About Cyprus

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Cyprus and the EU

Cyprus joined the European Union on 1st May 2004. The European Commission has focused understandably with the UN on resolving the 'Cyprus' problem; the North and South divide. The first example of progress on this is that people in the South can now cross over the border to the North for short term stays.

A 2004 referendum to re-unite the island failed, partly because of the lack of clarity on property rights and other economic policies, not least being the cost to the tax-payer of building the infrastructure needed in the North to catch up with the South.

We could dedicate pages to this on the site, but our best guess is that with growing support for Turkey to join the EU, there will be a Federation (economic at least) by 2010. After that, we believe that emerging democracy and a "lesser faire" economy will do the rest to unite the island in the fullness of time. The fact is that now Cyprus is a EU member country, it is afforded a high level of level confidence and security.

Southern Cyprus will we believe join the Euro in 2007 or 2008. Assuming this, there may be a devaluation by perhaps as much as 10% of the CYP £ in 2005 or 2006. Once Cyprus is in the Euro zone, we believe property prices will increase rapidly by as much as 30% to catch up with Spain and Portugal. The economy is likely to boom at the same time as Cyprus receives its share of EU support and levels of commercial trading and funding increase - particularly with regard to its oil reserves. Cyprus will in time derive great benefit from membership of the EU in terms of political, economic, social and environmental advantages.

It is not difficult to see that Cyprus, situated at the cross roads of three continents, could well become the EU's "Switzerland in the sun", by 2010. As an island with a finite supply of land, this bodes well for property investors, residents and visitors. It would seem to be well protected from economic recession in comparison to many other EU countries.

Cyprus is also a member of the United Nations, the Council of Europe, the British Commonwealth and the Non-Aligned Movement.