Tag Archives: Cyprus

Enlargement 2004 and 2007

Enlargement 2004 and 2007

Outline of the Community (European Union) legislation about Enlargement 2004 and 2007

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Enlargement > Enlargement 2004 and 2007

Enlargement 2004 and 2007

The fifth enlargement is historic and unprecedented in the history of the European Union. The ten Central and Eastern European countries, together with Cyprus and Malta, joined the EU in two successive waves in 2004 and 2007. In this context, the EU paved the way for the current enlargement process by establishing suitable instruments to be able to respond not only to the needs of the candidate countries, but also to the specific needs of the EU to receive them.

  • Bulgaria – adoption of the community acquis
  • Romania – adoption of the community acquis
  • Cyprus – adoption of the community acquis
  • Estonia – adoption of the community acquis
  • Hungary – adoption of the community acquis
  • Latvia – adoption of the community acquis
  • Lithuania – adoption of the community acquis
  • Malta – adoption of the community acquis
  • Poland – adoption of the community acquis
  • Czech republic – adoption of the community acquis
  • Slovakia – adoption of the community acquis
  • Slovenia – adoption of the community acquis
  • Partnership for the accession of Cyprus
  • Partnership for the accession of Estonia
  • Partnership for the accession of Hungary
  • Partnership for the accession of Latvia
  • Partnership for the accession of Lithuania
  • Partnership for the accession of Malta
  • Partnership for the accession of Poland
  • Partnership for the accession of the Czech Republic
  • Partnership for the accession of Slovakia
  • Partnership for the accession of Slovenia

HISTORY OF EASTERN ENLARGEMENT

General Provisions

  • The 2004 enlargement: the challenge of a 25-member EU
  • Enlargement, two years after – an economic success
  • The communication strategy on enlargement
  • Participation of the Central and Eastern European candidate countries in Community programmes
  • The challenge of enlargement
  • Agenda 2000: for a stronger and wider Union

Sectoral approach

  • Enlargement of the euro area after 1 May 2004
  • Joint assessments of employment policies in the candidate countries
  • Community response to the flooding in central Europe
  • Strengthening administrative and judicial capacity
  • Nuclear safety in the Newly Independent States and Central and Eastern Europe
  • Accession strategies for the environment
  • Community action for regions bordering the candidate countries

PRE-ACCESSION INSTRUMENTS 2000-2006

  • Phare Programme
  • Pre-accession agricultural instrument (SAPARD)
  • Instrument for structural policy for pre-accession
  • Cross-border cooperation programme
  • Coordination instrument

ENLARGEMENT 2007

  • Roadmaps for Bulgaria and Romania

Bulgaria

  • Partnership for the accession of Bulgaria

Romania

  • The Accession Partnership with Romania

ENLARGEMENT 2004

Cyprus

  • Partnership for the accession of Cyprus

Estonia

  • Partnership for the accession of Estonia

Hungary

  • Partnership for the accession of Hungary

Latvia

  • Partnership for the accession of Latvia

Lithuania

  • Partnership for the accession of Lithuania

Malta

  • Partnership for the accession of Malta

Poland

  • Partnership for the accession of Poland

Czech Republic

  • Partnership for the accession of the Czech Republic

Slovakia

  • Partnership for the accession of Slovakia

Slovenia

  • Partnership for the accession of Slovenia

Relations with the northern part of Cyprus

Relations with the northern part of Cyprus

Outline of the Community (European Union) legislation about Relations with the northern part of Cyprus

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Enlargement > Ongoing enlargement

Relations with the northern part of Cyprus

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions of 3 June 2003, “Ways of promoting economic development in the northern part of Cyprus and bringing it closer to the Union” [COM (2003) 325 final – Not published in the Official Journal].

Summary

In the absence of an overall settlement to the de facto partition of Cyprus, this communication proposes measures to promote the economy of the northern section of the island and bring it closer to the Union. Two types of measure are identified: financial assistance and trade.

