Cyprus at a Glance_EN

Member of the European Union On 1 May 2004 the Republic of Cyprus became a full member of the EU. Accession to the EU was a natural choice for Cyprus, dictated by its culture, civilisation, history, its European outlook and adherence to the ideals of democracy, freedom and justice. The application of the EU laws and regulations (the acquis communautaire) is suspended in the area under military occupation by Turkey, pending a solution to the occupation and forcible division of the country. Meanwhile, the government, in cooperation with the EU Commission, has been promoting arrangements to facilitate increased economic transactions between the two communities and improve the standard of living of Turkish Cypriots. While Cyprus has a lot to benefit from EU membership, it also has a lot to offer as a member state. Strategically situated at the crossroads of Europe, the Middle East, North Africa and Asia, Cyprus is becoming an even more important regional business centre, as well as an international communications and transport hub. Given its modern infrastructure, sound legal system, tax incentives, low crime rate and well educated labour force, Cyprus is a favourite regional operations platform for European and other international companies. Since its accession to the EU, Cyprus has undergone significant structural reforms that have transformed its economic landscape. Trade and interest rates have been liberalised, while price controls and investment restrictions have been lifted. Private financing has been introduced for the construction and operation of major infrastructure projects and monopolies have been abolished. The political context that has been created since the accession to the EU impacts positively on the efforts to reach a comprehensive settlement to the division of Cyprus that will reunite its people and reintegrate its economy. Cyprus held the Presidency of the Council of the European Union for the first time from July – December 2012. During this period an agreement on the Unitary Patent Package and on the Single Supervisory Mechanism (SSM) was reached, negotiations for a Free Trade Agreement with Japan were launched, while the same negotiations with Singapore were completed. Significant progress was also achieved on the Multiannual Financial Framework and the Common European Asylum System. 8