Cyprus Mail: News Articles in English, 03-04-17

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From: The Cyprus Mail at <http://www.cyprus-mail.com/>

Thursday, April 17, 2003

CONTENTS

[01] Champagne and blue balloons mark signing

[02] CyTA slashes cost of so-easy package

[03] Tala water safe, tests show

[04] Denktash spurns Simitis talks invitation, but opposition groups to attend

[05] Next target: the euro

[06] Next target: the euro

[07] Cyprus enters 'training' period as EU observer

[08] What the Treaty says about the Bases

[09] Disappointment in the north as Greek Cypriots celebrate

[10] What the Treaty says about the Turkish Cypriots

[11] Fish farmers target Japanese market with tuna project

[01] Champagne and blue balloons mark signing

Hundreds of people flocked to the grounds of Nicosia's town hall to celebrate the rather low-key event and to watch the signing ceremony broadcast live from Athens on a giant television screen above Eleftheria Square.

As simultaneous celebrations were taking place in all major towns on the island, dignitaries, government officials and diplomats, along with hundreds of citizens and a handful of tourists, gathered in Nicosia to hear an address by Nicosia Mayor Michalakis Zampelas and other officials.

Tourist Hans Beminge from Sweden said he had travelled up from Larnaca especially for the event, as did French visitors Céline Lemoine and Johann Savoia. “It's one of the biggest chances a country can have,” said Beminge. “It's a club of democracies.”

“We learned that today was the day for Cyprus and decided to come to Nicosia to see the event,” said Savoia. “The melting pot of different cultures is a positive thing for the European Union.”

A group of primary school children wanted to send a message to their European counterparts. “We want to say Happy Easter and to say that we are now all part of the same big family,” said one. They said they were looking forward later in the evening to a planned fireworks display. Fireworks were planned in all towns later after 8pm.

The vast majority of Greek Cypriots favour EU entry, mainly because they believe it will bring security to the divided island.

In a message to Turkish Cypriots across the capital's Green Line, Zampelas said Greek Cypriots hoped for a peaceful future and the reunification of the island. “They (Turkish Cypriots) are on the other side probably listening to us right now,” he said. “The EU builds bridges and we want to see all Greek Cypriots, Turkish Cypriots, Roman Catholics, Maronites and Armenians in Cyprus all together in a future where they can all enjoy the rights of the European Union.”

UN-led talks to reunify Cyprus broke down in The Hague last month when Turkish Cypriot leader Rauf Denktash refused to put the UN plan to a referendum. The plan aimed at seeing a united Cyprus sign the Treaty in Athens.

“Unfortunately we are not signing the accession treaty for a united Cyprus, ” said Adriaan van der Meer, head of the EU delegation to Cyprus “However, I would like to indicate to our Turkish Cypriot friends that the door remains open and that a provision has been made for this in the Treaty.”

Van der Meer paid tribute to the Cyprus government, parliament and public service for its speedy work in completing the harmonisation procedure. “Cyprus will now become a decision maker instead of a decision taker,” he said. “The accession of Cyprus will add a new focus to the work of the EU. Together with Cypriots, we will have to work to defend our common values and goals in the Mediterranean. This southward enlargement will indeed bring a new geographic dimension to the Union, providing access to the Eastern Mediterranean, to the Middle East. Cyprus's role is crucial”, he added.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[02] CyTA slashes cost of so-easy package

THE COST of CyTA's so-easy phone cards will drop by 47 per cent from tomorrow.

The so-easy package, a one-off pay-as-you-go method of mobile phone charging currently costs £29, which includes a new phone number and £5 call credit. From tomorrow, the package will cost only £15.

Once the package is installed in a mobile phone, the user than merely buys a new charge card when his credit has run out. These are available from kiosks in denominations of £3, £5, £10 and £20.

So-easy calls cost slightly more than subscriber mobile calls but users do not face a monthly CyTA subscription once the initial package is paid for. By using the card foreigners can also avoid having to pay the huge deposits that CyTA requires for them to subscribe to a permanent line.

According to CyTA, 160,000 people on the island use the so-easy package for their mobile needs. This represents 36.6 per cent of all mobile users in Cyprus, totalling 437,000.

CyTA has since last year begun to drop both fixed-line and mobile charges as a move towards facing the competition resulting from the liberalisation of the telecommunications sector.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[03] Tala water safe, tests show

In the past few days, residents of Tala had complained about the smell of diesel in their water.

