FES NEWSLETTER NR. 98 / JULY 2020

Contents

1. New and Upcoming Publications/Podcasts (www.FEScyprus.org) ...... 2

1. FES Cyprus Events ...... 3

2. Cyprus Problem ...... 3

3. Hydrocarbons ...... 6

4. ...... 7

Economic Developments ...... 7 Domestic Developments ...... 7 Labour Relations and Trade Unions ...... 9

5. ...... 9

Economic Developments ...... 9 Relations with ...... 10 Domestic Developments ...... 10

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FES CYPRUS NEWSLETTER Nr. 98 / JULY 2020

1. New and Upcoming Publications/Podcasts (www.FEScyprus.org)

August September

Hubert Faustmann, Gregoris Ioannou, Sertac Ömer Gökçekuş, Sertac Sonan Sonan Socio-Economic and Political Impact of Cyprus, Trade Union Monitor Austerity Policies in North Cyprus: Report A Brief Assessment (In English, German) (In English, German, Greek, Turkish)    Sertac Sonan, Ebru Küçükşener, Enis Porat Ömer Gökçekuş, Sertac Sonan Politics and Society in North Cyprus: A Survey Corruption Perceptions in North Cyprus: 2019 Study, 2019 Report Report (In English, German, Greek, Turkish) (In English, Turkish)    Podcasts

Cihan Dizdaroğlu Podcast: The Impact of the Covid-19 Pandemic The Perceptions of Cypriot Youth Matter 2019 on Cyprus as a new Migration Hotspot FES/PRIO Briefing/Report With Nicos Trimikliniotis, (In English) Professor of Sociology at University of .  Head of the team of Cyprus’ team for the Fundamental Rights Agency of the EU. (In English)  https://www.fes.de/mediathek/hoerbar/pe rmalink/the-impact-of-the-covid-19- Elias Ioakmoglou, Nicos Trimikliniotis pandemic-on-cyprus-as-a-new-migration- The Post-Pandemic Stimulus to Restart the hotspot Cypriot Economy: A Wage-led Growth Strategy

Report

(In English)     

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FES CYPRUS NEWSLETTER Nr. 98 / JULY 2020

1. FES Cyprus Events not re-enter the Greek Cypriot side if they are not residents in the south. The same re- All upcoming public events have been can- striction applies to EU citizens living in the celled until further notice in response to the north. spread of the corona virus. Political parties represented in the TRNC1 par- liament issued a joint declaration on July 13 calling on the Greek Cypriot authorities to 2. Cyprus Problem stop preventing foreign nationals from cross- ing to the north. The statement said that since On July 6, new crossing measures were an- July 1, when the TRNC started allowing in nounced by the Turkish Cypriot side. The tourists, the Greek Cypriot side had banned measures created confusion especially among the free movement of people between the and Tylliria residents which have two sides with a view of undermining the been using the Limnitis crossing point. This Turkish Cypriot economy. The declaration crossing was the last to open after the two argued that this was in violation of the Green sides relaxed restrictions in June. Line Regulation and the parties called on EU officials to take the initiative so that condi- On July 7, UNFICYP engaged with the Turkish tions return to the pre-pandemic period. Cypriot side to clarify the situation that re- sulted in a revision of the crossing measure- Several protests were staged on the Turkish ments announced. According to the updated Cypriot side of two crossing points on July 17, measures of July 9, individuals crossing be- calling on the Greek Cypriot authorities to lift tween the two sides will be required to carry restrictions particularly on tourists, crossing out a one-off coronavirus test within 72 hours over to the north. One protest staged by a before the crossing on the condition they group which included the Turkish Cypriot have not left the island in the last 14 days. Chamber of Commerce, Turkish Cypriot Random tests will be carried out at crossings. Further regulations stipulated that tourists 1 could cross to the north in particular from The Turkish Republic of (TRNC) is only recognised by the Republic of Turkey. While category A countries. But any possibility of for Turkey and the Turkish Cypriots, Mustafa tourists going north was effectively blocked Akinci serves as President of the TRNC, the by the regulations of the Greek Cypriot side. international community considers him the Those crossing into the south are required to communal leader of the Turkish Cypriots. As the government of the Republic of Cyprus remains present a negative test conducted within 72 internationally recognised as the government of hours before each crossing. Only Cypriots and the whole of the island, the entire island is now residents in the south can pass through the considered to be a member of the European crossings. Therefore, EU citizens can cross Union. However, the acquis communautaire is suspended in northern Cyprus pending a political from the south into the north, but they can- settlement to the Cyprus problem (see Protocol no. 10 of the Accession Treaty).

