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Cyprus peace would carry hefty dividend March 7, 2008

Posted by grhomeboy in Business & Economy, Cyprus News, Cyprus Occupied.
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Cyprus’ economy would gain at least 1.8 billion euros ($2.75 billion) on an annual basis if there were a reunification deal on the ethnically partitioned island, economists said yesterday.

Economic benefits would come mainly from new business opportunities with Turkey, tourism revenue and construction, the survey sponsored by the Norway-based Peace Research Institute Oslo (PRIO) said. “Translated into household income, the annual dividend per family comes to approximately 5,500 euros per year,” PRIO said in a news release yesterday. That represents 20 percent of the average income of Greek Cypriots, and 40 percent of Turkish Cypriots, it added.

Cyprus, an island of around 1 million people, was partitioned in a Turkish invasion in 1974. Greek Cypriots, who represent the island in the European Union, have no direct trade or diplomatic links with the Turkish-led statelet in the island’s Turkish occupied and military controlled north.

The southern areas of Cyprus controlled by the Greek-Cypriot government joined the eurozone on January 1, 2008. The northern part, a Turkish-Cypriot breakaway state recognized only by the government in Ankara, stayed out.

Economic disparities between the two sides are huge. Gross domestic product in the south was 15.5 billion in 2007, and approximately 2 billion in the north in 2006, according to the latest data available.

Economists from both sides of the divide based their projections on a seven-year game plan should a settlement be reached in 2009, and using Greco-Turkish trade relations, which have flourished in the past decade, as their reference point.

Greek and Turkish-Cypriot community leaders are expected to meet in the last fortnight of March to discuss how to resume peace talks. Reunification efforts collapsed in 2004 when Greek Cypriots rejected a UN settlement blueprint accepted by Turkish Cypriots.

PRIO is financed by the Norwegian Research Council, the United Nations and the World Bank.

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