Part of the Tala community is supplied water from private boreholes belonging to Ayios Neophytos monastery.

The monastery and the mayor of Tala, Daniel Papadopoulos, initially thought the water supply had been maliciously contaminated with diesel.

But yesterday, and after the water had been tested by the state lab, Papadopoulos told the Cyprus Mail that the water was clean and safe for consumption.

“As it transpired from the tests carried out by the state lab, there are no toxics in the water, including diesel or anything else,” he said.

He conceded there was a diesel-like smell coming from the water, adding that it could have been coming from the residue at the bottom of the tanks, which were almost empty due to increased consumption.

Papadopoulos said the tanks had since been washed and chlorinated and the water supply had been resumed.

Water supply to the area had been interrupted for at least four days.

Papadopoulos said the many problems - cuts, reduced supply -- would be solved when the area was linked with the state water network.

Work was currently under way to link the area with the water refinery in Asprokremmos, the mayor said.

“I believe the project will be ready by the end of the year,” Papadopoulos said.

He said the main pipes had been already laid, water tanks were in place and pumps were being installed.

“Part of the community is already linked to the system but the whole area will take until the end of the year,” he said.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[04] Denktash spurns Simitis talks invitation, but opposition groups to attend

Simitis arrives in Cyprus on Friday for a two-day visit.

Denktash, who brought down the Cyprus talks in The Hague last month, said in Turkey yesterday that he would not attend the Saturday meeting, but added Turkish Cypriot opposition parties would take part.

“The invitation has been extended to the leaders of all political parties... only opposition groups are attending,” Denktash told reporters in the Turkish city of Bursa.

The meeting will take place at the Greek ambassador's residence next to the Ledra Palace in Nicosia, Turkish Cypriot sources told Reuters. The Greek government had extended letters of invitation to Turkish Cypriot leaders via the Slovak embassy.

“The purpose of this meeting is to provide the opportunity for an open discussion about the common future of the two sides on the island, within the enlarging European family of countries,” read the invitation.

“We do not run away from negotiations,” Mehmet Ali Talat, leader of the opposition Republican Turkish Party (CTP), said yesterday.

“As representatives of the Turkish Cypriot people we have every right to attend this sort of meeting. Denktash has alienated himself from his people, he no longer represents the people,” Talat said.

Denktash on Tuesday blasted a UN resolution on Cyprus formulated after the collapse of the talks, which singles him out as the culprit. The Turkish Cypriot leader is also unhappy that Cyprus was signing the EU accession treaty yesterday. He has been opposing the accession of Cyprus for years on the ground that the Greek Cypriots should not be allowed to act as the government of the whole island.

Currently on a visit to Turkey, Denktash has said that he is willing to restart reunification talks but not on the basis of the UN plan. The Security Council resolution passed on Monday said the UN plan should form the basis for any future negotiations.

“The talks can start,” the Anatolia news agency quoted Denktash as saying before attending a conference in Turkey. But the Annan Plan is unacceptable “unless important changes are made on it,” he said.

Turkish Prime Minister Recep Tayyip Erdogan on Monday also welcomed the council's recommendation that negotiations be relaunched.

“It is a positive development that (the council) called on the continuation of negotiations,” Anatolia quoted Erdogan as saying.

By admitting Cyprus before reunification “the EU has invited trouble,” Denktash said. “I hope the EU does not take on Cyprus as a problem, but as an issue that should be solved justly,” Anatolia quoted him as saying.

Government Spokesman Kypros Chrysostomides yesterday expressed the hope that the accession of Cyprus to the EU would contribute to a viable and lasting political settlement.

“We hope that EU accession will offer all the people of Cyprus the feeling of security and that it will safeguard human rights,” he said.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[05] Next target: the euro

With Cyprus' accession to the EU coming into force on May 1, 2004, the next concrete step to cement European enlargement is the adoption of the common currency, the euro.

All acceding states must spend two years as member states in the Exchange Rate Mechanism (ERM) before considering adoption of the euro, pushing the earliest possible entry date back to 2006. But how prepared is the Cyprus pound to be replaced by its larger European sister?

According to one source at the Central Bank, there is no hint of any delay in the adoption of the common currency by 2006.

Post-accession, all countries are obligated to participate in the ERM, but Cyprus has linked its currency to the ERM since 1992, allowing it a margin of 15 per cent on either side of the central parity.

