As July approaches, Cyprus sets out some of its main goals for its presidency of the EU.

“Development”, “solidarity” and “social cohesion”, these are the watchwords for the Presidency of EU Council according to Labour Minister Sotiroula Charalambous. Speaking at the conference “How the Cyprus Presidency of the EU will respond to the social consequences of the crisis” on April 19th the Minister said the focus will be on promoting jobs and combatting child p ove r t y. T h i s i s l i n k e d t o t h e Commission’s recommendation on child

poverty. Qualifications, traineeships, apprenticeships, and working conditions will all be considered as part of their goals for youth employment. This goal is directly linked to the forthcoming Employment Package. According to the Labour Minister children’s well-being will be the focus of a conference in October 2012 where children will participate and the results published later on. The involvement of the social partners, NGOs and local authorities in the implementation of Europe 2020 will be another area of focus for the Labour Minister. Concentrating on sectors such as employment, poverty and social exclusion, this subject will be addressed in the Informal EPSCO to be held in Cyprus in July 2012. It will address the gaps in the involvement of social partners in Europe. Other important issues for the Cyprus Presidency are health and safety in the workplace.

FISCAL DEFICIT

The Minister of Finance Vasos Shiarly says the government is committed to reducing fiscal deficit to 2.5% this year. Speaking to the press on April 26th the Minister said that any financial measures that need to be taken would be made after c o n s u l t a t i o n w i t h s o c i a l partners. Denying press reports about cutting the 13th salary paid in December, he said that he remains committed to cuts: ' ' o u r c r e d i b i l i t y i s v e r y important and we will stick to that figure without deviating in any way''.

I n f r a s t r u c t u r e a n d n e w technologies are top of the list o f C y p r u s ’ p r e s i d e n c y priorities, Communications and Works Minister Efthymios Flourentzos said during a press conference in Nicosia on April 6th. Flourentzos spoke of the need to re fo r m the EU maritime policy. With this in mind a conference will be convened at the coastal town of Limassol with Commission President Barroso on the guest list with the aim of adopting the ‘Limassol Declaration’. Transport and the EU Digital Agenda will be coupled with promoting the role of digital technology in the sustainable development of public transport. Transporting goods and passengers will be streamlined with new guidelines on the Trans-European Transport Networks. Social, financial and territorial cohesion throughout the regions of Europe is the aim of this project. The ministry will also hold a ‘European Road Safety Day’ devoted to youth.

Approaching Cyprus Presidency: Focus Areas

MONTHLY BULLETIN ISSUE 26 COVERING THE PERIOD 1-30 APRIL MAY 2012

IN BRIEF

ACCIDENT RESPONSE AT SEA

Cyprus and Germany carried out an aeronautical search and rescue exercise in the sea south of Cyprus on April 10th. Defence Minister Demetris Eliades noted that it was a success after the first trial with France in March. It involved a maritime accident response and leakage of oil in Cyprus’ Exclusive Economic Zone. Eliades said, “We must and can respond efficiently and reliably especially in view of the Cyprus EU presidency.”

Labour Minister Charalambous. Source: PIO

Communications Minister Flourentzos (centre). Source: PIO

RELATIONS WITH LIBYA

A ministerial delegation, visited Libya on 28-30 April. They met Deputy Prime Minister, Omar Abdal la Abdulkarim, and Foreign Minister Ashour Saad Bin Khayal and other Libyan o f fi c i a l s . T h e M i n i s t e r s d i s c u s s e d t h e f u r t h e r development of relations between Cyprus and Libya on various sectors including energy, trade, health and tour i sm. The min i s t e r ia l delegation was accompanied by a g r o u p o f e i g h t e e n businesspeople from the Cyprus Chamber of Commerce and Industry. The group comprised Fo r e i g n M i n i s t e r E r a t o Kozakou-Marcoullis, Minister of Commerce, Industry and Tourism Neoklis Sylikiotis and Health Minister Stavros Malas.

Cyprus could be a regional energy hub. Addressing the conference “Energy Security in the EU”, the Minister of Commerce, Industry and Tourism, Neoklis Sylikiotis said that Cyprus should become an integral part of EU plans for the development of a Trans-European energy infrastructure. The event held on April 2nd, was jointly organised with the European Parliament Office in Cyprus and Greece and the Ministry of Commerce, Industry and Tourism. Aiming to end energy isolation of the EU member states by 2015, a draft regulation was recently adopted to set out guidelines for the Trans-European energy network. Sylikiotis noted that the regulation sets out many energy corridors and priority zones, twelve of which have been prioritised and need to be completed by 2020. Cyprus will be included in two natural gas corridors and one electricity corridor. He noted that this would be one of the Cyprus presidency’s top issues. MEP Eleni Theocharous, also in attendance, spoke of raising an ‘energy shield’ around Cyprus to protect it from Turkey’s threats. She also spoke of making partnerships with other countries on energy matters. The goal is for Cyprus to become an indispensable energy provider for the EU, the MEP went on, adding that Nicosia would avert blackmailing practices by neighboring countries if it could assume this role in a credible manner. The government of Cyprus has protested to the UN and the EU about Turkey’s moves, saying it has a sovereign right to exploit its natural resources.

