CYPRUS NEWS EDITION

Monthly Bulletin March 2011 Issue No. 13 Covering the period 1-28 February EU internal energy market launched Editorial opinion

Council of the The decisions of the European Council on energy constitute a clear political message that safe, secure, sustainable and a ordable energy is a priority for the EU. They have put in place ambitious, but necessary, guiding principles which will dene the direction of the EU's energy policy up to 2020 and beyond. The elimination of energy isolation of all member states by 2015 constitutes a key element in achieving these goals. The European Council has made it abundantly clear that the EU will apply, in this respect, a comprehensive and inclusive approach. The Union is now committed to help develop the essential physical infrastructures and apply other policies and measures that will allow all member states to benet from a fully functioning, interconnected and integrated ŖEU leaders in Brussels... Setting energy policy goals for the future. internal energy market. When it comes to , which faces The EU’s commitment to a comprehensive infrastructure in order to safeguard the EU’s energy isolation due to its geographical energy policy was underlined by the 27 energy security. He referred to the particular position, this commitment will, most probably, Heads of State during the European Council situation of islands, such as Cyprus, which need to be translated into special measures which was convened by President Herman face isolation in terms of energy. “It is for and necessary adjustments. Tackling the Van Rompuy in Brussels on 4 February. these reasons”, noted the President, “that technical barriers and other challenges in order Attended by President Demetris Christoas, we believe that the EU approach must be for Cyprus to be fully integrated in the internal the gathering also dealt with innovation and inclusive and comprehensive so that all energy market and share in the added value the member states fully enjoy the benets this will bring to European citizens, is indeed the dramatic events in Europe’s southern a daunting task. That is why the commitment neighbourhood. stemming from these policies”. of the European Council is of fundamental On energy, the European Council agreed Cyprus: The current energy picture importance, giving a clear message that we on a number of priority actions to promote can rely on the collective e ort of the Union in growth, job creation and competitiveness, Cyprus is heavily dependent on imported order to full these objectives. including the completion of the internal oil for its energy supply (95 per cent in In terms of energy eciency, Cyprus market by 2014 so as to allow gas and 2009), lacks interconnections to European is committed to the 20 per cent target set electricity to ow freely across the EU. It or other energy networks and has no under the EU2020 Strategy. However, the also took the important decision that no indigenous energy sources except for a road towards achieving this goal is bumpy, member state should remain isolated from small contribution from renewable sources. to say the least. We currently face obstacles European gas and electricity networks after In 2009 the energy importation cost was in developing renewable energy sources, 2015. €1 billion, representing 19 per cent of the especially in the production of biofuels. Also, The Heads of State armed that the 20 country’s total import cost. This gure the use of solar energy must be explored per cent energy eciency target by 2020 translated to a decit of 4 per cent in the further, before it can become a serious must be delivered and that the EU and its current account balance of 2009, compared alternative energy source. member states will promote investment in with a no oil import scenario. It has therefore A key measure for Cyprus will, renewables, as well as safe and sustainable set energy eciency as a top priority. undoubtedly, be the introduction of natural low carbon technologies. They also Cyprus is currently in the process of gas in power generation. In this respect, the developing renewable energy sources. recent ndings regarding oil and gas reserves recognised the need for better co-ordination within our exclusive economic zone open of EU and member states’ activities with a However, in doing so, it faces a number of up new possibilities and, once extraction of view to ensuring consistency and coherence serious obstacles, mainly in the production natural gas becomes a reality for Cyprus, we in the EU’s external relations with the key of biofuels. This is due to the limited will be able to attain our objectives in this eld. energy producer, transit and consumer availability of suitable agricultural land, In line with the ambitious goals set by countries. water scarcity and high dependence the European Council, we are committed to President Christoas expressed full on imports to satisfy the indicative and proceed with steady steps into the future.‰ support for the objectives of ceasing mandatory targets, which are imported at a very high cost that is much higher than that Ambassador Andreas D. Mavroyiannis energy isolation of all member states by Permanent Representative of Cyprus to the EU 2015 and materialising the appropriate of imported oil.‰