The island's small market has been gearing itself towards adoption of the euro since the notion of accession came to the foreground. Some market players would have liked to see an earlier entry but that would only have been possible if a solution to the Cyprus problem had materialised.

The country will therefore continue its drive towards fulfilment of the convergence criteria set out in the 1992 Maastricht Treaty in order to join the monetary union within two years of accession.

“We are not doing badly at the moment. Inflation is around two to two and a half per cent. It is rising slightly due to the increase in VAT, but that's not a major concern,” said the source.

Although each new member state is obliged to adopt the euro, making the UK, Denmark and Sweden the only countries in the Union holding an opt-out clause, the EU has warned that joining the common currency should not be rushed. New member states are expected to converge nominally with the euro but also in real terms. “To join, you need real not just nominal adoption of the currency, in terms of Gross Domestic Product (GDP) and the standard of living. Cyprus is in good shape on these terms. We have already reached 80 per cent of the EU per capita income average. This goes beyond some existing member states like Portugal and Greece,” said the source, adding, “Our GDP growth rate is expanding faster than the EU average”.

However, the official warned that Cyprus had to keep the momentum going, remain vigilant and continue to maintain fiscal restraint. Regarding the country's fiscal deficit, the initial date for its elimination had been set for 2005 but the knock-on effects of the Iraq war have made that date much less feasible.

The Maastricht convergence criteria for adoption of the euro cover stability in long-term interest rates, the inflation rate, fiscal deficit (must be below three per cent of GDP) and government debt (no greater than 60 per cent of GDP). According to the Central Bank official, the 2006 date for adoption remains feasible.

Practical preparations for adoption are currently in the pipeline. The EU has sent each new member state a check-list of things to do including setting up a National Central Office for protection of the euro and criminalising the making or handling of counterfeit euros.

Another source told the Cyprus Mail that planning implementation of the currency change would be premature at this stage, and the efforts would be lost.

However, Cyprus has the experience of existing member states to draw upon when planning how to raise public awareness, and avoid technical problems and market discrepancies like rounding up of prices, leading to profiteering.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[06] Next target: the euro

With Cyprus' accession to the EU coming into force on May 1, 2004, the next concrete step to cement European enlargement is the adoption of the common currency, the euro.

All acceding states must spend two years as member states in the Exchange Rate Mechanism (ERM) before considering adoption of the euro, pushing the earliest possible entry date back to 2006. But how prepared is the Cyprus pound to be replaced by its larger European sister?

According to one source at the Central Bank, there is no hint of any delay in the adoption of the common currency by 2006.

Post-accession, all countries are obligated to participate in the ERM, but Cyprus has linked its currency to the ERM since 1992, allowing it a margin of 15 per cent on either side of the central parity.

The island's small market has been gearing itself towards adoption of the euro since the notion of accession came to the foreground. Some market players would have liked to see an earlier entry but that would only have been possible if a solution to the Cyprus problem had materialised.

The country will therefore continue its drive towards fulfilment of the convergence criteria set out in the 1992 Maastricht Treaty in order to join the monetary union within two years of accession.

“We are not doing badly at the moment. Inflation is around two to two and a half per cent. It is rising slightly due to the increase in VAT, but that's not a major concern,” said the source.

Although each new member state is obliged to adopt the euro, making the UK, Denmark and Sweden the only countries in the Union holding an opt-out clause, the EU has warned that joining the common currency should not be rushed. New member states are expected to converge nominally with the euro but also in real terms. “To join, you need real not just nominal adoption of the currency, in terms of Gross Domestic Product (GDP) and the standard of living. Cyprus is in good shape on these terms. We have already reached 80 per cent of the EU per capita income average. This goes beyond some existing member states like Portugal and Greece,” said the source, adding, “Our GDP growth rate is expanding faster than the EU average”.

However, the official warned that Cyprus had to keep the momentum going, remain vigilant and continue to maintain fiscal restraint. Regarding the country's fiscal deficit, the initial date for its elimination had been set for 2005 but the knock-on effects of the Iraq war have made that date much less feasible.

The Maastricht convergence criteria for adoption of the euro cover stability in long-term interest rates, the inflation rate, fiscal deficit (must be below three per cent of GDP) and government debt (no greater than 60 per cent of GDP). According to the Central Bank official, the 2006 date for adoption remains feasible.

