Latest Headlines

Bi-zonal Cyprus would be costly to maintain

28 September 2015

With a potential Cyprus settlement on the horizon, the question of pros and cons arise.

In an interview with the head of CIIM (Cyprus International Institute of Management) Theodoros Panayiotou has said that foreign investment, economic recovery, and higher employment would follow re-unification of Cyprus.

Investors would by drawn to the island if they saw a positive climate, a stable economy and functioning government there, he said.

Business volume would increase once the current political barriers have been raised and the economy is stabilised.

Settling the Cyprus problem would mean that there could be trade relations with Turkey and both Cyprus and Turkey could mutually benefit. Trade agreements could be broadened to include Greece and the Middle East.

He noted that Cyprus’ geographical location could make it a hub for international companies that want to exploit and trade natural gas.

With a solution to the Cyprus problem, the country will be a member of the European Union and the Eurozone, making it an ideal base for operations by these companies, which would bring huge benefits to the island, he added.

On the other hand, however, Panayiotou said, on the basis of a bi-zonal bi-communal federation an unwieldy state would be created, run by three governments with higher running costs that will be only get more expensive with time.

Panayiotou said that as he sees it, he would advise the leaders to tread wisely, and put themselves in the other’s shoes, so as to not end up with a country that will be destroyed and not recognised as the Republic of Cyprus that we know today.

Turkey’s role, he added, will be decisive in the stance it takes on the Cyprus problem.

Sigmalive

By