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Monthly Bulletin February 2012 Issue No. 23 Covering the period 1-31 January Cyprus News Agency London visit by Foreign Minister enhances relations

Cyprus Foreign Minister Erato Kozakou Marcoullis paid a visit to London on 25 January during which she had a working breakfast with UK Minister of State for Europe David Lidington and met shadow European minister Emma Reynolds of the opposition Labour Party. She also briefed members of the All Party Parliamentary Group (APPG) on Cyprus, chaired by Conservative MP David Burrowes, and delivered a major lecture on the geostrategic importance of Cyprus to the Hellenic Observatory of the London •Another tripartite meeting in New York... President Christofias (left) with UN Secretary General Ban Ki-moon and School of Economics. Turkish Cypriot leader Dervis Eroglu gather for further talks at Greentree. Dr Marcoullis briefed Mr Lidington about the latest developments on the Cyprus problem, including the further tripartite No progress in Greentree talks talks in New York (see adjoining report). She also reiterated the Cyprus Government’s The fifth round of tripartite talks on the on the key issues under discussion. He commitment to a bizonal, bicommunal Cyprus problem was held by President therefore declared his intention, subject federal solution, with political equality as Demetris Christofias, Turkish Cypriot leader to the recommendations of a report to defined by relevant UN Security Council Dervis Eroglu and UN Secretary General be received from his Special Adviser on resolutions, with a single sovereignty, a Ban Ki-moon in the Greentree Mansion in Cyprus, Alexander Downer, and following single personality and a single citizenship New York on 22-24 January. The talks were consultations with the two sides in Cyprus, and in accordance with international law preceded by further UN-sponsored bilateral to call a multinational conference on the and the EU acquis. negotiating sessions undertaken between Cyprus issue in late April or early May. She underlined the constructive stance the two leaders in Nicosia on 4 and 9 On his part, President Christofias said adopted by President Demetris Christofias at January. that the clear prerequisites put forward by the negotiating table, expressing regret that In preparation for the Greentree the Greek Cypriot side at the Greentree talks the goodwill shown by the Greek Cypriot talks, President Christofias on 16 January were evident in the UN Secretary General’s side has not received a positive response convened a session of the National Council, statement. Noting that “discussions took from the Turkish Cypriot side. Instead, she his top advisory body on the Cyprus place without the achievement of progress noted, the Turkish Cypriot side has been problem, consisting of parliamentary again”, he stressed that , notwithstanding Mr backtracking even from previously found party leaders and senior ministers. The Ban’s statement, an international conference convergences. meeting issued a statement recording could not go ahead unless any progress Dr Marcoullis and Mr Lidington also majority agreement on a framework for the achieved is significant and the internal exchanged views on issues related to Greentree talks, saying that it included “the aspects of the Cyprus problem are resolved. Cyprus’ forthcoming tenure of the EU non-acceptance of time-frames, arbitration The President added that he was not Presidency in the second half of 2012, with or the convening of an international satisfied with the outcome of the Greentree particular emphasis on EU enlargement conference without agreement on essential talks expressing the view that “unless Turkey and developments in the Middle East and issues related to the internal aspects of the is truly pressed to change its stance”, it is from the countries of the “Arab Spring”. Cyprus problem”. “abundantly clear [that] there is no chance The two Ministers also discussed ways of Addressing a press conference after for an international conference to be further enhancing the already close bilateral the Greentree talks, Mr Ban reported that convened or for the Cyprus problem to be relations which exist between Cyprus and only “limited progress” had been apparent resolved.” the UK.

ECHR damages awards against Turkey • EU approval of deficit reduction • Cypriot Ministers visit Israel and Libya • Recovery of tourism • Christofias at start of Danish EU Presidency • Cyprus in EU defence chair ECHR damages awards against Turkey Development of Turkey was ordered by the European Court Cypriots as compensation for breaches of relations with Israel of Human Rights (ECHR) in Strasbourg on their right to peaceful enjoyment of their 10 January to pay damages of between properties in the Turkish-occupied area The state visit to Cyprus by Israeli President €100,000 and €8 million to eight Greek of Cyprus. The eight litigants were also Shimon Peres in November 2011 gave ECHR awarded €15,000 jointly for legal costs and impetus to the development of relations expenses. between the two countries in various The awards arose from a ruling by the fields. In January 2012 visits were made to ECHR in November 2010 that the property Israel by Commerce, Industry and Tourism rights of businessman Constantinos Lordos Minister Praxoula Antoniadou Kyriacou and and seven other Greek Cypriots in the by Defence Minister Demetris Eliades, with fenced-off Varosha district of the Turkish- both signing agreements establishing closer occupied town of Famagusta had been bilateral relations with Israel. violated by Turkey since the 1974 Turkish Mrs Kyriacou, heading a multi-member invasion of Cyprus and Turkey’s subsequent delegation, held on 24-25 January a military occupation of areas in which their number of meetings with Israeli ministers properties are located and officials with whom she discussed Cyprus is among seven of the 47 member issues dealing with energy, commerce, states of the Council of Europe with only industry, tourism, research and technology. one ruling recorded against it by the ECHR Describing her visit as “successful and very in 2011, according to official figures released substantial”, Mrs Kyriacou also had the on 27 January. Turkey tops the Council chance to brief her Israeli counterparts on •Imposing legal complex... The buildings of the European of Europe list with 159 convictions for the possibilities created by the discovery Court of Human Rights in Strasbourg, France. breaching human rights against it. of hydrocarbons in the Cypriot exclusive economic zone (EEZ) and the state of play regarding the second licensing round for the remaining plots in the EEZ of Cyprus. Marcoullis pays working visit to Libya Other co-operation projects discussed during Mrs Kyriacou’s visit included the A working visit to Libya on 19-20 January by Government of Libya and its desire to assist laying of an underwater electricity cable Foreign Minister Erato Kozakou Marcoullis in the reconstruction of the country. between Cyprus and Israel, which would be was the first Cypriot ministerial trip to that While in Tripoli, Dr Marcoullis inspected the first such link between the EU and Israel. country since the overthrow of the regime of the progress of repair work on the Cypriot Agreements on defence co-operation Colonel Moamer al-Gaddafi in August 2011. Embassy, which had suffered extensive and the exchange and protection of graded In talks with Prime Minister Abdurrahim damage during the fighting to depose information were signed on 9 January by Mr El Keib and other leaders, Dr Marcoullis Gaddafi. It is expected that the Embassy Eliades and Israeli Deputy Prime Minister expressed the support and solidarity of will become fully operational again on 1 and Defence Minister Ehud Barak. Cyprus, as a member of the EU, for the new March. Tourism industry EU approval of budget deficit reduction recovers in 2011 Finance Minister Kikis Kazamias on 11 reduction programme in his rejection as Official figures for 2011 showed that January welcomed an assessment by the “arbitrary” of a decision by the Standard Cyprus’ tourism had bounced back European Commission in Brussels that and Poor’s agency to downgrade Cyprus’ from a downturn in 2010, achieving Cyprus has taken effective action to correct credit rating by two notches. Similar Cypriot higher arrivals of holiday-makers and its excessive budget deficit in a timely and criticism was directed at a decision by the tourism revenue despite a challenging sustainable manner. The assessment was Fitch agency on 27 January to include international economic situation. endorsed on 23 January by the EU Economic Cyprus in a downgrading of six eurozone Tourist arrivals in 2011 totalled and Financial Affairs Council (ECOFIN), which countries. 