North Cyprus should adopt Euro concurrently as the Republic of Cyprus joins the European Monetary Union and start using Euro.
EU member States, who fulfil the Maastricht criteria, join the European Monetary Union (Eurozone) and start using Europe’s single currency, Euro. As of 1 January 2008, The Republic of Cyprus will abandon Cyprus Pounds and adopt Euro instead.
North Cyprus should convert its currency to Euro concurrently.
Benefits of using a consistent currency in north Cyprus have been debated widely where there is a social accord in this respect. In May 1983, Turkish Lira has replaced Cyprus pound which was until then the official currency in north Cyprus. From then onwards, fiscal and economic inconsistencies, high inflation rates and devaluation occurrences in Turkish economy was carried over to north Cyprus and consequently Turkish Cypriots have paid heavy economic prices.
Political deadlock provides enough inconsistencies.
All the economic sectors are already being affected negatively because of the protracted Cyprus problem. It would only be possible to eliminate the fluctuations in the economic and political conjecture and their negative effects on north Cyprus by adopting the Euro.
Presidential declarations do not reflect the real situation.
Spokesman of the presidency, Mr. Hasan Ercakica claimed that “Adoption of Euro in south Cyprus will make the division in Cyprus permanent. This matter will further estrange Turkish Cypriots from the EU, both economically and politically, as the EU has not negotiated the issue with Turkish Cypriot representatives.”
Republic of Cyprus, a member state will start using Euros as it has fulfilled the Maastricht criteria. Besides being irrational, claiming that EU needs to negotiate the issue with Turkish Cypriot representatives only insinuates reluctance towards understanding the EU. If the presidency’s concern regarding deepening of the division and estrangement from the EU is genuine, island-wide solid steps need to be taken towards integration with the EU and by adopting Euro concurrently in north Cyprus instead of factitious assertions.
Prime Minister’s remarks are misleading.
In response to “adoption of Euro” demands from civil society organisations and the economic intelligentsia for many months and years, Prime Minister Soyer, claimed that we do not have the necessary fiscal discipline to fulfil the Maastricht Criteria, thus we cannot adopt Euro as our currency.
This is either an absolutely wrong perception or a conscious aberration, and this demeanour needs to be eliminated. Without solving the Cyprus problem, it’s not possible for north Cyprus to be a part of the European Monetary Union, unlike the Republic of Cyprus. Furthermore, adoption of Euro unilaterally for economic advantages by acting on one's own initiative is not inter-pertinent with the Maastricht Criteria. For example, non-EU member Kosovo and Montenegro have adopted Euro on their own account.
There are no practical obstacles for such an initiative.
If Euro is adopted concurrently, Turkish Lira would still be used in the market just like Cyprus Pounds, Sterling, Dollar and Euro are being used today. What is missing is, not practicality but only political will. One should not give inconsistent excuses to prevent the correct understanding of the current situation.
In summary; what is expected of the CTP authorities, who were advocating a stable currency while in opposition, is to remember and keep to their promises. If the fact exists that we cannot adopt Euro without Turkey’s consent because she remedies our budgetary deficit, then this should be communicated to the public. The fact is that the political deadlock lays at the root of precedent economic crisis is trying to be concealed from the public. If the reasons for misleading declarations are absence of the political will, and that such will is held by Turkey, the public needs to be correctly informed.
In conclusion, the course of the Republic of Cyprus and the EU relations are proceeding normally, and as Republic of Cyprus fulfils the criteria and complies with the EU directives, she will be included in all EU functions. The existing problems in Cyprus can only be overcome by; building a bi-zonal bi-communal federation as soon as possible on the grounds created by reclaiming the rights of Turkish Cypriots in the 1960 Republic of Cyprus Constitution. In the meantime, our primary objective should be improving the economical and democratic quality of Turkish Cypriots’ lives.
In this context, harmonisation with the EU laws within north Cyprus, and infrastructural reforms should gain impetus. In parallel to this, concurrent adoption with south Cyprus of Euro as the official currency in 1 January 2008, would be a common economic acumen and a felicitous decision which will benefit Turkish Cypriots.
Cyprus EU Association