Financial aid

In 2003, EUR 9 million in financial aid to promote economic development is to go to the following projects:

  • infrastructure projects in large towns of the northern part of the island;
  • grant aid to SMEs;
  • preparatory studies for integration of the northern section into the Union once a political solution to the partition of the island has been found;

In 2003 the Commission will step up its information work to bring Northern Cyprus closer to the Union; EUR 3 million will be allocated to the following activities:

  • organising seminars on the Community acquis for citizens of Northern Cyprus;
  • organising visits by Turkish Cypriot citizens to EU institutions;
  • consulting Cypriot authorities to find out how to encourage participation by citizens of the northern section in Community programmes;
  • cooperation with Member States;
  • support for civil society and social partners of the northern section;
  • continuation of the translation of the Community acquis into Turkish.

Trade

The communication proposes adoption of a system enabling products from Northern Cyprus to be exported under a preferential tariff system pursuant to the Association Agreement signed between Cyprus and the Union. Since 1994, non-acceptance of certificates issued by the Turkish Republic of Northern Cyprus has prevented exports from this part of the island from benefiting from the preferential customs treatment granted to the rest of Cyprus under the Association Agreement. Under the new system, the Cypriot Chamber of Commerce will be responsible for issuing certificates for the movement of goods produced or obtained in the northern part of the island.

Related Acts

Communication from the Commission to the European Parliament and the Council – Annual Report 2006-2007 on the implementation of Community assistance under Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community [COM(2007) 0536 final – Not published in the Official Journal].
This report follows the first year of the implementation of the economic assistance programme for the Turkish Cypriot community. The report is positive, in particular due to the strengthening of the administrative capacity. However, the programme duration was reduced from five years (2005-2009) to three years (2007-2009). The overall reduction in planning also means a reduction in the deadlines for awarding contracts.

Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community and amending Council Regulation (EC) No 2667/2000 on the European Agency for Reconstruction [Official Journal L 65 of 07.03.2006].

FREE MOVEMENT OF PEOPLE, SERVICES AND GOODS

Communication from the Commission of 27 August 2008 – Annual Report on the implementation of Council Regulation (EC) 866/2004 of 29 April 2004 and the situation resulting from its application [COM(2008) 529 final – Not published in the Official Journal].
The Commission considers that Regulation (EC) No 389/2006 constitutes an adapted legal framework. The number of people crossing the line doubled between 1 May 2007 and 30 April 2008, reaching the highest level since the green line was established. However, illegal immigration is still increasing. The flow of goods has increased by a third during the reporting period, despite the continuing obstacles to trade, particularly for goods originating in the northern part of the island, which is not under effective government control. The Regulation was amended on 16 June 2008, in order to facilitate trade between the two areas. The Commission shall continue to monitor the implementation of the Regulation.

Commission Decision 2007/330/ECof 4 May 2007 lifting prohibitions on the movement of certain animal products on the island of Cyprus under Council Regulation (EC) No 866/2004 and laying down conditions for the movement of those products (notified under document number C(2007) 1911) (Text with EEA relevance)[Official Journal L 123 of 12.5.2007].

Council Regulation (EC) No 866/2004 of 29 April 2004 on a regime under Article 2 of Protocol No 10 of the 2003 Act of Accession[Official Journal L 161 of 30.4.2004].
The areas where the Government of the Republic of Cyprus exercises effective control and those where they do not have effective control are separated by a line.

This line does not constitute an external border of the EU. This Regulation establishes the conditions under which checks on persons, goods and services crossing the line will be carried out.