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Chamber of Industry, contractor companies, Akinci, in a written statement, reacted to the hoteliers as well as other stakeholders in the announcement by the US embassy in Cyprus tourism sector was held at the Agios of Washington’s intention to provide Interna- Dometios crossing point while a second tional Military Education and Training (IMET) demonstration was held by shopkeepers at to the Greek . Akinci the Ledra Street/Lokmaci crossing point. said that the US could only contribute to peace and stability in the region, not through Meanwhile, the Turkish Cypriot side protested military support and cooperation, but by pur- to the UN over the placement by the Greek suing a balanced approach to both sides and Cypriot side of trenches of portable heavy encouraging constructive dialogue and coop- weapons near the Limnitis crossing point. In eration between regional actors. particular TRNC Foreign Minister, Kudret Ozersay reportedly asked, in a letter to the The UN Security Council unanimously re- Special Representative of the Secretary- newed the UN’s Peacekeeping Force in Cyprus General in Cyprus and Head of UNFICYP Eliza- mandate for another six months on July 28 beth Spehar, for clearance of the trenches until January 31. The resolution called among near the crossing point. other: for the establishment of an effective mechanism for direct military contacts be- Ahead of the UNFICYPs mandate renewal, tween the sides and the relevant involved Spehar held separate meetings on July 14 and parties, the reopening of all the crossing 15 with both the Turkish Cypriot and Greek points and the return to the operating status Cypriot leaders, Mustafa Akinci and Nicos that existed prior to 29 February 2020 and Anastasiades, respectively. effective coordination and cooperation on On July 16 Turkish Cypriot leader Mustafa health matters, including the Covid-19 pan- Akinci stated that the authority and demo- demic. The mandate expressed concern over cratic legitimacy of the elected Turkish Cypriot the further escalation and increased tensions leader was not up for discussion. His state- in the eastern Mediterranean over hydrocar- ment followed Foreign Minister Nicos bons exploration. Christodoulides’ disclosure, that Ankara was A statement by the TRNC foreign ministry pushing for talks between Greek Cypriots and described the mandate as unfair on the Turkish Cypriots but with Ozersay instead of grounds that it allegedly allows the Greek Akinci. “The President of the TRNC is the only Cypriots to guide the agenda to divide the interlocutor for the Greek Cypriot side and the people, by failing to give emphasis to cooper- United Nations and is regarded as the Turkish ation on the economy, trade, tourism and Cypriot leader,” Akinci stressed, while adding policing. The statement noted that by this that the long-accepted parameters of the approach the Security Council reportedly Cyprus problem include talks between the cleared the way for the Greek Cypriots to leaders of the two communities on all issues avoid cooperation with the Turkish Cypriots. that concern the two sides.