Practical preparations for adoption are currently in the pipeline. The EU has sent each new member state a check-list of things to do including setting up a National Central Office for protection of the euro and criminalising the making or handling of counterfeit euros.

Another source told the Cyprus Mail that planning implementation of the currency change would be premature at this stage, and the efforts would be lost.

However, Cyprus has the experience of existing member states to draw upon when planning how to raise public awareness, and avoid technical problems and market discrepancies like rounding up of prices, leading to profiteering.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[07] Cyprus enters 'training' period as EU observer

Observer status will allow Cyprus and nine other new member states to participate in meetings of the European Commission, the European Council and the European Parliament, but will not enable them to vote.

Speaking to the Cyprus Mail yesterday, an official at the European Delegation in Nicosia said the observer status taken on by new member states was essential for ensuring EU enlargement was undertaken as smoothly and efficiently as possible.

“This period is useful for the existing member states and for preparing the candidate countries to be ready for 2004.”

The source stressed that the year-long observer status would assist representatives from the new Acceding Countries by accustoming them to the workings of the EU.

“Training is needed to get used to procedures, to get used to situations like sitting round a table with 25 people, all waiting 50 minutes to speak for a couple of minutes.

“In order to be fully operational and efficient as formal members by May a year's training is absolutely necessary.”

The source reiterated that Cyprus' vote would not be taken into account formally in issues decided by the 15 existing member states, but suggested that even without voting, the voices of the new member states were not likely to be drowned out completely.

“They will not take part in the vote and their vote will not be taken into account formally. But obviously they can voice their concerns and this will have some weight in a decision.

“If all acceding countries voice concerns about a particular policy then existing member states will take this into account and might even change their opinion.”

The source added that the adoption of a policy unpopular with observer states was unlikely to occur as it would very likely be overturned once the new member states were able to vote.

“If you start a policy and most of the acceding countries are against it -- for example, in terms of financial matters, regional or agricultural policies which will have a big impact on these acceding states -- it's clear that existing members can't go against their will because as soon as they are members they will reverse this policy. So instead of losing money and time, the opinions of the acceding countries will be taken into account.”

Observer status was adopted by new member states for a year before the previous phase of EU enlargement in 1995, when Austria, Finland and Sweden joined the Union.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[08] What the Treaty says about the Bases

THE ACCESSION Treaty, which the Republic of Cyprus signed yesterday, will not apply to the British Sovereign Base Areas (SBA) in Cyprus, except to the extent necessary to ensure the implementation of agreed arrangements.

The arrangements concern the conditions of accession of the Republic of Cyprus and another nine countries, which signed the Accession Treaty with the EU.

They are set out in the Protocol on the SBA in Cyprus, annexed to the Act concerning the conditions of accession of the 10 new members of the EU.

The Protocol on the British Bases stipulates that the arrangements shall have the sole purpose of regulating the particular situation of the SBA and shall not apply to any other territory of the Community, nor serve as a precedent, in whole or in part, for any other special arrangements which either already exist or which might be set up in another European territory provided for in Article 299 of the Treaty.

According to the Protocol, persons resident or employed in the territory of the SBA who are subject to the social security legislation of the Republic of Cyprus shall be treated as if they were resident or employed in the territory of the Republic.

The Protocol notes that the Republic would not be required to carry out checks on people crossing its land and sea boundaries with the SBA and any Community restrictions on the crossing of external borders shall not apply in relation to such persons, while the United Kingdom shall exercise controls on persons crossing the external borders of the SBA.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[09] Disappointment in the north as Greek Cypriots celebrate

“Every newspaper in the north wrote about Cyprus signing the EU accession treaty today,” Ruzen, a Turkish Cypriot who did not want to be further named and who lives in occupied Nicosia, told the Cyprus Mail yesterday. “We are all very unhappy because on our side nothing has changed.

“I think if our politicians had said yes we could now be part of Europe,” she added.

Another Turkish Cypriot who did not want to be named, also from occupied Nicosia, said some Turkish Cypriots were angry with Greek Cyprus.

“We are surely disappointed that we missed the train today, and angry with the responsible politicians, but now that the Greek Cypriots have got what they really want, we don't think the Cyprus problem will be negotiable anymore, and anger is rising towards the other side.”

Turkish Cypriot Journalists who were in Athens yesterday to cover the ceremony voiced some of the same sentiments coming out of Nicosia.