Mediterranean partner countries

Mediterranean partner countries

Outline of the Community (European Union) legislation about Mediterranean partner countries

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Mediterranean partner countries

Mediterranean partner countries

GENERAL FRAMEWORK

Framework for relations

  • Partnership for democracy and prosperity with the Southern Mediterranean
  • Barcelona Process: Union for the Mediterranean
  • Euro-Mediterranean Association Agreements
  • Pan-Euro-Mediterranean system of cumulation of origin

Barcelona Process: Euro-Mediterranean Partnership

  • Tenth anniversary of the Euro-Mediterranean Partnership
  • The Valencia Ministerial Conference and its Action Plan
  • Reinvigorating the Barcelona process
  • Barcelona Declaration and Euro-Mediterranean partnership
  • EU Common Strategy for the Mediterranean

European Neighbourhood Policy

  • New neighbourhood policy strategy
  • Taking stock of the European Neighbourhood Policy
  • Neighbourhood policy: participation in European Union Agencies and programmes
  • Neighbourhood Policy – Strategy paper
  • Neighbourhood Policy: 2008 Report
  • Implementation of the European Neighbourhood Policy in 2007
  • European Neighbourhood Policy: recommendations for Armenia, Azerbaijan and Georgia and for Egypt and Lebanon

FINANCIAL INSTRUMENTS

  • European Neighbourhood and Partnership Instrument (2007 – 2013)
  • Euro-Mediterranean Regional Strategy and Indicative Programme 2007-2013
  • Inter-regional programme: Strategy paper 2007-2013 and indicative programme 2007-2010
  • Cross-border cooperation (CBC) 2007-2013
  • Common framework for joint multiannual programming
  • MEDA programme
  • Financial and technical cooperation with the West Bank and the Gaza Strip

SECTORAL COOPERATION

  • Human rights and relations in the Mediterranean
  • Environment strategy for the Mediterranean
  • Euro-African Partnership for infrastructure
  • Cooperation with Non-EU Member Countries on nuclear safety
  • European Training Foundation (ETF)
  • Combating HIV/AIDS in the European Union and neighbouring countries (2009-2013)
  • Action on HIV/AIDS in the European Union and neighbouring countries 2006 – 2009

Accession of Cyprus and Malta to euro area

Accession of Cyprus and Malta to euro area

Outline of the Community (European Union) legislation about Accession of Cyprus and Malta to euro area

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Economic and monetary affairs > Institutional and economic framework of the euro

Accession of Cyprus and Malta to euro area (2008)

Acts

Council Decision 2007/503/EC of 10 July 2007 in accordance with Article 122(2) of the Treaty on the adoption by Cyprus of the single currency on 1 January 2008.

Council Decision 2007/504/EC of 10 July 2007 in accordance with Article 122(2) of the Treaty on the adoption by Malta of the single currency on 1 January 2008.

Summary

In these two Decisions, the Council states that Cyprus and Malta satisfy all the conditions required to adopt the euro:

  • Cyprus and Malta satisfy the requirements established by the convergence criteria: price stability, the government budgetary position, participation in the exchange mechanism of the European monetary system, the existence of a satisfactory long-term interest rate;
  • Cyprus and Malta have national legislation which is compatible with the introduction of the euro.

Consequently, the Council chose the date of 1 January 2008 for these two Member States to adopt the euro.

Procedure

During its meeting of 10 July 2007, the Economic and Monetary Affairs Council gave the go-ahead for the introduction of the euro in Cyprus and Malta. Prior to that, the European Commission had established in the convergence reports that both States fulfilled the membership criteria for the Economic and Monetary Union.

These Decisions are addressed to the Member States. They stipulate that Cyprus and Malta fulfil the necessary conditions for the adoption of the single currency. They repeal the derogations in favour of the two countries referred to in Article 4 of the 2003 Act of Accession.

The Council decides which Member States fulfil the necessary conditions for the adoption of the euro, i.e. compatibility of their national legislation with the Community acquis and the convergence criteria set out in Article 140 of the Treaty on the Functioning of the EU (formerly Article 121 of the EC Treaty). The two proposals presented by the Commission on 16 May 2007 (Cyprus: CNS/2007/0090 and Malta: CNS/2007/0092) resulted in the present Decisions.