Southern Neighbourhood crisis ‡ Cyprus settlement talks ‡ Turkish Cypriot protests continue ‡Offshore gas extraction expected ‡Cyprus’ economic recovery ‡EU- readmission agreement ‰ ‰ Speaking after his meeting with Mr Furthermore, Furthermore, at a meeting of EU Foreign Greece’s Greece’s support in the eorts to reach A resolution condemning the use underlined that “the proposals of the Greek framework the within always are side Cypriot of the UN Security Council resolutions and are based on the agreed basis for a solution of a bicommunal, bizonal federation political equality...for one state with a with single a single sovereignty, citizenship and a single personality.” international Eroglu on 28 February, President Christo as said that he and the Turkish Cypriot leader had clari ed the that solution of the the federation aim Cyprus and problem as not is SecretaryUN the by echoed were comments a a regards confederation. His General’s Special leaders the that said who Downer, Alexander Adviser had “good a and long about discussion” the on basis Cyprus, of the negotiations, “both leaders specifying agreed that that the talks UN basis”. on the agreed continue would z a solution to rearmed the in Cyprus Christo as and Greek Prime Minister George problem talks was Papandreou between in on President 3 during February a and visit to by Minister Greek Foreign Demetris February. Speaking Droutsas after Cypriot counterpart on Markos talks Kyprianou, Mr 14-15 with Christo as his for praised Droutsas President his conduct of the negotiations and regretted that Mr Eroglu “has not will”. shown the same to to tackle illegal immigration humanitarianconsidering aspects. ows, whilst Ministers in Brussels on Foreign 21 February, Minister Markos Kyprianou the stressed EU that should governments support that the Middle East may and North Africa. He also joined democratic emerge with in his the counterparts Malta, in Slovenia France, and Greece, High Spain in Representative writing and for to Security Foreign Policy stress the Catherine Aairs need to fully utilise the Ashton European to the for Union the and Policy Neighbourhood Mediterranean in the EU’s response during the political transition and ongoing reforms regions. in the aected z of demonstrators in violence Arab countries, especially Libya, was against adopted Cyprus unanimously House by pro-democracy the of February. The Representatives resolution urged on all sides Libya 24 in to enter into dialogue with of the achieving aim full respect for as human laid rights down in international It conventions. declared its support for “the right inalienable of peoples to demonstrate their “violence is not the answer and stressed will” that demonstrations”. to Cyprus Premier Premier On 23 February Interior Minister Neoclis In this context, the Rome meeting At At the same time, Mr Stephanou Crisis in EU’s Southern Neighbourhood Southern EU’s in Crisis The The Cyprus Government, in with co-ordination its EU partners, the unfolding events in North continued Africa and the to follow Middle East, taking action whenever it was deemed necessary. At the forefront of Government’s the eorts was the oer to help foreign nationals eeing from the violence in Egypt. The ordination Cypriot with Greece authorities, and Germany, in also took action co-to ensure that Cypriot nationals the country. leave able to were in Libya Sylikiotis ew to Rome for a meeting his with counterparts from France, Greece, Italy, Malta and Spain to upheavals consider the in political North adopted Africa. The a Ministers declaration ongoing events saying in North that deep Africa and “the represent dramatic social and institutional changes, which cause about the profound possible eects on concern our countries EU”. and on the entire called for tackling the ow of urgent immigrants and asylum measures seekers. The joint communiqué aimed also noted that at democratic, improvement in the neighbouring region social is and crucial. Mr Sylikiotis told economic the meeting EU that members should co-ordinate eorts Strong support... President Christo as greets Greek greets Christo as President support... Strong t President President Demetris Christo as and Turkish Cypriot leader Dervis Eroglu sessions held of UN-sponsored further negotiations on a Cyprus settlement in Nicosia on 9, 17 and 28 February. These followed the meeting tripartite between the two Cypriot and leaders the UN Secretary General Ban Ki-moon in Geneva on 26 January, during which an intensi cation of the surrounding problems However, negotiating agreed. was process the agreed basis for a solution clouded the talks, with the Turkish Cypriot side insisting on what Cyprus Government Stephanos Spokesman Stephanou reasoning”. “two states described as on 2 February George Papandreou on arriving for talks in Athens. in talks for arriving on Papandreou George UN UN parameters for Cyprus rearmed ‰ ‰

Commenting Commenting on the issue, Cyprus Noble’s Noble’s vice president for international The The popular unrest in the Turkish- President President Demetris Christo as on 13

