Cyprus PIO: News Update in English, 02-10-11

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From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>

Friday, 11 October 2002

CONTENTS

• [01] President receives EC progress report on Cyprus
• [02] Finance Minister initiates discussion of 2003 state budget
• [03] Washington welcomes EC report on enlargement
• [04] Cyprus represented at the 9th session of the Convention on Future of Europe
• [05] Cyprus Ambassador to France presents credentials

[01] President receives EC progress report on Cyprus

Mr. Clerides made the above statements after his meeting with the Head of the European Commission's delegation in Cyprus Ambassador Adriaan van der Meer, yesterday at the Presidential Palace, where the latter handed over to the President a copy of the progress report.

Receiving the report, Mr. Clerides noted: "It is a first vindication of the correct strategy we have followed with regard to the Cyprus problem and of the huge efforts by everyone to successfully prepare Cyprus for its accession to the big European family."

"I welcome this very important decision as a historic development which concerns all the lawful citizens of our island, Greek Cypriots and Turkish Cypriots", the Cyprus President added, expressing hope that the final goal of Cyprus' entry into the EU would be achieved at Copenhagen on 12 December.

The President thanked the foreign governments that assisted Cyprus' EU accession course, especially the Greek government and the political leadership in Greece for their "invaluable support". He also congratulated the Chief Negotiator for Cyprus' accession to the EU, Mr. George Vassiliou and his team for their work.

On his turn, the EC chief delegate Mr. van der Meer said that "the Commission has recognised the work done and is confident that Cyprus can be considered ready for accession as a full member state". At the same time, he pointed out that it was not all over yet, as it is now up to the 15 member states to adopt the Commission's recommendations, but that "the final stages have been launched".

Earlier yesterday, the Cyprus' Chief EU Negotiator, Mr. Vassiliou, said the future of Cyprus was now going to be different, adding: "The accession will pave the way for Cyprus' reunification and for a substantial rise of the standard of living of our people." He also expressed confidence that the Commission's recommendations would be ratified by the European Council at Copenhagen in December.

[02] Finance Minister initiates discussion of 2003 state budget

The Minister referred to the prevailing uncertain economic climate, exacerbated due to the recent developments in the Middle East and Iraq but also to the great achievement of the Republic of Cyprus regarding the anticipated successful completion of the accession negotiations with the EU. "The Regular Report published by the European Commission emphasises the sound fundamentals of the Cyprus economy, which is assessed to be ready to successfully confront the challenge of integration into the EU and confirms the achievements of Cyprus in the economic sphere in the last years", he added.

In his speech, Mr. Klerides outlined that during 2001 and 2002 the Cyprus economy faced and is still facing an adverse external environment. Nevertheless, as the Minister pointed out, the Government set specific strategic goals and succeeded in achieving them. These include the positive record in macroeconomic stability, manifested in the low inflation rate and the containment of the fiscal deficit below 3% of GDP, thus fulfilling the corresponding Maastricht criterion, the improvement of the standard of living, the enhancement of competitiveness and the modernization of the public sector.

The Minister of Finance added: "The epitome of the achievement of the ambitious goals set by the Government is the fact that Cyprus today is internationally acknowledged as a respectable economy, characterized by high credibility and the high standard of services it provides".

Mr. Klerides also made special reference to the economic and social policy of the Government based on the Strategic Development Plan and on the Revised Pre-accession Economic Programme 2001-2005, which was submitted to the EU, saying that the targets included in those two programs were based on three pillars, "Growth-Competitiveness-Reforms".

In other parts of his speech, the Minister referred to the generous agricultural policy pursued by the Government, the continuous restructuring of the manufacturing sector, through the encouragement of the introduction of new technology, and the high growth of the service' s sectors, in which Cyprus possesses comparative advantages. In particular, Mr. Klerides pointed out that an indispensable part of the Government's policy was "…the smooth transition and restructuring of the Cyprus economy, with services playing a dominant role, and the exploitation of the opportunities arising from new technology and new economy".

The Minister also referred to the significant institutional progress achieved in the financial sector. As concerns the social policy, Mr. Klerides mentioned various programmes promoted by the Government, which target further social cohesion.

In his speech, he gave particular emphasis to the recent tax reform and its positive effects on the economy and social welfare, underlining that the significant increase of the tax exempted income to £10.000, the reduction of income tax rates and the decrease of corporation tax to 10% for both, local and international enterprises, are expected to boost the economy and enhance at the same time, the role of Cyprus as an attractive international business centre.

The Minister of Finance stated that the economic policy followed by the Government targets to maximizing prosperity for the people of Cyprus through EU accession. He concluded, by expressing his confidence saying, that the people of Cyprus will fulfil their vision of freedom, prosperity and security.

[03] Washington welcomes EC report on enlargement

Mr. Boucher, speaking at a press briefing at the State Capital on Wednesday, emphasised that although the US is not a member of the European Union, it supports the EU expansion since "it broadens the zone of political stability and economic prosperity in Europe".

Asked to comment on whether Washington was exerting pressure on the EU to grant Turkey a date to begin accession negotiations, the State Department Spokesman noted that "it is in the strategic interest of the United States and the European Union, of Turkey and the European Union, that Turkey and the European Union build the closest possible relations" and expressed the view that "Turkey's future is in Europe."

He added that Washington would "continue to be in touch" with the EU regarding this issue, until the final decisions were taken in Copenhagen.

On Cyprus, Mr. Boucher said that the EU could make a contribution towards the resolution of the Cyprus issue and reiterated Washington's support in the efforts of the UN Secretary-General in this regard.

[04] Cyprus represented at the 9th session of the Convention on Future of Europe

During the session, the conclusions drawn up by the work groups, that were set up to examine the principle of subsidiarity and the legal status of the European Union, were presented and discussed. There was also a presentation of the preliminary results of the work groups on the role of the National Parliaments and the Human Rights Charter.

In his comments with regard to the legal status of the EU, Mr. Attalides, pointed out that a common European legal status was directly related to the objectives for simplification, transparency and a reinforced EU presence in the international scene.

Prior to the session, the Cyprus delegate participated in the works of the group of government representatives, which examined the delegation of competences at the community level. He also took part in the work group on the EU's external policy.

[05] Cyprus Ambassador to France presents credentials

Ambassador Hadjimichael briefed Mr. Chirac on the latest developments regarding the Cyprus problem and informed him of the Cyprus Government's satisfaction over the European Commission's strategy paper on enlargement.

Receiving the credentials, President Chirac assured the Cyprus Ambassador that France fully supported the efforts to resolve the Cyprus issue as well as Cyprus' EU accession course.

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

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