Cyprus was one of the ten countries that joined the European Union on 1 May 2004. Padil Ersojer EU membership has brought clear benefits to Cyprus, but Turkish Cypriots in the north of the island are still largely excluded from all the benefits of membership, he explains.
Cyprus’s entry into the EU on May 1, 2004, along with nine other countries, was a historic moment, marked by rhetoric about “reuniting Europe” and “ending the Cold War divide.” But the milestone was overshadowed by the island’s admission as a de facto divided nation, freezing its long-standing conflict.
This irregular enlargement has led to the suspension of EU law in the north, restrictions on EU engagement with the Turkish Cypriot community, and significant imbalances in the island’s EU path. Over the past two decades, the Republic of Cyprus, led by the Greek Cypriots in the south, has experienced rapid development and economic growth despite challenges such as financial crises and increased insecurity.
However, while Turkish Cypriots individually benefit from EU citizenship, the internationally isolated northern part, led by Turkish Cypriots, has been largely excluded from all the benefits of EU membership and representation in EU institutions, and has been marginalized over time. Despite numerous efforts to resolve the conflict and integrate the island before and after accession, the divisions have persisted, entrenching political divisions. They have also deepened economic disparities, complicating the overall narrative of EU membership as a unifying force.
Cyprus in the EU
Over the past 20 years, the Republic of Cyprus has benefited from its EU membership, experiencing strong economic performance with annual growth rates of 4% and a six-fold increase in trade. As a member state, it has received significant investment to bring its growth and incomes up to the EU average.
For example, the EU has provided €1.7 billion under the Cohesion Policy from 2004 to 2020 and €98 million under the Juncker Plan. During this period, there have been significant changes, including infrastructure development, public sector modernization, and research and innovation advancement. Cyprus has become an attractive destination for investors and companies, and EU accession has benefited all sectors of life, from health to agriculture, tourism and fisheries.
In the early years of accession, there was widespread enthusiasm and optimism among Greek Cypriots, with around 54% supporting the EU. However, the financial and banking crisis of the late 2000s brought significant hardships and shattered the previously positive narrative.
The Republic of Cyprus underwent an economic adjustment program imposed by the EU and the IMF from 2013 to 2016, which included strict austerity measures in areas such as public administration and taxation. These measures were intended to restore financial stability and promote sustainable economic growth, but they created widespread frustration among many Cypriots. During that period, support for the EU plummeted to 13%, and the EU was stripped of its legitimacy in the Cypriot media.
Despite these setbacks, the legacy of the financial crisis served as a touchstone for Greek Cypriots’ commitment to European integration. Since the end of Troika oversight in 2016, Greek Cypriots have shifted to a state of “soft Euroscepticism,” characterized by criticism of specific EU policies rather than the European project as a whole. Despite previous opposition, 82% of Greek Cypriots supported eurozone participation in 2019. During this period, the Republic of Cyprus has continued to receive EU funding, including €150.8 million under the EU research and innovation programme Horizon 2020. These efforts have helped the EU to revive its appeal to the Greek Cypriot community, increasing public trust to 54% by 2019.
EU funds
The Republic of Cyprus has continued to benefit from significant EU support during the COVID-19 pandemic and the energy crisis. The country has received significant funding, including a €603 million loan for the Temporary Wage Subsidy Scheme (SURE Instrument), €112 million in 2021 under REACT-EU, and €92 million from the Just Transition Fund in 2021. These funds were aimed at mitigating the impact of the pandemic and supporting the green and digital economy.
In addition, the NextGenerationEU programme under the long-term EU budget for Cyprus (2021-2027) allocates €1 billion in grants and €1.5 billion in loans across a range of sectors, focusing on economic and social resilience, green and digital transitions, and solving common European challenges. In addition, the REPowerEU initiative aims to diversify the EU’s energy sources and reduce its energy dependence on Russia following Russia’s invasion of Ukraine. It funds ambitious energy projects, including €100 million for the EuroAsia Interconnector project, designed to connect Cyprus, Crete and Israel to the EU electricity grid and boost renewable energy production.
In light of planned investments, the Greek Cypriot economy is expected to grow in the coming years, the labour market is strong and unemployment is declining. However, although Greek Cypriot GDP grew by 31% between 2003 and 2018, it still lags the EU average, standing at €33,400 in 2022 compared to the EU average of €35,500. Euroscepticism is also high, with only 39% supporting the EU in 2023, compared to the EU average of 47%.