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UNFICYP’s mandate renewal followed UNSG lation for a negative coronavirus test each Antonio Guteres’ report on the UN Peace- time one crosses to the south. keeping force released on July 16, which stressed that the absence of a solution is in- On 26 July, the /Akincilar Crossing Point Initiative organized a rally at the village creasingly unsustainable. In his report Guteres demanding the opening of a crossing point identified that rising tensions in and along the buffer zone, the possible opening of the ghost between Louroujina and the neighboring village. The group which gathered in town of Varosha, hydrocarbons exploration the Louroujina village square marched to- and maritime boundary delimitation are pos- sible sources of tension. wards the Lympia village. The event was at- tended by a large crowd which included the On July 3, the Turkish Cypriot Minister of For- Prime Minister Ersin Tatar. Reading a press eign Affairs Kudret Ozersay said work towards statement during the demonstration, Mayor reopening the fenced-off city of Varosha un- of Louroujina Hasan Barbaros thanked every- der the Turkish Cypriot administration had one, including the mukhtar and the residents reached its final phase. Varosha is a Greek of the Lympia village for their support in their Cypriot suburb of fenced off since campaign to open a new crossing point in the 1974. He said a field survey carried out within village to connect with the south side. He the framework of a protocol signed with a noted the actual distance from the north to local university was near completion. Touch- the south is approximately 500 metres, but ing upon the same issue, the Turkish Cypriot that Turkish Cypriots working in the south Prime Minister Ersin Tatar said on July 26, were forced to drive either to Nicosia or to “significant progress has been achieved in the Pergamos/Beyarmudu to cross over to the both technical and legal areas for the reopen- south to get to their jobs. “Nearly 60,000 ing of Varosha for the settlement of the for- people will have easy access to the south or mer residents of the town”. Speaking at a the north following the opening of the cross- gathering organized by his party in Famagu- ing points,” Barbaros concluded. sta, Tatar added: “The reopening of the July 20, marked the 46th anniversary of the fenced-off town, which had been left to its fate for years, will have both economic and 1974 Turkish invasion which resulted in the occupation of the island’s northern third fol- political benefits for the Turkish Cypriot peo- lowing a military coup engineered by the ple”. Greek military junta that toppled the govern- On July 21, the Turkish Cypriot side raised the ment of the Republic on July 15. Events and issue of reopening the Ledra street crossing memorials were held in the south while in the during a teleconference of the bicommunal north a low-key parade took place due to the Technical Committee on Health and the prob- pandemic, in celebration of what is officially lems caused by the Greek Cypriot side’s regu- considered by Turkey and the Turkish Cypriot side as a peace operation.

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Posters inciting hatred and directing threats ration by the Barbaros Hayrettin Pasa in Cy- at Greek Cypriots who cross over to the TRNC prus’ Exclusive Economic Zone (EEZ), east of were hung on the outer fence of the Famagusta, from July 28 until September 18. Bayraktar Mosque in south Nicosia. The post- The reserved area covers large swathes of ers which had “Fire and axes to those who Cyprus’ offshore blocks 2 and 3, and a small worship Turkish occupation” written in Greek, part of block 13. The move was considered as reportedly, caused an uproar on social media a signal to Nicosia that Ankara was only inter- where they were posted by an individual. A ested in resolving issues with Greece, and at far-right extremist group named the Revolu- the behest of Merkel and the EU, which Cy- tionary Liberation Front claimed responsibility prus, with the support of France, has been for the incident. pressing to take stronger measures against Turkey for its continued violation of its EEZ. Indeed, French President Emmanuel Macron 3. Hydrocarbons had called for a harsher EU reaction and sanc- tions against Turkey’s provocations in the eastern Mediterranean following a meeting in In July tensions between Greece and Turkey escalated, after Turkey issued on July 21 a Paris with Anastasiades on July 23. Navtex for seismic surveys south of Antalya, in On July 17, the House plenum ratified the waters between Cyprus and Crete. In re- agreement signed last January between Cy- sponse Greece and Cyprus issued a counter- prus, Greece and Israel on the East Med pipe- Navtex covering the same area. The Greek line, aimed to connect the gas reserves of the navy was put on standby and high alert, while eastern Mediterranean with Europe. The there was an increased presence of Turkish €6bn EastMed project entails a 1.900km natu- ships in the area. The situation de-escalated ral gas pipeline. The EU is to contribute €2bn after lengthy talks over the phone between of the overall cost. Turkish President Recep Tayip Erdogan and German Chancellor Angela Merkel, with Turk- On July 21, Chevron Corp announced the ac- ish Spokesman Ibrahim Kalin announcing on quisition for about $5bn of Noble Energy Inc July 28 that Turkey would pause energy- who is concession holder for Cyprus’ Aphro- exploration operations in the eastern Medi- dite field. Energy Minister Natasa Pilides re- terranean, pending talks with Greece. Kalin portedly received reassurances that Noble will stated that Ankara was ready to discuss all continue its obligations and will work with the issues, the Aegean, continental shelf, islands, government throughout the transition period airspace, research and screening efforts, and until the completion of the acquisition, ensur- the eastern Mediterranean along with other ing there will be a smooth transition. bilateral matters with Greece without any According to government spokesman Kyriakos preconditions. On the same day however, Kousios, during a phone call with Russian Turkey issued a new Navtex for seismic explo- President Vladimir Putin, Anastasiades briefed