within a year a within expected to start start to expected Gas extraction extraction Gas gather pace gather in occupied area area occupied in Anti-Turkey rallies rallies Anti-Turkey reserves in its EEZ. interest interest in the exploitation of natural gas everything possible to serve Cyprus’ vital assurances assurances that the Government would do Spokesman Stephanos Stephanou gave straddling both zones. straddling indicated indicated a sizeable gas-bearing structure Israeli Israeli EEZ and that the seismic ndings that that Noble had had success in the adjoining do not have an exact estimate”, but he noted noted he but exactan estimate”, have not do Cypriot Cypriot sector, he replied that “we currently about the size of the gas reserves in the excited excited about working in Cyprus”. Asked very excited about the prospects and very operations, operations, Terry Gerhart, said that “we are explain their plans. explain also met President Demetris Christo as to 15 February with Noble executives, who He was speaking after talks in Nicosia on Tourism Tourism Minister Antonis Paschalides. according according to Commerce, Industry and could could begin in late 2011 or early 2012, zone (EEZ) by the US Noble Energy company company the US Noble Energy (EEZ) by zone the blocks in the Cypriot exclusive economic the blocks in exclusive the Cypriot The The extraction of natural gas from one of disapproval. in de ance of the occupation regime’s protest actions were planned for early March March early for planned were actions protest occupied occupied area is set to continue. Further Armenians and Latins. same rights as the Greek Cypriots, Maronites, Maronites, Cypriots, Greek the as rights same citizens citizens of the Republic of Cyprus with the noted noted that the Turkish Cypriots are lawful Cypriot Cypriot community in the occupied area, he about what is happening to the Turkish their common future. Expressing concern and Turkish Cypriots can decide freely on troops troops from Cyprus so that Greek Cypriots of the Turkish Cypriots and to withdraw its February February urged Turkey to listen to the voice reuni cation of the island. of the island. reuni cation settlement settlement of the Cyprus problem and the and international conventions as well as a and labour rights as laid down in European protesters demanded the recognition of civil of recognition the demanded protesters continued continued in February. The Turkish Cypriot measures introduced at the behest of Turkey Turkey the behest of at introduced measures protest protest against austerity and privatisation Turkish-occupied Turkish-occupied area from late January in unions and opposition parties in the The The mass demonstrations staged by trade EU agrees terms of Cyprus’ economy on recovery path readmission pact Finance Minister Charilaos Stavrakis in 2010. As regards prospects for 2011, welcomed the conclusions adopted by the Mr Stavrakis drew attention to the IMF’s with Turkey EU’s Economic and Financial Aairs Council forecast of a return to solid growth of Council of the EU (ECOFIN) on 15 February, by which ECOFIN between 1.5 and 2 per cent. agreed that the Cyprus Government had Less pleasing was an announcement by taken the necessary measures to correct the Moody’s agency on 24 February that it its budget de cit to under 3 per cent in was downgrading Cyprus’ credit rating from 2012, while achieving a satisfactory scal Aa3 to A2. Commenting on the decision, adjustment in 2011. He also welcomed the the Finance Ministry noted that the agency news that Cyprus achieved estimated GDP had stated that there would be no further growth of 0.9 per cent in 2010 following downgrading in the near future. As regards contraction in 2009. Moody’s concern about the large size of the Mr Stavrakis recalled that “at the Cypriot nancial sector and its exposure to beginning of the year there was a sharp the Greek market, the Ministry said that the rise in alarmist scaremongering over the Cypriot banking sector remained robust projected course of the economy in 2010” and drew attention to the recent successful and that “peddlers of economic doomsday capital increase by the two largest banks. scenarios” had even been unimpressed by The Finance Ministry also said that tMr Sylikiotis chats with Commissioner Cecilia Malmstrőm. the Finance Ministry’s own conservative the Government will continue its policies The Justice and Home Aairs Council forecast of 0.5 per cent GDP growth. In the aiming at resolving the structural problems approved on 25 February the Turkey-EU event, as the latest gures showed, there of the economy, including that of the state readmission agreement. The text, though had been a positive economic performance payroll.