The Cyprus Chamber of Commerce and Industry is convinced that the division of Cyprus cannot continue.

In our view, in maintaining the status quo, the only losers will be the Cypriot people, even if we only take into consideration the economic benefits that a fair, viable and functional solution of the Cyprus problem will bring with it.

A number of studies, and focus group sessions conducted by our Chamber and also by others such as the Peace Research Institute Oslo (PRIO), have shown the economic benefits that will accrue from a comprehensive solution to the Cyprus problem will be immense. This gains additional importance if one considers the effects of the economic crisis on communities in Cyprus, and the difficult economic situation the island faces.

A just, functional and viable solution will secure a single international personality, and safeguard basic freedoms and human rights, meaning significant improvement for the investment climate, and increased attraction of foreign investments. It will provide the ability to reach out to presently unexploited markets across the world, including the vast Turkish market, help stimulate economic sectors that are now moribund or experiencing problems, and benefit employment levels by drastically reducing unemployment and particularly youth unemployment.

I would like to make a special reference to the benefits that will come about as a result of the normalisation of the relations of Cyprus with Turkey, which constitutes the largest market in the region. A potential double tax treaty with Turkey will allow Cyprus to provide a wide range of high quality professional services to Turkish companies, while more generally the commercial and economic ties between the two countries will develop and strengthen.

This will allow Cyprus to benefit from the large manufacturing base of Turkey, with considerable benefits for consumers as a result of reduced prices. The biggest benefits though, will unquestionably result for the shipping sector. Ships that sail under the flag of Cyprus will be allowed to use Turkish ports, which will strengthen Cyprus’ position as the largest ship management centre in Europe, providing at the same time access to the emerging and expanding markets of Central Asia and beyond.

The large list of benefits also includes the increase in the importance of Cyprus as an international business centre, and other obvious benefits for Turkey as well, resulting from the recent discovery of natural gas reserves in the Exclusive Economic Zone of Cyprus. Tourism will benefit as a result of the integrated tourism product that will come about, and the vast amount of reconstruction that will take place, particularly in Varosha, the closed city of Famagusta will benefit construction.

Agriculture will be boosted through the water from Turkey project, where 75 million cubic metres of water will be brought annually to Cyprus alleviating water pressure across the island. The real estate sector will be boosted through the resolution of the property issue, and an increase in the demand for holiday homes from abroad, boosting at the same time the construction and the real estate sector that have been affected most severely by the economic crisis.

I would like to mention that a recent study by PRIO found that with a solution to the Cyprus problem, all-island GDP (at constant 2012 prices) would rise from just over €20bn in 2012 to just under €45bn by 2035, (that is, in year 20 after the settlement) compared with around €25bn without a solution. In other words, the peace dividend over 20 years would be approximately €20bn. GDP per capita would be €12,000 higher by year 35 with a solution than without one; the annual average growth rate would be 4.5% on average over 20 years, compared with just 1.6% without a solution.

I have chosen to use the above PRIO figures not as an absolute and unquestionable reference, as we all know that forecasts are based on a number of assumptions that can be questioned, but rather to show in broad lines the kind of magnitude of the benefits I have mentioned.

The Cyprus Chamber of Commerce and Industry does not spare any effort in stressing the benefits of a solution. I would like to reiterate that our Chamber is convinced that a comprehensive solution of the Cyprus problem will bring considerable benefits not only to the economy of Cyprus, enhancing the welfare and prosperity of all Cypriots but also to the entire region and particularly the area that encompasses Cyprus, Greece and Turkey within an enlarged European Union, where democratic principles, human rights and fundamental freedoms will be respected and a common and prosperous future will be ensured.

We believe that a solution will increase stability and security in the region and will create huge opportunities for cooperation and economic exchanges between Cyprus, Greece and Turkey focusing not only on their own markets but also on the vast European and Middle Eastern markets and beyond.

We have now in front of us a unique opportunity to resolve the Cyprus problem in a just, functional and viable manner and we cannot afford to miss it. We are looking forward to the successful conclusion of the intercommunal talks that have recently been resumed, hoping that this time we will manage to achieve our common target, which is none other than the reunification of our country.

We express our commitment to actively contributing to the process and are ready to support the efforts of the political leadership in any way we can. The status quo is indeed unacceptable and its prolonging will have negative consequences for all. We commit that we will do our utmost so that this opportunity is not lost. We owe it to our children and the future generations of this country.We owe it to the people of Cyprus.

PHIDIAS PILIDES,
President of the Cyprus Chamber of Commerce and Industry