legal migra- Thursday, 10 May 2018, 5pm – 7:30 pm tion pathways in order to avoid the repetition Civil Society Advocates / FES of phenomena that put human lives in danger,” Presentation in Greek said Natasa Xenophontos-Koudouna, head of the IOM Office in the Republic of Cyprus. New Law on Associations and Foundations

Journalists’ House, 12 CyBC (RIK) Avenue Aglantzia, Nicosia 2120, Cyprus

Open to the public 

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Tuesday, 22nd May 2018  Civil Society Advocates / KEPLI / FES

Presentation in English Tuesday, 12th June 2018 New Law on Associations and Foundations PRIO Cyprus Center / FES Ayia Napa Municipal Museum, 14, Kriou Nerou Workshop Avenue, 30707, Ayia Napa, Cyprus Environment and Security in the Eastern Open to the public Mediterranean Region

June Home for Cooperation, UN Buffer-Zone, Nicosia, Cyprus Tuesday, 05th June 2018, 6pm – 9pm Open to the public SeeD / US State Department / British High Commission in Cyprus / Interpeace /FES Conference  Gender SCORE Cyprus Final Event

Ledras Palace, UN Bufferzone Nicosia, Cyprus Thursday, 28th June, 10:30am – 7:30 pm

Open to the public PRIO Cyprus Centre/ Sustainable Peace and Democratic Development (SeeD) / FES  Conference

Wednesday, 06th June 2018 Nothing Is Agreed Until Everything Is Agreed: A Comparative Evaluation of the Civil Society Advocates / FES Comprehensive Settlement Approaches Presentation in English Venue: Home for Cooperation, 28 Marcou New Law on Associations and Foundations Dracou Street, 1102, Nicosia, Cyprus

Home for Cooperation, UN Buffer-Zone, Open to the public Nicosia, Cyprus  Open to the public

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FES CYPRUS NEWSLETTER Nr. 72/ May 2018

Imprint:

Friedrich-Ebert-Stiftung (FES) Office Cyprus 20, Stasandrou, Apt. 401 CY 1060 Nicosia

Tel. +357 22 377 336 Email: [email protected] Web-Seite:www.fescyprus.org Facebook: www.facebook.com/FEScyprus Twitter: @FESCyprus

Text: Hubert Faustmann, Yiannis Charalambous, Sertac Sonan, Grigoris Ioannou, and Sophia Papastavrou

Layout: Christiane Paparoditi

If you want to subscribe or unsubscribe to this (free) monthly newsletter, please send an email to: Christiana Paparoditi [email protected]

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