‰ greatly improved from its rst version, still had some weak points, so that Cyprus’ Interior Minister Neoclis Sylikiotis submitted a unilateral declaration describing all the European Parliament rm on Turkey issues which were still a cause for concern. A call for Turkey to give active support to particular by facilitating its access to military Mr Sylikiotis said that “we now have the ongoing Cyprus settlement negotiations zones and archives. a very important tool which can be used and to facilitate a suitable climate for The resolution deplores the fact that the against illegal immigration originating them by immediately starting to withdraw Additional Protocol to Turkey’s Association from Turkey”. He presented data showing its forces from Cyprus was made in a Agreement with the EU, which is calling inter that over the past three years 11,000 illegal resolution adopted on 10 February by the alia for Turkey to recognize the Republic of immigrants have entered the Government- Foreign Aairs Committee of the European Cyprus, has still not been implemented by controlled area of Cyprus from the Turkish- Parliament by 51 votes to ve with three Turkey - a state of aairs “which continues occupied area. abstentions. The resolution, which was to aect the process of negotiations” for He expressed particular concern welcomed by the Cyprus Government, Turkey’s accession to the EU.‰ regarding Turkey’s intention to implement will go to the March plenary session of the European Union the agreement with Cyprus and underlined European Parliament for nal adoption. that Cyprus counts on the European The resolution strongly urges the two Commission’s reassurances that it will communities in Cyprus “to work intensively monitor closely the comprehensive and as asked for by the UN Secretary General inclusive implementation of the agreement to capitalise on the progress already made and that it will take appropriate action to in the negotiations in order to reach a remedy possible shortcomings. He also sustainable solution, in line with the relevant underlined that the three-year transitional UN Security Council resolutions, and...the period until full implementation was principles on which the EU is founded, to unnecessarily long, with the transition the bene t of the Cypriot citizens, the EU period postponing Turkey’s responsibilities and Turkey”. and obligations for several years, whereas It also calls on Turkey to address the the EU’s obligations were immediate. issue of the illegal settlers in the occupied The Minister nally noted that it should area, as well as encouraging the Turkish be clear that the readmission agreement, Government to intensify its support for the and the joint declaration on co-operation tThe Foreign Aairs Committee in session... Members of the Committee on Missing Persons in Cyprus, in in the area of visa policy with Turkey, do not European Parliament keep a close eye on Turkey. commit the EU in a dialogue aiming towards visa facilitation or liberalisation.‰ Commissioner Georgieva’s visit to Cyprus The need for the EU to strengthen its she had been impressed by its operation Population increase disaster response capacity was underlined based on both professionals and volunteers The Cyprus Statistical Service’s latest by European Commissioner for International and noted that Cyprus can play a regional Demographic Report published on 10 Co-operation, Humanitarian Aid and Crisis crisis response role, as in the Lebanon February estimated the population of the Response Kristalina Georgieva during a visit conict of 2006 and in recent forest res in Government-controlled areas at 803,200 at to Cyprus on 25-26 February, during which Greece and Israel. end-2009, an annual increase of 0.8 per cent, she had meetings with President Demetris Ms Georgieva predicted that Cyprus will representing the lowest rate of growth since Christo as and senior ministers. also play a very important role when it holds 1988. About 70 per cent of the increase of After being escorted by Interior Minister the rotating EU Presidency in the second 6,300 was attributed to natural increase and Neoklis Sylikiotis to the Civil Protection half of 2012 as a result of its emphasis on 30 per cent to net migration.‰ Centre in Larnaca, Ms Georgieva said that solidarity within a European framework.‰ N otes & N ews Cyprus News Agency zPresident Demetris Christo as attended to decide where to undertake further a ceremony at the Cathedral of Our Lady of studies. A total of 67 British universities and Graces in Nicosia on 13 February in honour colleges were represented, reecting the of St Maron, the Founder and Father of the fact that the UK is the second most popular Maronite Christian Church. The Maronite country, after Greece, for Cypriots students Archbishop of Cyprus, Youssef Soueif, going abroad for higher education. reiterated the support of the 5,000-strong zAgriculture, Natural Resources and Maronite community in Cyprus for the Environment Minister Demetris Eliades President’s “endeavours for the reuni cation announced on 11 February that the of Cyprus”, adding that his presence at the European Commission is expected to take a ceremony demonstrated his respect for the nal decision on whether to grant Protected Maronite community and for the “diversity Designation of Origin (PDO) status to tMedia and education... Government Spokesman Stephanou addresses seminar in Nicosia. within unity” which has characterised the Cypriot halloumi cheese by the end of history of Cyprus. 