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the former on Turkey’s latest activities, in- into a recession, estimated at 7.5% in 2020 cluding the issuance of a Navtex for explora- followed by a rebound of 5.5% in 2021. tion within Cyprus’ EEZ, as well as the pres- ence of the Turkish research vessel Barbaros, An EU27 Summit held in Brussels between EU which entered the island’s EEZ on July 30. leaders on July 17 agreed on the Multiannual According to a readout from the presidential Financial Framework 2021-27 and a Recovery palace, Putin promised to intervene with Fund pumping a massive amount of money Erdogan to defuse the crisis, but also to en- into economies. Cyprus is eligible for over gage in a creative dialogue to resolve the Cy- €2.7bn of which: €1,4bn will be raised from prus problem. the Multiannual Financial Framework 2021- 2027, and up to €1.3bn from the Recovery Fund, aimed at addressing the consequences of the pandemic and promoting the develop- 4. Greek Cypriots ment of the Cypriot economy.

Economic Developments According to the Cyprus Statistical Service tourist arrivals reached 9,119 in June 2020, On July 3, Parliament unanimously passed the compared to last June’s 509,662 arrivals, re- third supplementary budget for 2020, worth cording a 98.2% decrease. From January to just over €231m. The additional funds are June 2020, arrivals totalled 255,675, while last intended to cover increased costs until Octo- year arrivals totalled 1,631,023, a drop of ber 2020 of the labour ministry’s schemes 84.3%. The decrease is due to the entry ban aimed at further supporting the economy to imposed during the coronavirus lockdown address the effects of the Covid-19 pandemic. from March 2020 to June 8. On July 7, Cyprus raised €1bn after it re-

opened bonds due in 2024 and 2040 in a bid to absorb cheaper cash to repay more costly Domestic Developments debt. According to Finance Minister, Constantinos Petrides the strong demand In July, the confirmed COVID19 cases rose demonstrated the confidence of international from 998 to 1,114. In total 26 people with markets in Cyprus. Covid-19 have died, with the virus being the underlying cause of death for 19. A spike in Standard & Poor’s Global Ratings on July af- cases occurred in the last days of the month firmed its B+/B long- and short-term issuer the majority of which occurred in Limassol. credit ratings for Bank of Cyprus (BOC), main- taining a stable outlook, noting that the bank On July 26, Environmentalist and MP will be loss making in 2020 and 2021 and will Charalambos Theopemptou became the new return to profit in 2022. It added that the leader of the Green Party replacing Giorgos Covid-19 crisis will push the Cypriot economy Perdikis who was the leader of the party since