European Energy Independence

MONTHLY BULLETIN ISSUE 26 MAY 2012

FINANCE

At a press conference on April 25th, Finance Minister Vasos S h i a r l y, e x p r e s s e d h i s optimism for Cyprus’ EU presidency. He said that a basic aim for his Ministry will be the effective implementation of decisions in order to deal with the global crisis, the fiscal adjustments that need to be made, the consolidation of the banking sector, rescue funds for vulnerable economies and the promotion of growth and creation of jobs. He noted that his Ministry will deal with issues it ‘inherits’ from the Danes, the exact nature of which will become clearer towards the end of June combined with new initiatives e i t h e r C y p r u s o r t h e Commission undertakes.

ANDORRA

Bilateral relations and the Cyprus EU presidency were the main issues during the talks of the FM Kozakou-Marcoullis with her Andorran counterpart Gilbert Sunye on April 27th in Nicosia. Minister Marcoullis briefed the Andorran FM on the upcoming EU presidency stressing that “we discussed our cooperation and how we can find a new framework in EU-Andorra re lat ions” . The Andorran FM noted that “both Cyprus and Andorra are facing important challenges, you will face the EU presidency we will have the Council of Europe’s presidency in the following months and we can find some good ground of common interest to work together”.

E U R O P E A N C O M M I S S I O N DELEGATION COMES TO CYPRUS

The President of the Republic, Demetris

Christofias received a representation of the

European Commission under the Secretary

General, Catherine Day, on April 20th.

It was a visit scheduled as part of

preparations for the takeover of the

Presidency of the EU in July. The aim of the

visit was to facilitate talks with ministries

and prepare for the visit of the College of

Commissioners on July 5th and 6th. European Commission Secretary General Catherine Day with President Demetris Christofias. Source: PIO

Noble TalksNegotiations with US company Noble Energy on creating the infrastructure for gas drilling should be concluded within the next few weeks. Minister Sylikiotis announced on April 18th. He stressed that “our priority is to transfer reserves from Cyprus’ EEZ block 12” and reiterated that Noble has already claimed that it could bring natural gas to Cyprus by 2016. A report with all the relevant information for the government to make its final decision will follow. Noble carried out the drilling last December and discovered the large hydrocarbon reserve, which puts Cyprus on the energy map. The final decision on Noble should be taken in the next month, according to Sylikiotis, if not an interim solution will be found for transferring gas. The companies who are participating in the second round of licenses should be announced on May 11th. It is probable that new reserves will be found, stressed the Minister.

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MONTHLY BULLETIN ISSUE 25 APRIL 2012

Foreign Visits: Uzbekistan, Armenia and Kazakhstan

In Tashkent, the first ever bilateral agreement between Cyprus and Uzbekistan was signed on April 6th. At the invitation of Uzbeki Foreign Minister Abdulaziz Khafizovich, it was the first official visit of a Cypriot Minister. Cyprus Foreign Minister, Erato Kozakou-Marcoullis signed an agreement of cooperation on combatting crime, which entails working together on counter-terrorism, trafficking, illegal drug trade and money laundering. Another agreement was signed on cooperation in the area of public health and medical science. The visit was hailed as historic by Khafizovich and paved the way for beneficial bilateral relations.

Just one day before, on April 5th Marcoullis was in Armenia on a working visit. It was part of the implementation of a political declaration signed between the presidents of Cyprus and Armenia in 2011. The Armenian Foreign Minister Edward Nalbandian expressed his country’s firm support to Cyprus’ efforts to reach a fair and viable solution to the Cyprus issue. Armenia-Turkey relations and the Nagorno-Kakabakh issue were also broached in talks between the Foreign Ministers.

On April 3rd Kazakhstan welcomed Marcoullis. She was there to meet her counterparts to discuss topics of common interest. A protocol on cooperation between the Foreign Ministries as well as a Memorandum between Education Ministries were signed. The visit coincided with the 20th anniversary of the establishment of diplomatic relations between the two countries. While in the capital Astana, she met with the Finance Minister Bolat B. Zhamishev.

