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)

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cyprus Economy, Sectoral Economies, Financial Sector, Labour Market
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; G - Financial Economics > G0 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

References

Theophanous A. and Tirkides Y. (Eds), Accession to the Eurozone and the Reunification of the Cyprus Economy, Inercollege Press, Nicosia 2006. Christodoulou D., Inside the Cyprus Miracle, Modern Greek Studies, University of Minnesota, Minneapolis, 1992. Theophanous A., "The Anatomy of the Economic 'Miracle' 1974-1994" (in Greek), in Peristianis N. and Tsangaras G. (Eds) Anatomy of Metamorphosis (in Greek), Intercollege Press, Nicosia 1995, pp. 13-33. Ministry of Finance, Republic of Cyprus, "The Economy in the Occupied Part of Cyprus: An Assessment", Nicosia, June 2006. Noe W. and Watson M., "Convergence and Reunification in Cyprus: Scope for a Virtuous Circle", ECFIN Country Focus, vol.2, no.3, 2005, pp. 1-7. Watson M. and Herzberg V., Wolfson Cyprus Group Conference, "Sustainable Economic Development in Cyprus: Towards Economic Convergence and Reunification - The Case of the Northern Part of Cyprus (Macroeconomic and Financial Frameworks)", May 2005, pp. 1-21. Bahceli S., "Census reveals soaring population in north", The Cyprus Mail, 7 May 2006. Donhanyi von K. and Most E., "Fur eine Kurskorrektur des Aufbau-Ost" in Der Spiegel, 10 February 2004 [www.spiegel.de/media/0,4906,4026,00.pdf] Theophanous A., European Cyprus: Constitutional Structure Economy and Society. Accession and the Solution Scenaria (in Greek), I. Sideris, Athens 2002. Ministry of Finance, Cyprus, Convergence Programme of the Republic of Cyprus 2004-2008.