Cyprus and the European Union

Historical overview

The Republic of Cyprus, a small island country situated in the Eastern Mediterranean sea, joined the European Union on 1st May 2004. Relationships between Cyprus and the European Union began in 1973 with the Associate Agreement between Cyprus and the European Economic Community (EEC). The purpose of this agreement was to consolidate and expand trade, and the economic relations between Cyprus and the European Community. On 3rd July 1990 Cyprus submitted an application to become a member of the EEC. The application was critically assessed and Cyprus was found to satisfy the criteria of membership and suitable in 1993. This was reaffirmed in 1995. The accession of Cyprus, also, required harmonisation between Cypriot and European law, known as Acquis screening. This process was designed to determine the areas where necessary changes in Cypriot law needed to be made in order to harmonise it with EU legislation. This screening process was concluded in 2000 and implementation of these changes began and were assessed on a regular basis. The first Regular Report to the European Commission was submitted November 1998. Regular Reports and preparation for membership:

For an in-depth overview and details of further negotiations, go to: Embassy of the Republic of Cyprus - A Historical Overview

 

EU supporting Cypriot economic recovery

Cyprus adopted the Euro on 1st January 2008. Since then the Cypriot economy has been erratic. In 2009 the Cypriot economy went into recession, which was mainly due to the large drop in the shipping and tourism sectors. Economic growth between 2010 and 2012 was weak and insufficient to counteract the 2009 recession. Property values had declined and there was an increase in non-performing loans. This combination of economic downfalls lead to the Cypriot financial crisis in 2012. In an attempt to address this problem the EU provided a number of investments to help boost the economy:

Relevant Publications

Further information: