10th anniversary FES CYPRUS NEWSLETTER EDITOR‘S NOTE The Friedrich-Ebert-Stiftung in Cyprus cele- brates its 10th anniversary. To mark the oc- casion the FES newsletter has a new design and we hope you share our excitement over the new look. We hope that the pandemic will allow for an appropriate celebration later this year. In the meantime, we wish you good health and hope you enjoy our “new” newsletter. Newsletter No. 108 MAY 21 please Follow and visit us on: Twitter I Facebook I Instagram I Online 10th anniversary FES CYPRUS NEWSLETTER CONTENT EVENTS, PODCASTS, PUBLICATIONS 3 CYPRUS PROBLEM 4 HYDROCARBONS 5 GREEK CYPRIOTS 5 Economic Developments Domestic Developments Labour Relations and Trade Unions TURKISH CYPRIOTS 9 Economic Developments Relations with Turkey Domestic Developments Labour Relations and Trade Unions Newsletter No.108 MAY 21 please Follow and visit us on: Twitter I Facebook I Instagram I Online 2 10th anniversary FES CYPRUS NEWSLETTER PODCASTS in JUNE: PODCASTS in JULY: Holly McCamant and Hrishabh Sandilya (Project No podcasts in July Phoenix) joined by Zivka Deleva (Director of an Asylum and Reception Centre in Berlin), Elizabeth Kassinis (Caritas) and Qais Hatefi (Afghani refugee and university student in Germany) Migration 2.0 Podcast - Episode 4: Refugee and Migrant Integration in Cyprus and Germany - Com- parisons and Lessons (In English) PUBLICATIONS in JUNE: PUBLICATIONS in JULY: Kyriaki Chatzipanagiotou, Samuel Akoni, Hrishabh No publications in July Sandilya and Sarah Morsheimer A Systemic Analysis of the Impact of the COVID-19 Pandemic on Refugees, Migrants, and Asylum See- kers in Cyprus: Part II – The Survey (In English) Hubert Faustmann, Gianna Chatzigeorgiou, Sertac Sonan Trade Union Monitor Cyprus 2021 (In English, German) EVENTS in JUNE: EVENTS in JULY: No events planned No events planned so far Newsletter No.108 MAY 21 please Follow and visit us on: Twitter I Facebook I Instagram I Online 3 10th anniversary FES CYPRUS NEWSLETTER CYPRUS PROBLEM Home for Cooperation (H4C), which is located in In May, Greek and Turkish Cypriot leaders, Nicos the UN-controlled buffer zone in Nicosia, marked its Anastasiades and Ersin Tatar, shared letters with the 10th anniversary on May 6. In a written statement, UN Secretary-General (“UNSG”), Antonio Guterres, the H4C said: ‘A decade was filled with innumerable briefing him on developments of the Cyprus prob- friendships and memories… dedicated to challeng- lem and their approaches. The letters followed the ing all physical and mental barriers between the two sides’ failure to reach common ground and re- communities of Cyprus supporting a vast number of start negotiations in the informal five-party summit, artists, academics, students, NGOs and initiatives.’ held in Geneva at the end of April. Established in 2011 as an educational and research In his letter to Guterres, Anastasiades stressed centre by the Association for Historical Dialogue that Turkey’s positions are unacceptable and do not and Research (AHDR), the H4C was transformed contribute to creating a common ground for the re- into an intercommunal community centre, with its sumption of the Cyprus talks. He reiterated his po- multicommunal team. The mission statement ‘Home litical will and determination to participate in a new is a hub,’ emphasizes that the H4C welcomes all com- informal conference that will be compatible with munities of the island. the UN decisions and resolutions and the terms of On May 19, the European Parliament’s (EP) 2019- the Good Offices mandate of the UNSG. In addition 2020 Report on Turkey was adopted by the plena- to Guterres, Anastasiades sent his letter to the UN ry. The report called for the formal suspension of Security Council`s permanent and non-permanent accession negotiations with Turkey, which prompt- members, EU institutions as well as EU heads of ed a strong reaction by Ankara, rejecting it as “a bi- state. A separate letter was also sent to US Presi- ased text with false allegations”. The EP expressed dent, Joe Biden, who thanked him for his warm ap- serious concern that in recent years, despite being proach on the Cyprus problem. a candidate country, Turkey’s government has pur- Tatar sent his letter to Guterres laying out the Turk- sued a continuous and growing distancing from EU ish Cypriot’s position to the Cyprus issue and how he values and standards. The EP also referred to Tur- sees the way forward, which involved a ‘bottom-up’ key’s unilateral actions in the eastern Mediterrane- concept with two sovereign states existing side by an and expressed concerns as regards a confronta- side. Tatar said he would publicize the letter, which tional and hostile foreign policy, towards the EU and he also sent to certain heads of EU states. its member states, especially Greece and Cyprus. According to Turkish