Cyprus also faces wider problems such as corruption, money laundering and lack of transparency in the public sector and banking system, complicating its relationship with the EU. According to a 2022 Eurobarometer survey, 94% of Cypriots believe corruption is widespread in the country, significantly higher than the EU average of 68%. Cyprus ranks 49th in Transparency International’s 2023 Corruption Perceptions Index (CPI).Day It is one of 180 countries. In this context, the country is criticized for being a tax haven and a gateway for shady financial transactions, Russian money flowing into the country, the use of front companies for illegal activities and the “selling” of EU citizenship through investments.
Turkish Cypriot representative
Since its accession to the EU, the Republic of Cyprus has had a significant influence on European policies and initiatives, but it has not always been cooperative. For example, the EU was determined to “end the isolation of the Turkish Cypriot community” by endorsing the UN-sponsored Annan Plan in 2004. However, the Republic of Cyprus has blocked proposals such as “direct trade regulations”, claiming that this would legalize the “illegal state” in the north.
To address some of these challenges, the EU launched the EU Support Programme for the Turkish Cypriot Community in 2006 to provide financial and technical assistance for economic and social development, and to promote the island’s economic integration and future reunification.
These efforts have partially improved living conditions in the north, but they are not comparable to the changes experienced in the south. The EU’s failure to distribute the benefits of membership more equitably has damaged its image in the north. Nevertheless, the EU has become an important element in Turkish Cypriot political life, and continues to provide a framework for reunification, and many Turkish Cypriots see their future within the EU.
A notable development occurred in the 2019 European Parliament elections, when Niyazi Kiziliurek, the Turkish Cypriot candidate for the Greek Cypriot Communist Party AKEL, was elected. This was a positive step towards Turkish Cypriot representation in EU institutions, but the June 2024 European Parliament elections were a setback. Neither Kiziliurek nor the other two Turkish Cypriot candidates were elected, weakening the Turkish Cypriot voice in the European Parliament.
Apolitical YouTube pranksters Fidias (19.4%) and far-right ELAM (11%) swung the Greek Cypriot vote and won seats in the European Parliament, a trend that mirrors the rest of Europe. As a result, AKEL lost one of its two MEPs (22%), the socialist Greek Cypriot nationalist EDEK lost one seat, the center-right DISY (25%) retained two seats, and the centrist DIKO (10%) retained one seat.
Turkish Cypriots also had an exceptionally low turnout of 5.5%, which did not have the expected impact on the results. This is because many Turkish Cypriots see the elections, held only in the south, as unrepresentative or irrelevant to their lives. They demanded that two of Cyprus’ six seats in the European Parliament be allocated to ensure fair representation.
The EU as a foreign policy amplifier for Cyprus
EU accession also gave the Republic of Cyprus a veto on EU enlargement, creating challenges for Turkey’s accession. The Cyprus issue has become a key factor in Turkey-EU relations and has been a condition for accession. When Turkey refused to formally recognize the Republic of Cyprus and open its ports, the European Council decided in December 2006 to freeze eight chapters of the accession talks, showing the impact of Cyprus’ EU accession on European integration.
The Republic of Cyprus has also developed regional cooperation initiatives to expand its foreign policy priorities and to address tensions with Turkey over Turkey’s objection to its “exclusive economic zone” in the disputed waters of the Eastern Mediterranean. These initiatives include the EU Med Group (Med-9), a group of nine EU countries bordering the Mediterranean, and the EastMed Gas Forum, a regional cooperation initiative on energy and security.
Looking back on 20 years of membership
EU membership has brought significant benefits and challenges to Cyprus. The EU’s influence and image in Cyprus has not always been uniformly positive. However, it varies depending on political and economic developments and the EU’s ability to deliver on its promises, as seen in the strict austerity measures and the exclusion of Turkish Cypriots.
EU membership does not mean the end of political and economic change, as it can require costly reforms in difficult times. EU membership is not a panacea for all problems, as evidenced by widespread corruption in Cyprus and the island’s persistent division between the north and the south. Instead, it serves as a platform for guidance, learning, and cooperation on common issues.
It is therefore important for Cyprus to work with the EU to address persistent issues, strengthen its position within the EU, avoid marginalization and maintain its commitment to European integration. Furthermore, the experience of Cyprus shows that a careful EU enlargement process is needed to overcome the limitations of EU institutions and initiatives. Reinventing EU enlargement policy is essential to strengthening the EU’s agency in an increasingly aggressive and conflict-ridden global environment.
This article is part of a series organized by Eli Gateva. Rethinking Europe’s East-West Divide – 20 Years After the Big Bang
Note: This article presents the views of the author and does not necessarily reflect the position of EUROPP (European Politics and Policy) or the London School of Economics. Source of featured image: Lalalalolol / Shutterstock.com