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Decision 2007/503/EC

Date of notification

OJ L 186 of 18.7.2007

Decision 2007/504/EC

Date of notification

OJ L 186 of 18.7.2007

RELATED ACTS

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee, the Committee of the Regions and the European Central Bank of 18 April 2008 on the introduction of the euro in Cyprus and Malta [COM(2008) 204 final – Not published in the Official Journal].

The Commission presents the results of the introduction of the single currency in Cyprus and Malta. It draws lessons from these for future changeovers to the euro (link to new summary EC000) in European Union Member States.

Cyprus – adoption of the community acquis

Cyprus – adoption of the community acquis

Outline of the Community (European Union) legislation about Cyprus – adoption of the community acquis

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Enlargement > Enlargement 2004 and 2007 > Cyprus – adoption of the community acquis

Cyprus – adoption of the community acquis

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Cyprus

Cyprus

Outline of the Community (European Union) legislation about Cyprus

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Competition > Competition: international dimension and enlargement

Cyprus

1) References

Commission Opinion [COM(1993) 313 final – Not published in the Official Journal]
Commission Report [COM(1998) 710 final – Not published in the Official Journal]
Commission Report [COM(1999) 502 final – Not published in the Official Journal]
Commission Report [COM(2000) 702 final – Not published in the Official Journal]
Commission Report [COM(2001) 700 final – SEC(2001) 1745 – Not published in the Official Journal]
Commission Report [COM(2002) 700 final – SEC(2002) 1401 – Not published in the Official Journal]
Commission Report [COM(2003) 675 final – SEC(2003) 1202 – Not published in the Official Journal]
Treaty of Accession to the European Union [Official Journal L 236 of 23.09.2003]

2) Summary

In its Opinion of July 1993, the Commission took the view that the Cypriot legislation that entered into force in 1990 was similar to the legislation of the European Community, although it did not have sufficient information at its disposal to assess whether the Cypriot legislation was being implemented effectively.

The Report of November 1998 found the anti-trust legislation in force to be generally compatible with Community law, but it stated that more work was needed on enforcement and in the area of state aid.

In its Report of October 1999, the Commission concluded that considerable progress had been achieved in anti-trust legislation with the adoption of the merger control law. However, Cyprus should have continued to make further efforts with regard to state aid, firms with special rights and state monopolies.

The November 2000 Report recorded satisfactory progress in antitrust legislation but criticised the inertia with regard to state aid.

The November 2001 Report states that progress has been made in both antitrust law – especially as a result of the increased powers of the Competition Protection Commission with regard to investigations and the imposition of penalties – and in State aid following the entry into force of a new law on the control of pubic aid.

The October 2002 Report found that Cyprus had made further progress in this area.

The November 2003 Report states that Cypriot competition policy is meeting the commitments arising from the accession negotiations. However, in the case of the legislation governing existing monopolies, Cyprus still has to achieve full alignment with the acquis.
The Treaty of Accession was signed on 16 April 2003 and accession took place on 1 May 2004.

COMMUNITY ACQUIS

The competition rules of the European Community derive from Article 3(g) of the EC Treaty, which provides that the activities of the Community are to include “a system ensuring that competition in the internal market is not distorted”. The main areas of application are agreements between undertakings, abuses of dominant positions and State aid, dealt with under Articles 81, 82 and 87 (ex-Articles 85, 86 and 92) of the EC Treaty.

Cyprus is therefore called upon to apply progressively the provisions of the Merger Control Regulations (4064/89) and Articles 31 (ex-Article 37) and 86 (ex-Article 90) concerning monopolies and special rights of the EC Treaty.

EVALUATION

The new antitrust legislation, which has been in force since 1989, started the process of aligning antitrust legislation with the Community acquis. In order to complete the work, further legislative efforts are needed, in particular with regard to secondary legislation.

At administrative level, in April 2002 Cyprus submitted an “Action plan for strengthening the administrative capacity of the Commission for the Protection of Competition”, designed to further strengthen the structure of the CPC.