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2014. Theopemptou was named to the post On July 28, three MPs, and two senior officials during an extraordinary national conference. from centre-right DIKO announced they were resigning from the party for political reasons On July 28, the Ministry of Health announced and forming their own party. The party’s vice the revised lists of countries from which Cy- president Alecos Tryfonides and Christos prus accepts passengers which will be in ef- Tsingis, a member of the central committee as fect from August 1. According to the latest well as the three MPs, Georgios Prokopiou, update, the UK has been moved from catego- Angelos Votsis and Marinos Mousiouttas, ry C to B. Category A countries deemed safer issued their resignation from the party in a due to epidemiological outlook include: Aus- joint letter addressed to party leader, Nikolas tria, Germany, Denmark, Greece, Estonia, Papadopoulos. The letter stated that wider Ireland, Latvia, Lithuania, Malta, Hungary, political issues such as the economy and the Poland , Slovakia, Slovenia, Finland, Switzer- Cyprus issue had been shelved within the land, Iceland, Liechtenstein, Norway, Georgia, party, internal processes were discredited and Japan, Canada, New Zealand and South Korea. that DIKO changed its relationship with the Passengers from category A countries are not other political parties in its attempts to seek required to provide proof that they are not cooperation with the ruling party DISY. infected with Covid-19 and are not tested upon arrival. In category B, in which are coun- On July 31, Health Minister Constantinos Io- tries with potentially low risk but more pre- annou announced that everyone will have to carious than category A are: Belgium, France, wear masks in indoor crowded spaces includ- Spain, Italy, Croatia, The Netherlands, Czech ing malls, banks, supermarkets, hospitals and Republic, , Andorra, Monaco, churches. Those found not wearing a mask Vatican City, San Marino, , Morocco, will be fined €300. Ioannou also announced Rwanda, Thailand, Tunisia, Uruguay, and Chi- restrictions on gatherings in the Limassol dis- na. Passengers arriving from category B coun- trict, the centre of the recent spike in cases. tries are permitted to perform the COVID-19 There, no more than 10 people will be al- test upon their entry to the Republic of Cy- lowed to get together in social gatherings, prus and to self-isolate. Long awaited flights while the maximum number of customers in from the UK are set to resume on August 1 as restaurants, cafes and bars has been de- Britain has moved to a category B country, creased to 75 indoors and 150 outdoors. The though it comes at a time when cases are on announcement followed a meeting at the the rise on the island after weeks of low num- Presidential Palace between President bers and zero hospitalisations or deaths from Anastasiades and his advisory team after 48 Covid-19. The government announced that it new Covid-19 cases were announced from would accept negative coronavirus test certif- July 29 to July 31. icates issued by the British NHS from passen- Parliament on July 31 voted into law two bills gers arriving from the UK. and approved regulations aimed at tightening

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Cyprus’ citizenship by investment programme. 19. The hotel employees were rendered by One of the amendments came from the Green the state as not eligible for the special unem- Party which specifies that one of the condi- ployment benefit of 60% of the salary provid- tions in the scheme which sees the exchange ed to various people due to the COVID-19 of an investment for a passport, would be at crisis. This practice is considered unfair by least €100.000 going towards the national the trade unions because these employees solidarity fund for depositors, who lost funds are victims of the violation of the agreement during the 2013 haircut, as well as bondhold- for the winter suspension of hotel operations ers. by their employers and more specifically for the non-payment of 2.8% of their salary dur-

ing the suspension period.

Labour Relations and Trade Unions On June 24, on the occasion of two fatal la- On July 15, the drivers of the new Cyprus Pub- bour accidents within twenty-four hours, the lic Transport bus company held a three-hour Construction Workers' trade unions expressed strike. They protested against the exhausting its fears about the phenomenon of frequent 12-hour driving program without breaks. This labour related accidents and especially fatali- program was imposed on them by the new ties, and suggested three measures. Firstly, to company. According to the law, for every four establish mandatory training programs for all and a half hours of driving, a driver must take employees in the Construction Industry on a break of 45 minutes and in between he or issues related to safety and health; secondly she can take breaks of 10 minutes or 15 halting the unregulated entry of unskilled minutes. However, with the schedules and personnel in the construction industry, which itineraries imposed on them there is no time is characterized as “a minefield”. Finally, the for drivers to stop and take their breaks. Their reduction of long working hours which they demand concerns the working hours and identify as one of the causes of accidents. breaks of drivers as they are exhausting and endanger the safety of both drivers and pas- sengers. The trade unions asked from both 5. Turkish Cypriots the Ministers of Labour and Transport to help them find a compromise with the company. Economic Developments

On July 3, the trade unions protested outside The cost of living went up in June by 1.01%, the Ministry of Labour to support the season- according to the Statistics Department. The al hotel workers. They expressed outrage inflation in 2020 has reached 4.38%. regarding the unequal and unfair treatment of hotel employees by the state following the Figures released by the Chamber of Shop- closure of the hotels by decree due to COVID keepers and Artisans (KTEZO) indicated that

