CYPRUS: BRIDGING THE PROPERTY DIVIDE Europe Report N°210 – 9 December 2010 TABLE OF CONTENTS EXECUTIVE SUMMARY AND RECOMMENDATIONS ................................................. i I. INTRODUCTION ............................................................................................................. 1 II. PROPERTY AND THE CYPRUS CONFLICT ............................................................. 2 A. TURKISH CYPRIOT MANAGEMENT OF GREEK CYPRIOT PROPERTY ............................................... 2 B. GREEK CYPRIOT MANAGEMENT OF TURKISH CYPRIOT PROPERTY ............................................... 3 C. THE UN AND THE PROPERTY ISSUE.............................................................................................. 5 1. From the “draft framework” to the “set of ideas” ........................................................................ 5 2. The Annan Plan ............................................................................................................................ 6 D. WHAT CYPRIOTS WANT .............................................................................................................. 7 III. THE COURTS HAVE THEIR SAY ............................................................................... 8 A. TURKEY IS FOUND LIABLE ........................................................................................................... 8 B. EU SEES GREEK CYPRIOT LEGAL WRIT EXTENDING TO ALL CYPRUS ........................................ 10 C. CYPRIOTS WIN SOME RIGHTS TO SETTLE INDIVIDUALLY ........................................................... 10 D. PASSAGE OF TIME WEAKENS THE RIGHTS OF THE DISPLACED ................................................... 11 IV. PROPERTY IN THE 2008-2010 CYPRUS PEACE TALKS ..................................... 12 A. MORE QUESTIONS THAN ANSWERS ............................................................................................ 12 B. THE CURRENT CYPRUS-LED TALKS ........................................................................................... 13 1. The Christofias-Talat period: A missed opportunity ................................................................. 13 2. The Christofias-Eroğlu period: No end in sight ......................................................................... 14 C. TURKISH CYPRIOT PROPOSALS ON PROPERTY ............................................................................ 14 D. GREEK CYPRIOT PROPOSALS ON PROPERTY ............................................................................... 16 V. IDEAS FOR PROGRESS ............................................................................................... 18 A. STRENGTHENING LOCAL REMEDIES ........................................................................................... 18 B. FACILITATING PROPERTY EXCHANGES AND OTHER PRIVATE ARRANGEMENTS .......................... 19 C. VAROSHA .................................................................................................................................. 19 D. BRIDGING THE NEW PROPOSALS ................................................................................................ 20 VI. CONCLUSION ................................................................................................................ 22 APPENDICES A. MAP OF CYPRUS .............................................................................................................................. 23 B. INTERNATIONAL LAW RIGHTS TO PROPERTY, RETURN AND REMEDY .............................................. 24 C. ABOUT THE INTERNATIONAL CRISIS GROUP .................................................................................... 25 D. CRISIS GROUP REPORTS AND BRIEFINGS ON EUROPE SINCE 2007 .................................................... 26 E. CRISIS GROUP BOARD OF TRUSTEES ................................................................................................ 27 Europe Report N°210 9 December 2010 CYPRUS: BRIDGING THE PROPERTY DIVIDE EXECUTIVE SUMMARY AND RECOMMENDATIONS The property issue is one of the most intractable knots in that Cyprus should become a bizonal, bicommunal fed- the settlement of the Cyprus dispute, without which sta- eration, the two communities have diametrically opposed bility in the Eastern Mediterranean remains fragile. Greek ideas about how bizonality should affect the right to re- and Turkish Cypriots own tens of thousands of buildings turn. Greek Cypriots stress displaced persons’ right to re- and parcels of land on both sides of the divided island. A turn and enjoy property as enshrined in international law. convincing plan to resolve conflicting claims would give Turkish Cypriots emphasise that they should remain the great support to reunification efforts and persuade exter- majority in their zone and that this will impact how many nal partners of Cypriots’ will to find a compromise, even Greek Cypriots can regain their property. In fact, fewer as the 2011 electoral calendar sets what is in effect a than one quarter of Greek or Turkish Cypriots say that deadline for the present negotiations. But as Cypriot poli- they will definitely or probably return to their old homes ticians and Turkey fail to come to terms, the property if these fall under the other constituent state. question is increasingly being atomised by individual actions and the courts – a process that will be more ex- In the absence of a political settlement, more Cypriots are pensive, slow and inefficient for all than a comprehensive turning to costly and slow judicial solutions. International property settlement. With a comprehensive deal proving courts have found Turkey liable for blocking Greek Cyp- elusive, heavy court and administrative penalties and the riot access to their properties in the north and imposed actions of Cypriot individuals mean that the property substantial financial penalties. But the courts are recog- issue can no longer be ignored or avoided. New ideas are nising that long-term users also have rights and that indi- urgently needed. vidual owners should be able to voluntarily exchange properties. The European Court of Human Rights (ECHR) The passage of time since the events that led to mass dis- especially has been encouraging Cypriots to rely on domes- placements – 47 years in some cases – means many prop- tic remedies, such as a Turkish Cypriot property commis- erties have been assigned to new users by local authori- sion to which several hundred displaced Greek Cypriots ties, sold, destroyed or significantly developed. The two have already applied. communities have grown apart and established new socio- economic structures in their respective areas, having lived In the round of reunification talks underway since Sep- behind closed front lines for three decades and interacted tember 2008, the two leaders have agreed in principle to only superficially since crossing points opened in 2003. settle the property dispute through a mix of restitution, They have adopted opposing approaches to property, exchange and compensation. Any compromise should Greek Cypriots emphasising return and Turkish Cypriots balance the rights of displaced Greek Cypriots with those resettlement, and a body of local legislation reflects this of the displaced Turkish Cypriots, as well as take into divergence. There are also disagreements about the amount account the accommodation needs of a mutually agreed and value of property each community owns on both sides number of Turkish settlers. This migration to Cyprus con- of the island. travened the spirit of the Fourth Geneva Convention, but the immigrants’ children may now have been born and Attempts to find a negotiated settlement have tried to lived their whole lives on the island. tackle property, which has implications for the individual and collective human rights of the island’s 210,000 dis- The failures of the past three decades prove that neither placed persons and their heirs, at least one fifth of the side is likely to achieve its ideal settlement, and flexibility population, the majority of whom are Greek Cypriots. UN is needed. Turkish Cypriots should recognise that while Secretary-General Kofi Annan’s efforts in 2002-2004 they want to retain a majority in their constituent state, were the most comprehensive. But these failed, together two thirds to three quarters of property in their area was with the broader talks, and left more questions open than owned by Greek Cypriots in 1974, when the present divi- they provided answers. While there is general agreement sion of the island took place. They must understand that Cyprus: Bridging the Property Divide Crisis Group Europe Report N°210, 9 December 2010 Page ii the right to restitution holds great importance in Greek d) alternative accommodation should be provided for Cypriot discourse. Turkish and Turkish Cypriot leaders those who have to vacate current housing and have must remind their populations that the division of the no other home. island has no legal basis. To the Greek Cypriot leadership: Politicians in Ankara, especially, should relaunch and sustain their outreach to Greek Cypriots to assure them of 5. Make legal provision for property exchanges between Turkey’s commitment to seeing through a settlement and displaced owners from both sides that have been ap- return of property. For Ankara in particular, indefinite proved by the Turkish Cypriot Immovable Property occupation would invite higher costs, both in court judge- Commission (IPC). ments and in its efforts to join the European