As regards state aid, the overall assessment is positive. The Public Aid Control Law of 2001 contains the main principles of state aid control. Only the legislation on monopolies remains to be aligned fully with the acquis. The Office of the Commissioner for Public Aid is functioning well. In addition, the reform of the tax system is in place: as of January 2003 all fiscal aid will be subject to state aid control.

Negotiations on this chapter have been provisionally closed. Cyprus now needs to ensure that it continues to update its alignment as the acquis in this area evolves.

This summary is for information only and is not designed to interpret or replace the reference document.

 


Another Normative about Cyprus

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Enlargement > Enlargement 2004 and 2007 > Cyprus – adoption of the community acquis

Cyprus

1) References

Commission Report [COM(98) 710 final – Not published in the Official Journal]
Commission Report [COM(1999) 502 final – Not published in the Official Journal]
Commission Report [COM(2000) 702 final – Not published in the Official Journal]
Commission Report [COM(2001) 700 final – SEC(2001) 1745 – Not published in the Official Journal]
Commission Report [COM(2002) 700 final – SEC(2002) 1401 – Not published in the Official Journal]
Commission Report [COM(2003) 675 final – SEC(2003) 1202 – Not published in the Official Journal]
Treaty of Accession to the European Union [Official Journal L 236 of 23.09.2003]

2) Summary

The 1998 Report stated that Cypriot legislation was in line with Community provisions. Since 1997, Cyprus has also been taking part in Community programmes in the areas of education, training and youth.

The October 1999 Report emphasised that the free movement of persons and the principle of non-discrimination, particularly on grounds of nationality, had to be applied in the areas of education, training and youth. Cyprus planned to continue participating in Community programmes in these areas.

The November 2000 Report emphasised that Cyprus had made progress in aligning its legislation with the acquis and in capacity-building measures in this area. Further efforts were needed in drafting the strategy and implementing the legislation.

The November 2001 Report stated that Cyprus had made significant progress. With regard to legislation, the adoption of a new law on qualifications fully transposed the Directive on the education of children of migrant workers, while amendments to the education and vocational training act tackled reform of the sector. Cyprus was also participating in the second generation of Community programmes (Socrates, Leonardo and Youth).

The October 2002 Report noted that Cyprus had made further progress in this field. However, it needed to focus further on the development and implementation of the reforms, including the development of a lifelong learning system and of secondary technical and vocational education.

The November 2003 Report considers that Cyprus is largely in line with the acquis but that it needs to implement it properly in relation to the education of the children of migrant workers.
The Treaty of Accession was signed on 16 April 2003 and accession took place on 1 May 2004.

COMMUNITY ACQUIS

The EC Treaty provides for:

  • the contribution of the Community to the development of quality education including a European dimension, supporting and supplementing the action of the Member States while fully respecting their cultural and linguistic diversity (Article 149, ex Article 126) with regard to the content of teaching and the organisation of education systems;
  • the implementation of a vocational training policy which supports and supplements the action of the Member States (Article 150, ex Article 127), with the aim of facilitating adaptation to industrial changes and integration into the labour market.

These provisions have been implemented mainly through three major action programmes (Socrates, Leonardo da Vinci and Youth for Europe) recently updated by a new generation of programmes (Socrates, Leonardo and Youth).

EVALUATION

Cyprus has made good progress in education, training and youth. Significant progress was made in the mutual recognition of qualifications when a new law was adopted in November 1999 which provided inter alia for standards in vocational qualifications to be drawn up. A council for the recognition and academic equivalence of higher education qualifications has also been set up.

Cyprus has been taking part in the Socrates, Leonardo and Youth programmes since 1 November 1997.

The reform of education and vocational training at secondary level has made a great deal of progress because of changes introduced to the law in November 2000. These changes made it possible to decentralise powers to the regions and to set up the University of Applied Sciences and Arts and the Centre for Distance and Lifelong Learning. Information technology has been introduced in all primary schools. Despite the progress achieved, the administrative capacity of the Ministry of Education and Science needs to be increased, and it is necessary to develop a system of lifelong learning as well as secondary technical and vocational education.