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more than 700 businesses have gone bank- A firefighting helicopter from Turkey has been rupt in the last seven months and only 30 new stationed in the TRNC to provide rapid re- businesses opened up in the last three sponse against forest fires during the summer months. Hurrem Tulga, General Coordinator months. of the KTEZO, said that a majority of business- es have been unable to weather the economic crisis caused by the lockdown. “Even though it Domestic Developments was believed that the normalisation process would have had a positive impact on the The Higher Electoral Council announced the economy, there is now a 60% drop in business schedule for the presidential election, which since restrictions were lifted and the reopen- will be held on October 11. The voters will ing process,” Tulga said. also vote in a referendum on a proposed con- stitutional amendment which will increase the According to the Department of Commerce, number of judges in the Supreme Court from imports in the first five months of 2020 de- ‘one chief and seven judges’ to ‘one chief and creased by around 50% compared to the minimum seven, maximum 16 judges’. The same period in 2019, from US$ 594 million to election campaign will begin on September 15 300 million. The Turkish Cypriot daily Diyalog and come to an end on October 10. The pres- reported that travel agents who believe it is idential election was scheduled to be held in not possible to carry out tourism with two April 2020; however, it was postponed by the flights a day have given up on 2020. Most parliament due to the pandemic. agencies have shut down their offices. Com- pared to 40 flights landing every day at Lar- Democratic Party Nicosia MP Serdar naca and Paphos airport in the south, the fact Denktash, announced his candidacy for the that only two flights land in the north per day upcoming presidential election. Denktash, has brought the tourism sector to the brink of who had resigned as the leader of the Demo- bankruptcy according to the report. cratic Party in September 2019, reminded that he had announced in January 2020 that he would not run, but due to the changes in con- ditions since then he had changed his mind.

Relations with Turkey Noting that there are no severe COVID-19 cases in the northern part of Cyprus, Prime Construction work has begun for a 500-bed Minister Ersin Tatar said that it is out of ques- capacity state hospital in Nicosia. The TRNC tion for those coming from Turkey to be put Health Minister and a delegation from the under isolation for 7 days (as recommended Health Ministry came together with the by the Contagious Diseases Committee), and members of a technical delegation from Tur- added that they needed to consider the key on July 22. economy when taking certain decisions. All

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arriving passengers in the north remain in Imprint: isolation until their PCR results are an- nounced. Friedrich-Ebert-Stiftung (FES) Office Cyprus Representatives of medical doctors Associa- 20, Stasandrou, Apt. 401 tion of Turkish Cypriot Doctors and the Union CY 1060 Nicosia of Doctors have expressed “great concern” over the increase of a fresh wave of Covid-19 Tel. +357 22 377 336 and have warned that the bed space in the Email: [email protected] Web-Seite:www.fescyprus.org Nicosia Public Hospital’s corona virus unit has Facebook: www.facebook.com/FEScyprus been filled to capacity. They warned that the Twitter: @FESCyprus virus has landed back in the country after steps were taken to “open up” to the outside Text: world with the start of flights. By the end of Hubert Faustmann, Yiannis Charalambous, the month, there were 21 COVID-19 patients Sertac Sonan, Enis Porat, Gianna receiving treatment in the hospital. Chatzigeorgiou and Sophia Papastavrou

In early July police shot at a boat carrying 30 Layout: refugees trying to land on the coast of north Gaby Hamann Cyprus. One refugee and the boat captain sustained minor injuries. According to Cyprus If you want to subscribe to this (free) monthly news- Today, five civil groups – Cyprus Turkish Bar letter, please fill in the form on our website: Association, Cyprus Turkish Human Rights www.fescyprus.org/newsletter/ foundation, Queer Cyprus Association, Refu- If you want to unsubscribe please click the link in gee Rights association and Human Rights your FES Newsletter mail. Committee, and the Republican Turkish Party (CTP) youth branch called for an “in-depth investigation” to be carried out, and ques- tioned whether gunfire was a “disproportion- ate” use of force. President Akinci asked the Head of Police Commissioner to launch an investigation.

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