Munich Personal RePEc Archive

Cyprus Accession to the Eurozone and the Reunification of the Island's Economy

Theophanous, Andreas and Tirkides, Yiannis and Pelagidis, Theodore (2008): Cyprus Accession to the Eurozone and the Reunification of the Island's Economy. Published in: SudostEuropa Mitteilungen , Vol. 48, No. 1 (2008)

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This paper addresses issues pertaining to the accession of Cyprus to the Eurozone and the reunification of the economy of this island-state. Within this framework the performance of the economy of Cyprus, both in the government-controlled areas and in the occupied northern part,1 are examined. We also examine the conditions for successful participation in the Eurozone following the introduction of the euro in January 2008, and evaluate the progress toward real convergence. Particular attention is given to the German experience of reunification, with a view to drawing relevant and useful lessons for Cyprus, as well as to issues of political economy pertaining to accession to the Eurozone and the challenge of reunification. The last section summarizes the main points, makes policy recommendations and suggestions for further research.

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