With regard to non-discrimination of EU nationals in the field of education, the European baccalaureat is recognised as being equivalent to the corresponding qualifications in Cyprus. Further alignment with the acquis is needed in relation to the equal treatment of students in higher education, for example in tuition fees, to prevent discrimination between Cypriots and EU nationals. In this connection a pilot project for the development of standards for vocational qualifications was completed in 2002.

The principles of the legislation in force concerning the education of the children of migrant workers are in line with the acquis. Furthermore, there are already provisions on this issue in state schools. A number of teachers have been specially trained to teach the local language and to help to integrate these children into the school system, and a special training programme for teachers in this field is currently being drawn up. In November 2000 the Cypriot Parliament adopted a new law on qualifications, which fully transposes the Directive on the education of children of migrant workers, and opened a new credit line for this.
However, Cyprus must continue to properly implement the acquis in relation to the education of the children of migrant workers.
The EU’s main languages are already taught in state schools.

Since the Commission’s 1998 Report, Cyprus has made steady progress. Negotiations on this chapter have been provisionally closed (see 2002 Report). Cyprus has not requested any transitional arrangements in this area.

This summary is for information only and is not designed to interpret or replace the reference document.


Another Normative about Cyprus

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Enlargement > Enlargement 2004 and 2007 > Cyprus – adoption of the community acquis

Cyprus

1) References

Commission Opinion [COM(93) 313 final – Not published in the Official Journal]
Commission Report [COM(98) 710 final – Not published in the Official Journal]
Commission Report [COM(1999) 502 final – Not published in the Official Journal]
Commission Report [COM(2000) 702 final – Not published in the Official Journal]
Commission Report [SEC(2001) 1745 final – Not published in the Official Journal]
Commission Report [COM(2002) 700 final – Not published in the Official Journal]
Commission Report [COM(2003) 675 final – SEC(2003) 1202 – Not published in the Official Journal]
Treaty of Accession to the European Union [Official Journal L 236 of 23.09.2003]

2) Summary

In its Opinion of July 1993, the Commission stated that, in some cases, substantial changes were needed to Cypriot consumer law if Cyprus were to join the European Community in the future.

The Report of November 1998, whilst recognising the progress made so far, called for an additional effort to be made to complete the transposition of the acquis and the application of the legislation.

In its Report of October 1999, the Commission stated that substantial progress had been made since the last report, particularly in the area of legislation.

The Report of October 2002 stated that Cyprus had reached an advanced stage in the area of legislative alignment and administrative capacity. Negotiations on this chapter had been provisionally closed and Cyprus had not requested any transitional measures.

The Report of October 2003 states that Cyprus meets most of the accession requirements in the areas of market surveillance and non-safety related measures. Continued efforts are needed to fully transpose and implement the Community acquis.
The Treaty of Accession was signed on 16 April 2003 and accession took place on 1 May 2004.

COMMUNITY ACQUIS

The Community acquis covers the protection of consumers’ economic interests (notably in the fields of misleading advertising, indication of prices, consumer credit, unfair contract terms, distance selling, package travel, and timeshares), general product safety, cosmetics safety, the labelling of textile products and toy safety.
New, recently adopted Community legislation (distance selling, comparative advertising and indication of prices) must also be transposed.

EVALUATION

Cyprus has made good progress with the transposition of the Community acquis, both in the protection of consumers’ economic interests and in general product safety. However, progress still needs to be made in the following fields:

Safety-related measures:
The revised Directive on general product safety still needs to be implemented, and improvements made to the infrastructures that test this safety, in order to better satisfy the market surveillance requirements.

Non-safety-related measures:

There is a need to develop and strengthen the arbitration boards’ administrative structures, given the important role they play in settling consumer disputes.