2,392,228, an increase of 10.1 per cent Council of the EU found that Cyprus is on course to reduce its over 2010, whilst revenue from tourism deficit to below the Maastricht ceiling of3 in the 11-month period January- per cent of GDP in 2012, as provided for in November increased by 13 per cent to the Government’s state budget for 2012 €1,708 million. Arrivals from Russia rose adopted by the House of Representatives in by about 50 per cent in 2011, although December. the UK remained by far the largest single Mr Kazamias reported after the ECOFIN source of holidaymakers to Cyprus. meeting that Cyprus had been given To maintain the impetus, the specific praise by European Economic and Government on 4 January signed a new Monetary Affairs Commissioner Olli Rehn agreement for the stimulation of tourism and the Governor of the European Central with Hermes Airports, the operator of Bank, Mario Draghi. Mr Kazamias said that Larnaca and Pafos International Airports. Commissioner Rehn had declared that The agreement features various incentive “in a short period of time and in a decisive schemes for airlines and envisages that manner Cyprus has adopted measures that tourist arrivals would increase by 3.5 are considered very satisfactory to help million a year over a five-year period and reduce the budget deficit”. that annual revenue from tourism would Mr Kazamias on 14 January cited the •ECOFIN encounter... Cyprus Finance Minister Kazamias (left) rise by €2.3 billion. Commission’s approval of Cyprus’ deficit- with Irish counterpart Michael Noonan in Brussels. Foreign Minister Inauguration of Danish EU Presidency on responsibility President Demetris Christofias attended the Cyprus will take over the role in the second formal launch at a ceremony in Copenhagen half of 2012. Denmark succeeded Poland in on 11 January of Denmark’s six-month the Presidency, these two member states of EU Presidency term in the EU Presidency, following which being part of the “Trio” with Cyprus which

Danish EU Presidency has drawn up policy plans for the 18-month The “huge responsibility” of Cyprus’ period. occupancy of the EU Presidency in the While in Copenhagen, President second half of 2012 was referred to on 5 Christofias had talks with new Danish Prime January by Foreign Minister Erato Kozakou Minister Helle Thorning-Schmidt, with Marcoullis, who expressed confidence whom he discussed the common goals of that Cyprus would succeed in meeting the the Danish and Cypriot EU Presidencies to challenge “if we all stay united like a fist”. address the current crisis in the Eurozone Dr Marcoullis made special reference with actions of social cohesion and a return to the fact that from 1 January, when the to economic growth, for the benefit of EU Cypriot Defence Ministry had assumed the citizens. President Christofias also briefed EU chairmanship for defence and security Ms Thorning-Schmidt on developments in matters (see report on this page), eight negotiations on the Cyprus issue (see page accredited Cypriot embassies around the 1). world, and particuarly in Latin America, The Danish Prime Minister accepted have undertaken representation of the EU an invitation from President Christofias to in countries where the EU has no diplomatic visit Cyprus within the framework of the representation. enhancement of co-operation and co- lIn an interview with the Cyprus News ordination between the EU Presidencies of Agency released on 12 January, Dr Marcoullis •Copenhagen concert... Marking Denmark’s EU Presidency. Cyprus and Denmark.q declared that the Cyprus Government would not allow Turkish provocations to affect its handling of the EU Presidency. She was responding to a series of threats by Turkey Cyprus takes EU defence policy presidency in recent months that, despite being an EU candidate country, it would not recognise The Cyprus Ministry of Defence assumed military capabilities. Cyprus will also host Cyprus’ tenure of the EU Presidency and the presidency of the EU’s common security a conference of the EU Defence Policy would boycott EU procedures during its six- and defence policy (CSDP) on 1 January—six Directorate in February. month term.q months ahead of Cyprus’ assumption of the lAn enjoinder that Cyprus should not try to EU Presidency for the second half of 2012. promote national objectives during its EU This was because Denmark, the holder of Presidency was given on 11 January by Mr the EU Presidency in the first half of 2012, Eliades, who said Cyprus should be aware Sylikiotis discusses does not participate in the EU’s security and that the interests of the EU as a whole take defence policy pillar, whereas Cyprus does. precedence. Speaking at a seminar organised Defence Minister Demetris Eliades by the Ministry of Defence in Nicosia, Mr EU asylum policy explained that Cyprus had taken early Eliades described the EU Presidency as responsibility for the Athena Mechanism for “the biggest challenge for our country” with EP rapporteur financing EU military operations established and an examination in which “we ought to The proposed Common European Asylum in 2004 and had assumed the presidency prove that we are a member state that is System (CEAS), which is expected to be of the EU’s Military Committee and specific capable of dealing with all the demands and q finalised during Cyprus’ EU Presidency in the working groups on target-setting as regards responsibilities put before us”. second half of 2012, was the principal topic of discussions between Interior Minister Neoklis Sylikiotis and European Parliament Christofias at meeting of EU Socialist leaders rapporteur for the Dublin regulation, MEP Cecilia Wikstrom of Sweden, in Nicosia on 28 President Demetris Christofias attended way for a sound dialogue aiming to build a January. a pre-European Council meeting of Prime European social model that will focus on the Mr Sylikiotis said after the meeting Ministers belonging to the Party of European individual and his needs and will be based that completion of the CEAS by the end of Socialists (PES) in Brussels on 30 January. on the best practices and achievements of 2012 “constitutes a priority for the Cypriot Discussions focused on the current financial the most advanced EU member states”. q Presidency as well as for the EU”. He added: crisis in the Eurozone and the problem of Gleamlight “The European Parliament’s support in our unemployment in the EU, particularly among effort is very important. In this framework young people. we will continue our co-operation with the It was President Christofias’ first EP so that we manage to overcome any attendance at a PES leaders’ conference, difficulties and differences.” to which he had been invited “as the In her remarks, Ms Wikstrom progressive leader” of the next EU Presidency acknowledged that Mr Sylikiotis is putting in the second half of 2012. He called in his all his energy into the goal of completing speech to the gathering for the support and the CEAS by the end of 2012, “as we have co-operation of European Socialists during promised our citizens”. She expressed Cyprus’ Presidency, particularly as regards confidence that the goal would be achieved the promotion of social cohesion measures. under the Cyprus Presidency, “even though President Christofias declared that “it is the work is very hard and we still have many imperative during the Cypriot Presidency to •Brussels conference... President Christofias (left) with obstacles to dismantle”.q spare no efforts with a view to paving the leaders of the Party of European Socialists (PES). In Focus..Focus... Capital city Nicosia combines old and new

Nicosia (Lefkosia), the capital city of the Famagusta Gate, one of the three original The Nicosia International Conference island of Cyprus, combines both old and entrances into the old city, which has been Centre has been refurbished at a cost of new in a busy modern commercial and restored and is used as a cultural centre. €25 million. Its first important role will be to business centre and a centuries-old culture The new town spreads beyond the walls host ministerial meetings during Cyprus’ EU dating from Roman and Byzantine times. with a modern centre and offers the best in Presidency in the second half of 2012.

The centre of the city is its old quarter shopping. Of the city’s museums, the Cyprus Cyprus Tourism Organisation surrounded by a Venetian sandstone Museum houses the biggest collection fortress wall with a moat and heart-shaped of archaeological artefacts on the island, bastions. Wander round narrow streets with including a first century AD Roman statuette overhanging balconies and the beautifully of Aphrodite of Soli and the original mosaic restored pedestrian precinct with craft of Leda and the Swan. The Archbishop shops, tavernas, fantastic open markets and Makarios II Cultural Foundation Byzantine museums. Make sure you stop off at Agios Museum is home to the richest collection Ioannis Cathedral with its frescoes and the of Byzantine art in Cyprus with more than marvellous museum of Byzantine icons. A 200 icons and several spectacular mosaics short walk away is the Omerie Mosque which on display, while the Leventis Municipal was originally an Augustinian church, built Museum is dedicated to the city’s history. in the 14th century and dedicated to the Nicosia remains the only divided capital Holy Mary. It was converted into a mosque city in Europe, split into two by a line of by Mustafa Pasa in 1571, as he claimed that division dating from Turkey’s invasion of the Church was built on the spot where Cyprus in 1974 and subsequent military Khalif Omer rested. In the evening catch a occupation of the northern part of the concert in the moat or an exhibition at the island, including the north part of Nicosia. •Impressive facade... The entrance to Nicosia Town Hall.