2013. Although relevant documentation was pointing out that media and education have zThe rst kidney transplants at Nicosia published in the Ocial Gazette in February key roles in determining and shaping social General Hospital were carried out on 8-9 2007, the complexities of the procedure for conscience. February on two Cypriot patients. Health registration are considerable. If achieved, zThe completion of the latest excavations Minister Christos Patsalides said that the PDO status will ensure that halloumi cheese by Cypriot archaeologists of the Byzantine aim of establishing a transplant centre originates only from Cyprus. Even without sites of “Katalymmata ton Plakoton” in the General Hospital, to replace the the protection, the value of exports of at Akrotiri ton Gaton and “Panayia tou recently closed Paraskevaides Centre, had Cyprus Commission, High London Kampou Choirokiti” were announced by been achieved. He expressed the hope that the Antiquities Department on 24 February. families would nd the courage to decide in The main building at “Katalymmata ton favour of organ donations “to give life and Plakoton” has been dated to the rst decade hope to other human beings”. of the reign of Emperor Heraclius in the early zCyprus’ trade de cit (excluding invisibles 7th century AD, suggesting that it might such as tourism revenue) rose to €5.3 billion have been built to give refuge to Christians in 2010, from €4.7 billion in 2009, with an eeing from Persian invasion of the eastern increase export value, to €1.2 billion, being Byzantine Empire. Work at “Panayia tou more than oset by increased imports Kampou Choirokiti” identi ed a three-aisled valued at €6.5 billion. Other EU countries early Byzantine church with inscribed side provided 69 per cent of Cyprus’ imports by apses.‰ value in 2010 and took 62 per cent of its exports. zCommunications and Works Minister Erato Kozakou Markoullis con rmed on 3 February tDelicious Cypriot cheese... Halloumi’s PDO status is to be Sporting highlights that the analog television era will come to determined by 2013. marathon. The 5th Limassol an end on 1 July 2011, and that it will be halloumi cheese by Cyprus increased by 18 marathon on 20 February drew over 1,000 replaced by universal digital transmission. per cent in 2009 to €41.2 million. participants from around the world to She added that Cypriots have much to gain zA Cyprus-Germany agreement for the what has become one of the most popular from digital television transmission, notably avoidance of double taxation on income road races in the international calendar. a much wider range of networks making and capital was signed in Nicosia on 18 In addition to the main race over 42.2 km considerably more programmes available to February by Finance Minister Charilaos along the Limassol sea-front, races were viewers. Stavrakis and German Ambassador Gottfried run over half-marathon, 10 km and 5 km zThe 18th International Education Fair, Zeitz. Mr Stavrakis said that the agreement, distances. There was also a 1 km charity held in Nicosia on 25-27 February under which replaced an earlier renegotiated walk and a 1 km kids’ fun run. The winner of the sponsorship of Education and Culture accord dating from 1974, would enhance the marathon race was Momanyi Basweti of Minister Andreas Demetriou, attracted the the already strong economic and Kenya, with Kenyans taking the next three participation of over 150 universities and commercial ties between the two countries. places. Cypriot runner Costas Constantinou colleges from 15 countries, all seeking to He expressed con dence that Cyprus as a came fth. attract Cypriot high-school students trying regional centre would become increasingly Geroskipou cycle race. Over 60 cyclists Cyprus News Agency attractive to German and other foreign from 11 European countries took part in investors, noting that many important the 2nd road race in the coastal town of German shipping companies are already Geroskipou to the east of Pafos on 5-6 operating on the island. February. The overall winner of the men’s zA seminar entitled “Media and elite event was Petros Raptos (Greece), Education” was hosted in Nicosia on 4 whilst Alexey Lutsenko (Kazakhstan) won February by the Ministry of Education and the junior men’s race.‰ Culture and the Cyprus News Agency with the aim of contributing to media eorts to CYPRUS NEWS - BRUSSELS EDITION is produced monthly by the Permanent Representation of Cyprus improve, through education, the citizens’ to the EU. Editor: Maria Phanti. To receive a regular ability to evaluate, select and reproduce copy, by post or email, please contact: The Press information with stringent criteria and Counsellor, Permanent Representation of Cyprus without sensationalism. In a message read to the EU, 61 Avenue Cortenbergh, 1000 Brussels, Belgium, Tel: 02 7395188, Fax: 02 7366573, by Government Spokesman Stephanos GOCKNRTGUUQHſEGDTWUUGNU"OHCIQXE[ Stephanou, President Christo as said that the maximum degree of responsibility and Links Cyprus Government: www.cyprus.gov.cy tAssessing the options... Minister Andreas Demetriou at Ministry of Foreign Affairs: www.mfa.gov.cy the International Education Fair in Cyprus. objectivity must be exercised by the media,