The EU Will Not Accept Turkish Threats To CyprusPolish Premier Donald Tusk, was in Cyprus on a state visit on April 18th to reiterate his support for Cyprus for its upcoming presidency of the EU. At a press conference Tusk stressed that the EU should not tolerate any Turkish threats against the Republic of Cyprus, since it will assume the EU presidency in the second half of 2012. He did express his w i s h f o r t a l k s t o continue to f ind a solution for Cyprus w h i c h h a s b e e n d i v i d e d s i n c e t h e Turkish invasion in 1974. He also stated that any actions on A n k a r a ’ s p a r t t o d e s t a b i l i s e C y p r u s would be considered a s a n a t t e m p t t o des tab i l i se the EU itself. Cypriot President Christofias made clear the Turkish threats to upgrade the occupied areas to statehood and freeze relations with the EU during the Cyprus presidency were unacceptable. He urged Turkey to abide by international law saying that to do otherwise would make the country unworthy of candidate status for membership of the EU. He continued by saying that efforts will be made during the Cyprus Presidency to bring Europe closer to its Southern Neighbours.

MONTHLY BULLETIN ISSUE 26 MAY 2012

President Christofias greets Polish Prime Minister Donald Tusk in Nicosia. Source: Cyprus News Agency

SHIPPING

On April 30th the Cyprus S h i p p i n g C h a m b e r h a s welcomed the ratification of t h e M a r i t i m e L a b o u r Convention 2006 through the I n t e r n a t i o n a l L a b o u r Organisat ion. I t inc ludes mechanisms that will allow the Flag State to effectively exercise its jurisdiction and control over ships that fly i ts flag by establ i shing a system for ensuring compliance with the r e q u i r e m e n t s o f t h e Convention, including regular inspections, reporting, and legal p r o c e e d i n g s u n d e r t h e applicable law.

CENTRAL BANK

President Demetris Christofias h a s a p p o i n t e d P a n i c o s Demetriades at the position of the Governor of the Central Bank of Cyprus for a five year term. Panicos Demetriades

is a Professor of Financial Economics at the University of L e i c e s t e r i n B r i t a i n . Demetriades, who will also represent Cyprus on the ECB's pol icy making Governing Council, succeeded Athanasios Orphanides, whose term ended on May 2.

EDUCATION

Two hundred scholarships will be on offer to Cyprus’ citizens following the signature of an agreement between Cyprus and China education ministers o n A p r i l 2 0 t h . C y p r u s E d u c a t i o n M i n i s t e r Demosthenous welcomed the news, and hoped that a similar agreement would be signed on mutual recognition of academic titles. The Minister said he would work towards enhancing Cyprus-China relations in the areas of education, culture, youth and sport.

Central Bank Governor Demetriades.Source: PIO

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MONTHLY BULLETIN ISSUE 25 APRIL 2012MONTHLY BULLETIN ISSUE 26 MAY 2012

I s r a e l - C y p r u s Relations Are At Their Best EverDuring an official three-day visit to Cyprus on April 17th, the Israeli Foreign Minister Avigdor Lieberman spoke of the g rowing re lat ionsh ip b e t w e e n t h e t w o countries. He met with the Minister of Commerce, Industry and Tourism Neoklis Sylikiotis and he was briefed on opportunities for further investment. Many bilateral projects between the two countries are underway in the areas of tourism, water resource management and energy.

On the discovery of hydrocarbons in Cyprus’ EEZ both the Israeli Foreign Minister and Cyprus Foreign Minister Kozakou-Marcoullis discussed the shared operation of development and exploitation of hydrocarbon deposits. Marcoullis noted that they were “in the final stages of negotiations on this agreement and soon we will have an opportunity to sign it”. Meeting with Finance Minister Vasos Shiarly, they discussed plans for an agreement on double taxation and protection of investment in hydrocarbon exploitation.

In relation to Turkish threats towards hydrocarbon exploitation Lieberman stated that “any threats are unacceptable behaviour in today’s international politics.” He also stressed that resolving these issues is only possible through direct talks “without any preconditions or prejudices.”

EIB President Visits NicosiaThe President of the European Investment Bank, Werner Hoyer paid a visit to Cyprus on April 27th at the invitation of Finance Minister Vasos Shiarly. Hoyer, who was received by President

Christofias underlined the importance of his visit due to the upcoming Cyprus Presidency of the EU. He emphasized the “very important” role of Cyprus in the international environment during his discussions with President Christofias. Hoyer also met the Minister of Foreign Affairs Kozakou-Marcoullis. They discussed the strengthening of the basis of the EIB fund, the contribution of the states to the fund, as well as the actual situation in the European bank sector. After meeting with the Minister of Commerce, Industry and Tourism Neoklis Sylikiotis, Hoyer announced the partnership of EIB and Cyprus for the development of energy projects. He underlined the ideal conditions in Cyprus, explaining that “this is a privileged part of the world where you can combine new technologies in energy with energies like gas thus providing a combination which will ensure supply security for many years and decades to come”. The Minister briefed Hoyer of Cyprus efforts to turn the island “into an important energy hub in the region”, contributing to European energy security.