Consumer associations:

Cyprus should do more to encourage greater participation from consumer associations in three areas:

  • shaping and implementing consumer policy;
  • developing safety standards for consumer products;
  • supporting activities related to market surveillance.

This summary is for information only and is not designed to interpret or replace the reference document.

 


Another Normative about Cyprus

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Enlargement > Enlargement 2004 and 2007 > Cyprus – adoption of the community acquis

Cyprus

1) References

Commission Opinion [COM(1993) 313 final – Not published in the Official Journal]
Commission Report [COM(1998) 710 final – Not published in the Official Journal]
Commission Report [COM(1999) 502 final – Not published in the Official Journal]
Commission Report [COM(2000) 702 final – Not published in the Official Journal]
Commission Report [COM(2001) 700 final – SEC(2001) 1745 – Not published in the Official Journal]
Commission Report [COM(2002) 700 final – SEC(2002) 1401 – Not published in the Official Journal]
Commission Report [COM(2003) 675 final – SEC(2003) 1202 – Not published in the Official Journal]
Treaty of Accession to the European Union [Official Journal L 236 of 23.09.2003]

2) Summary

In its Opinion of July 1993, the Commission took the view that the Cypriot legislation that entered into force in 1990 was similar to the legislation of the European Community, although it did not have sufficient information at its disposal to assess whether the Cypriot legislation was being implemented effectively.

The Report of November 1998 found the anti-trust legislation in force to be generally compatible with Community law, but it stated that more work was needed on enforcement and in the area of state aid.

In its Report of October 1999, the Commission concluded that considerable progress had been achieved in anti-trust legislation with the adoption of the merger control law. However, Cyprus should have continued to make further efforts with regard to state aid, firms with special rights and state monopolies.

The November 2000 Report recorded satisfactory progress in antitrust legislation but criticised the inertia with regard to state aid.

The November 2001 Report states that progress has been made in both antitrust law – especially as a result of the increased powers of the Competition Protection Commission with regard to investigations and the imposition of penalties – and in State aid following the entry into force of a new law on the control of pubic aid.

The October 2002 Report found that Cyprus had made further progress in this area.

The November 2003 Report states that Cypriot competition policy is meeting the commitments arising from the accession negotiations. However, in the case of the legislation governing existing monopolies, Cyprus still has to achieve full alignment with the acquis.
The Treaty of Accession was signed on 16 April 2003 and accession took place on 1 May 2004.

COMMUNITY ACQUIS

The competition rules of the European Community derive from Article 3(g) of the EC Treaty, which provides that the activities of the Community are to include “a system ensuring that competition in the internal market is not distorted”. The main areas of application are agreements between undertakings, abuses of dominant positions and State aid, dealt with under Articles 81, 82 and 87 (ex-Articles 85, 86 and 92) of the EC Treaty.

Cyprus is therefore called upon to apply progressively the provisions of the Merger Control Regulations (4064/89) and Articles 31 (ex-Article 37) and 86 (ex-Article 90) concerning monopolies and special rights of the EC Treaty.

EVALUATION

The new antitrust legislation, which has been in force since 1989, started the process of aligning antitrust legislation with the Community acquis. In order to complete the work, further legislative efforts are needed, in particular with regard to secondary legislation.

At administrative level, in April 2002 Cyprus submitted an “Action plan for strengthening the administrative capacity of the Commission for the Protection of Competition”, designed to further strengthen the structure of the CPC.

As regards state aid, the overall assessment is positive. The Public Aid Control Law of 2001 contains the main principles of state aid control. Only the legislation on monopolies remains to be aligned fully with the acquis. The Office of the Commissioner for Public Aid is functioning well. In addition, the reform of the tax system is in place: as of January 2003 all fiscal aid will be subject to state aid control.

Negotiations on this chapter have been provisionally closed. Cyprus now needs to ensure that it continues to update its alignment as the acquis in this area evolves.

This summary is for information only and is not designed to interpret or replace the reference document.