between Cyprus and France in 2012 was announced by Defence Minister Demetris N otes && NN ewsews Eliades on 24 January after talks with the Council of Europe the Palm Beach and Golden Bay in Larnaca French Deputy Chief of Staff, Admiral in the south-east and the Aquamare Beach Philippe Combes, who was visiting Cyprus. and Aphrodite Hills in Pafos on the west On 28-29 January the newest French air coast. defence destroyer, the Chevalier Paul, docked The opening in April of its first base in at Limassol port within the framework Cyprus, and its 50th around the world, was bilateral military co-operation between announced by Irish budget airline Ryanair Cyprus and France. on 10 January. Located at Pafos International Airport, the base will operate over 80 weekly flights on 14 routes, on which 600,000 Sporting Highlights passengers a year are initially expected to travel. Some 600 jobs are being created at Olympic Games. Four members of the the base, in which Ryanair is investing over Cypriot team that will compete in the 2012 US$140 million. summer Olympic Games in London in July- Former President George Vassiliou on August attended a gathering organized 12 January inaugurated the €3.5 million by the UK High Commission in Nicosia on Cy-Tera computer project at the Cyprus 11 January to mark the start of the 200- •Striking poster... For the Council of Europe’s “One in day count-down to the Games. They were Five” campaign, in which Cyprus is participating. Institute (CI), which is intended to provide a pioneering high-performance computing Apostolos Parellis (men’s discus), Leontia Labour and Social Insurance Minister infrastructure for local and regional Kallenou (women’s high jump), Chrystaleni Sotiroulla Charalambous on 9 January academic communities. The project is co- Trikomitou (women’s rhythmic gymnastics) chaired the first meeting in Nicosia of the funded by the EU, the Cyprus Government and Pavlos Kontides (sailing). national committee for Cyprus’ participation and the Research Promotion Foundation. CI Football. The Cyprus Football in the Council of Europe’s “One in Five” president George Papanicolas described Cy- Association was ranked 28th out of 122, campaign aiming to prevent sexual Tera as “tens of thousands stronger than the a rise of seven places, in the 2011 world violence against children. Ms Charalambous computers we know in our daily lives” and as football league rankings by the International said that the campaign, named after the “a step towards the realisation of the vision Federation of Football History and Statistics. fact that one in five children in Europe are of turning Cyprus into a regional research The latest ranking by the International victims of sexual violence, aims to achieve centre”. Federation of Association Football (FIFA) put the ratification of a relevant Council of Cyprus moved up nine places, from the Cyprus national football team in 126th Europe convention and also to raise public 49th to 40th, in the World Bank’s latest place out of 206. awareness of the problem. “Doing Business Report” covering 183 CYPRUS NEWS - BRUSSELS EDITION is produced The Government on 24 January signed countries, as revealed on 17 January at an monthly by the Press Office of the Permanent contracts with eight hotels which will event in Nicosia organised by the Cyprus Representation of Cyprus to the EU. To receive a regular provide accommodation and services for the Investment Promotion Agency (CIPA). The copy by email, please contact: The Press Office of the Permanent Representation of Cyprus to the EU, 61 Avenue many additional visitors expected during survey measures the ease of doing business Cortenbergh, 1000 Brussels, Belgium. Tel: 02 7398201, Cyprus’ tenure of the EU Presidency in the in each country, ranking them in 10 areas Fax: 027366573, email: [email protected] second half of 2012. Selected by competitive of regulation to determine how friendly Links Cyprus Government: www.cyprus.gov.cy tender, the hotels are the Hilton and Hilton they are to the starting-up and operation of Ministry of Foreign Affairs: www.mfa.gov.cy Park in Nicosia, the Crowne Plaza and Grand businesses. Permanent Representative of Cyprus to the EU Resort in Limassol on the southern coast, A programme for military co-operation www.mfa.gov.cp/permrepeu