MEDICINE

Cyprus wi l l be the on ly Mediterranean country to have ‘trauma archive’ where all medical actions taken to treat injuries will be recorded from the moment the patient is picked up. The cost of injuries in the EU is 280 billion euros per year. Death from injuries once the patient arrived in hospital were preventable in 30% of the cases. At a press point on April 19th, Minister of Health Stavros Malas said that the system would include a Level I Trauma Centre at the Nicosia General Hospital and would lead to a 25% decrease in multiple injury fatalities.

DAM OVERFLOW

Cyprus’ largest dam, Kouris, suffered its second overflow

since it was constructed in 1988. On April 7, the dam, with a capacity of 115 million cubic metres, located northwest of the southern town of Limassol was breached. The Cyprus Water Development Department acted to control the outflow to help enrich the aquifer of Akrotiri on the southern coast.

Kouris Dam. Source: PIO

PIRACY

A draft anti-piracy law was adopted by the Cabinet on A p r i l 2 1 s t . I t i m p r ov e s protection of Cypriot vessels by providing armed escorts. The Cyprus Shipping Chamber welcomed the news, and noted that it may put an end to the ‘gangrene’ of piracy affecting Cyprus shipping. Piracy costs around 7 billion US dollars per year according to the IMO. A coordinated response was n e e d e d . C o m mu n i c a t i o n Minister Flourentzos said that it regulates the provision of armed escorts to Cyprus-flagged vessels, by specially trained and certified guards.

European Investment Bank President Werner Hoyer and Foreign Minister Marcoullis. Source: PIO

Israeli Foreign Minister Lieberman and President Christofias share a lighter moment during an official visit this April. Source: Cyprus News

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MONTHLY BULLETIN ISSUE 25 APRIL 2012MONTHLY BULLETIN ISSUE 26 MAY 2012

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Type to enter textENERGY MEETING IN DENMARK

At the Informal Council of EU Energy Ministers in Horsens, Denmark on April 20th, Commerce and Industry Minister Neoklis Sylikiotis agreed with the EU Energy roadmap 2050. A new Energy Efficiency Directive was also subject to discussion. It aims to reduce energy consumption by 20% by 2020. Sylikiotis expressed the support of Cyprus to D e n m a r k ’s e f f o r t s t o c o n c l u d e negotiations by the end of June, and assured the Cyprus Presidency was ready to pick up the dossier if the negotiations were still ongoing.

No Prospect of International ConferenceThe prospects of having an international conference on the Cyprus

problem are not favourable, Government Spokesman Stephanou said on

April 28th, adding that the issue of changing the UN-led current process of

negotiations aiming at a settlement of the problem, has not been brought

up either by the UN SG Ban Ki-moon or his Special Advisor Downer,

during a meeting the latter had on April 27th with President Christofias.

Stephanou said it was obvious that the unresolved problems are not the

result of the process followed or of the agreed basis for a settlement, but of

the Turkish side’s position. He said that President Christofias has assured

the UN SG of his readiness to continue to negotiate during the period in

which Cyprus will hold the EU presidency, in consistence to the agreed

basis for a solution, providing for a bizonal, bicommunal federation with

political equality, as provided by the UN resolutions.

As regards the issue of an international conference, the Spokesman

stressed that the UN position on this issue is that such a conference can be

convened to discuss the international aspects of the problem, when an

agreement on the internal aspects is reached. “Unfortunately this prospect

is unfavourable given the current situation,” he said adding that the

Turkish side must abandon its delaying tactics. He added that the Turkish

side must respect the commitments it has undertaken and which it has

failed to meet and cooperate for a solution. Stephanou also noted that the UN adopted a concrete position as regards the issue of when it will be

possible for a conference to be convened, recalling the UN Security

Council resolution 2026 which explicitly refers to this issue. Asked about

the shuttle diplomacy between the two parties which the UN is

undertaking in the following period, Stephanou said that the UN efforts

will continue to reach convergences.

RUSSIA

The Russian Foreign Ministry urges citizens to refrain from buying property in Turkish occupied areas of Cyprus. On April 9th, Deputy Director of the Press and Information Department Maria Zacharova said that buying a property in this area is illegal as the properties belong to Greek Cypriots who fled following the Turkish invasion in 1974. Her guidance was that “the property market is at great risk because of legal lawsuits filed by the owners.” She also explains that under the Criminal Code of Cyprus buying any property without the consent of the legal owner, is fraud and punishable by imprisonment for seven years.

Informal Council of Energy Ministers meeting in Horsens, Denmark April 20th. Source: Danish Presidency

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