19th meeting of the Association Council between the EU and Cyprus

JOINT PRESS RELEASE

The EU-Cyprus Association Council held its 19th meeting on Tuesday 15 May 2001. Mr. Ioannis KASOULIDES, Minister for Foreign Affairs of Cyprus, chaired the meeting. Mrs. Anna LINDH, Minister for Foreign Affairs of Sweden and President-in-Office of the Council of the European Union, headed the European Union delegation. Mr. Eneko LANDABURU, Director-General for Enlargement, representing the Commission, and Mrs. Brigitte MINART, Minister Plenipotentiary at the Permanent Representation of Belgium to the European Union, were also part of the European Union delegation (Troïka format).

The Association Council welcomed the reaffirmation of the priority of the enlargement process by the Feira and the Nice European Councils, and recalled that the Nice European Council expressed its belief that the time has now come to lend fresh impetus to the process. In this context, the Association Council noted that the strategy outlined for the continuation of the accession negotiations, together with the completion of the Intergovernmental Conference on institutional reform, placed the Union in a position to welcome as new Member States from the end of 2002 those candidate countries that are ready.

Against this background, the Association Council provided a valuable opportunity to review Cyprus's progress in the framework of the pre-accession strategy and to consider priorities for further work within the framework of the Association Agreement.

2. The Association Council reviewed the state of Cyprus's preparation for accession in the light of the Accession Partnership, Cyprus's National Programme for Adoption of the Acquis and the latest Regular Report of the Commission.

The Association Council expressed its strong support for the talks under the aegis of the United Nations Secretary-General aiming at a comprehensive settlement of the Cyprus problem consistent with the relevant UN Security Council resolutions.

The Association Council noted that Cyprus has a functioning market economy and should be able to cope with competitive pressure and market forces within the Union. It noted the overall positive picture of the Cypriot economy, including the steady growth rate, the decreasing fiscal deficit and the comparatively low inflation and unemployment rates.

The Association Council noted with satisfaction that Cyprus had continued to make good progress in aligning its legislation to the EU "acquis" and had taken steps to set up the necessary institutional structures in most areas. It stressed the importance of continued progress in the field of, in particular, Agriculture, Maritime safety and Taxation.

3. The Association Council noted that the implementation of the Association Agreement is running smoothly and that no significant trade problems have been reported. Trade between the EU and Cyprus had increased. Furthermore, it noted that the derogation from the rules of origin for certain textile products had been agreed upon and would apply for a further period of two years.

The Association Council welcomed Cyprus's participation in the following Community programmes: Socrates, Leonardo da Vinci and Youth, as well as the Fifth Framework Programme for Research, Technological Development and Demonstration. The Association Council also noted that negotiations concerning Cyprus's participation in the European Environment Agency had been completed, and that following ratification and entry into force of the agreement Cyprus will become a member of the Agency.

The Association Council welcomed the proposal by the Cypriot side for the establishment, in the framework of the Association Agreement, of a Joint Consultative Committee which will allow for cooperation between the regions of the two parties, and looked forward to the initiation of the procedures for the formal adoption of the relevant decision.

The Association Council took note of the pre-accession assistance to Cyprus, including that support for operations to contribute to the reconciliation of the two Cypriot communities has been foreseen. It welcomed the planned further decentralization of EU assistance to Cyprus, allowing Cyprus to assume a larger responsibility over the implementation of EU pre-accession assistance. In addition, the Association Council underlined the valuable contribution of the European Investment Bank in financing the development of all productive sectors of the economy. It noted with satisfaction that the Bank expects that its lending in Cyprus will increase further.

4. The Association Council exchanged views on some international issues of common interest. It emphasized the importance of regional cooperation as a means of fostering stability and good neighborly relations and welcomed Cyprus's continuing role in this regard, including its participation in the framework of the Barcelona Process.

5. In conclusion, the Association Council expressed confidence in the development of relations within the Association Agreement and emphasized the crucial role it is further called on to play until Cyprus's accession to the European Union.

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• EU Presidency declaration on Cyprus (26/9/2001)