Hasan Kahvecioglou of Turkish Cypriot daily Ortam said that Turkish Cypriots generally supported reunification, and blamed the leadership for its failure to materialize.

“Unfortunately, the status quo in Turkey and especially Mr Rauf Denktash are not acting in a parallel way with the community.

“They have always been against EU membership so that is why there is a great struggle there (in Turkish occupied Cyprus), there are great demonstrations there, and now I think Turkish Cypriots have lost their hope.”

But Ruzen said that Turkish Cypriots were proud of what they had accomplished with their pro-unification movement, and that there still remained a glimmer of hope.

“We are happy about our demonstrations, and feel that if we hadn't done them, things would be worse now. Now at least the world knows we want change, and Annan's plan is still on the table. If we didn't demonstrate I think the doors would have closed on us.”

She added that the coming elections could be a new chance for change, and felt confident that Denktash would not be re-elected.

Back in Athens, Kahvecioglou added it was a bad move by Turkish Foreign Minister Abdullah Gul not to attend the Accession Treaty ceremony because Turkey does not recognise the Republic of Cyprus, saying that it was “meaningless and a catastrophe for Turkey.”

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[10] What the Treaty says about the Turkish Cypriots

THE PROTOCOL on Cyprus attached to the Treaty of Accession, which was signed in Athens yesterday, provides for the suspension of the application of the acquis communautaire in the Turkish occupied areas.

The Protocol said that in the event of a political settlement of the Cyprus problem, the European Council, acting unanimously on the basis of a proposal from the Commission, shall decide on the adaptations to the terms concerning the accession of Cyprus to the European Union with regard to the Turkish Cypriot community.

It is also noted that nothing in the Protocol shall preclude measures with a view to promoting the economic development of the Turkish occupied areas and that such measures shall not affect the application of the acquis under the conditions set out in the Accession Treaty in any other part of the island.

The EU is ready to accommodate the terms of a settlement in line with the principles on which the EU has been founded and expresses the Union's desire that the accession of Cyprus should benefit all Cypriot citizens, the protocol said.

The contracting parties reaffirm in the protocol their commitment to a comprehensive settlement of the Cyprus problem, consistent with relevant UN Security Council resolutions and their strong support for the efforts of the UN Secretary-general to that end.

Copyright Cyprus Mail 2003

Thursday, April 17, 2003

[11] Fish farmers target Japanese market with tuna project

Fisheries department head Gabriel Gavrielides said yesterday that studies had to be carried to establish that there would be no negative environmental impacts from such an enterprise.

The highly profitable and competitive business has already taken off in Malta, Croatia, Spain and France, he said. Now, French and Spanish fish farmers have contacted Cypriot fish farmers to co-operate and raise tuna with them, said Gavrielides.

At present, there are eight fish farms in Cyprus, which are only licensed to breed seabream (tsipoura) and seabass (lavraki), he said. Six are located between Zygi and Limassol, one is in Paphos and another near Liopetri, in the Famagusta district.

Because tuna are big fish - growing to an average length of one metre and weighing an average of 200 kilos - existing fish farms would need large, additional cages to breed them and ensure they were fattened up for several months before they were fished out. They would also have to be kept separate from the tsipoura and lavraki cages because the tuna would eat the smaller fish, he said.

If tuna were farmed in Cyprus, it would most primarily be exported to Japan, he added. On a per person basis, the Japanese are the world's biggest fish eaters and are well known for paying the most money for tuna, said Gavrielides.

The Tokyo fish market is the largest in the world and the tuna fish auction is one of the most important events of the day. The best of the batch is then served as sashimi in some of Japan's finest restaurants.

“The Japanese do not have fixed prices for Tuna. Instead it is auctioned. If it of good quality, fish farmers could even make $100 a kilo,” said Gavrielides. In short, this would bring a lot of money to the island.

Although the government encourages this kind of enterprise, the fisheries department first has to examine environmental impact studies.

“They need permission first. The existing fish farms will have to carry out environmental impact studies, which will take a few months, before we approve the plans. Then we have to see if we have the room for the cages and to see where they can be placed.”

Fish farms presently breed an average 2,000 tonnes of fish per year, covering both local and export needs, said Gavrielides, adding the department had a target of 10,000 tonnes some day.

Meanwhile, the Cabinet has approved a further four fish farm licences, which the fisheries department would publish as soon as they streamlined the existing criteria, Gavrielides said.

Copyright Cyprus Mail 2003

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