Cypriot newspaper, Kibris On May 25, Anastasiades held a meeting with EU Postasi, the next informal meeting on the Cyprus High Representative for Foreign Affairs and Securi- problem is expected to take place in September or ty Policy, Josep Borrell, on the sidelines of his visit to October 2021. The newspaper reported that the Brussels where he was attending a special meeting Greek Cypriot side was aiming for the meeting to of the European Council. The President stated that take place before July 20, which will reportedly be Cyprus’ positive stance at the upcoming European difficult to arrange, as preparations will not be com- Council (EUCO) in June that will discuss EU-Turkey pleted by that time. The UNSG’s special represent- relations will depend on various factors including ative, Jane Holl Lute, is expected to return to the Ankara’s behaviour on the Cyprus issue and Varos- island for consultations with the Greek and Turkish ha; refraining from provocative actions at sea and on Cypriot leaders in June. Lute visited Greece and Tur- land; and whether Ankara will fulfil its contractual key in the last week of May. obligations to the EU and all its member states. Assessing the Greek Cypriot parliamentary election Newsletter No.108 MAY 21 please Follow and visit us on: Twitter I Facebook I Instagram I Online 4 10th anniversary FES CYPRUS NEWSLETTER results, Tatar stated that the rise of far-right, ELAM public. The reopening of the crossing points was de- justifies the Turkish side’s position for a two-state layed as they were expected to reopen on May 31, solution. Tatar argued that nationalist extremism as announced by TRNC1 prime minister Ersan Saner. was on the rise in the south, while left wing AKEL, which supports a federal solution, has retreated. The Cyprus issue and the outcome of the informal HYDROCARBONS Geneva meeting were part of the agenda during a There were no significant developments in May. meeting between Turkish Foreign Minister, Mevlut Cavusoglu and his Greek counterpart, Nikos Dendi- as, in Athens on May 31. GREEK CYPRIOTS On May 24, the Turkish Cypriot shopkeepers who run businesses around the Ledra Street/Lokma- Economic Developments ci crossing point marched to the check point and On May 11, Moody’s Investors Service warned that called the leaders of the two communities to open the loans on the books of EU banks that remain un- the crossing points immediately. The protest was der long-running moratoria are more likely to under- organised by the Turkish Cypriot Chamber of Shop- perform, with credit quality particularly uncertain in keepers and Artisans (KTEZO). Elsewhere, speaking Cyprus, Italy, Portugal and Hungary. The Moody’s to the Turkish Cypriot daily Yeniduzen, the KTEZO report comes on the back of similar warnings from president Mahmut Kanber said that unemployment the Central Bank of Cyprus, whose governor last was on the rise and the number of businesses that month spoke of an impending increase in non-per- shut down has been growing by the day. Kanber add- forming loans. The moratoria apply to primary resi- ed: ‘Until the pandemic, the two communities creat- dences of up to €350k and small business property ed an island economy … Most of the hot money cir- for businesses with turnover up to €2bn. culating in the north came from the south. We have On May 12, the main findings of the European Com- always advocated the opening of more crossings and mission’s spring economic forecast for Cyprus were more trade, and we still do … People in the south presented in Brussels. According to the report, the are better off … the value of their currency is also tourism sector has been severely affected, while the much higher than ours. The crossing points need to impact on domestic demand and the labour market be opened immediately so that they will be able to has been cushioned by temporary income support benefit from cheaper prices, and we from higher de- measures. Gradual recovery in economic activi- mand’. ty is forecast for 2021 and 2022, driven mainly by For the first time since February 2020, crossing domestic demand. Public finances worsened signif- points are expected to reopen on June 4 under the icantly in 2020, due to the crisis but are set to im- following conditions: Level 1 (green) no restrictions, prove in 2021 and 2022. According to the European level 2 (orange) seven day negative rapid or PCR test Commission, the Cypriot economy shrank by 5.1% and, finally, level 3 (dark red) closed to the general in 2020. It is forecast to grow by 3.1% and 3.8% in 1The Turkish Republic of Northern Cyprus (TRNC) is only recognised as the government of the whole of the island, recognised by the Republic of Turkey. While for Turkey the entire island is now considered to be a member of the and the Turkish Cypriots, Ersin Tatar serves as President European Union.