Front Page Headlines
Government ‘red light’ on political haggling
Everything is possible, even rejection of the state budget for 2021 because of (Auditor-general) Odysseas. DIKO’S decision to reject the state budget “if the government continues to refuse to give the Audit Office copies of the files on naturalisations,” shapes an unprecedented political environment. At present, the situation seems to be at an impasse and for the numbers necessary to approve the budget, the government will have to deal also with ELAM, perhaps the most serious side effect of DIKO’s political plans. There are voices within the government camp that consider it politically more beneficial for the government not to enter into the logic of bargaining with the other parties, for the budget to be finally rejected and for everyone to assume their responsibilities.
- Athens-Nicosia on the same page on developments on the Cyprus problem
- EU: ‘Family’ spat over Turkey
- Politicians carrying firearms: Since she (justice minister) didn’t know why she didn’t ask
Difficulties at the Law Office
They are still studying the pros and cons on how to handle (Auditor-general) Odysseas Michaelides’ case. They are assessing the risks concerning the three choices before them.
- (Greek FM Dendias) Turkey’s belated moves are not convincing
- The UN is looking for a restart formula
- Documents from the Republic of Cyprus’ 60-year history – The history, the upward course, the achievements, the future. A parallel course with Phileleftheros (article on the release on Sunday of a commemorative book on the RoC, to mark Phileleftheros’ 65th anniversary)
DISY is seeking allies for the (state) budget
DIKO’s insistence it will reject the budget unless information on the golden passport is given to the auditor-general, has agitated the government which launched backstage consultations ahead of the vote on the state budget. Ruling DISY is trying to convince EDEK, ELAM and the three MPs that left DIKO to secure a majority vote.
- The ‘27’ are assessing Turkey’s moves
- TCs in favour of a federal solution are joining forces
‘End cat and mouse game’
EU Council chief Michel warns Turkey ahead of crucial summit, Dendias in Cyprus.
Sanctions on Turkey from two fronts: US-EU
Bill in the US on obligatory sanctions within 30 days. Μitsotakis: It is not possible for Turkey to avoid consequences. Dendias-Christodoulides: The ball is now in Turkey’s court. Michel: The cat and mouse game must end.
- They are arguing in the occupied areas over the federation and two states
- Unremorseful: Erdogan wishes France to be soon rid of Macron
Main News
Michel: No significant positive move by Turkey ahead of EUCO
Alithia, Cyprus Mail, Haravgi, Phileleftheros, Politis
EU Matters, Negotiations Process, Regional/International Relations, External Security
OVERVIEW
The papers report that Greek Foreign Minister Nikos Dendias said on Friday after a meeting in Nicosia with his Cypriot counterpart Nikos Christodoulides, that Turkey’s belated moves for de-escalation of tensions in the Eastern Mediterranean are not convincing.
According to the papers, Dendias said it was for that reason that it was necessary for the EU to take decisions that will lead Turkey towards real de-escalation and to a constructive dialogue on the only acceptable basis, that of international law and the Law of the Sea.
These decisions are important also as proof of EU reliability, he said.
Dendias also said that his visit to Nicosia takes place during a truly crucial moment both for Hellenism and Europe in general, adding that the provocative Turkish behaviour negatively affects peace, security and stability. Turkey is trying on the one hand to create a fait accompli and on the other to prevent measures against her, he added.
He noted that the European Council (EUCO) last October gave Turkey the opportunity to de-escalate its actions in the Eastern Mediterranean and the broader region with a view to create a positive agenda on Turkey. Unfortunately, he said, Turkey did the exact opposite and issued within a period of a few weeks six illegal NAVTEX for seismic research in an area of the Greek continental shelf.
Moreover, he added, Ankara acted absolutely provocatively with the so-called picnic of Turkish President Recep Tayyip Erdogan in Varosha and issued an illegal NAVTEX for research within a sea area that includes the Cypriot EEZ.
Christodoulides said that the ball is now in Turkey’s court as any decisions are dependent on Ankara’s behaviour. He said the EU leaders, after evaluating Ankara’s behaviour, will take the relevant decisions. He said that the EU needed to be consistent, decisive and reliable, and claim at the same time a leading role in issues which have to do with the sovereignty and the sovereign rights of member states, something which undoubtedly affects the European interests.
On the Cyprus issue, Dendias said it continues to be a top priority of Greek foreign policy and that Athens was ready to participate in the informal five-party meeting to be convened by the UNSG.
Dendias said that they also underlined once again that a comprehensive, just and viable settlement of the Cyprus problem must be found, “but this can only be done on the basis of the Security Council decisions and of the EU acquis.”
Christodoulides said that public statements both by Turkey and the TC leader, Ersin Tatar, about the need to change the sought-after solution are outside the agreed and internationally accepted framework and cannot be accepted in any case.
He said that the role of the EU, of which the Republic of Cyprus is a member state, towards this direction is and will continue to be decisive also after a Cyprus settlement. Christodoulides said that the coming period is of decisive importance as to how things will evolve both as regards prospects for the resumption of the Cyprus problem talks and the future of the EU-Turkey relations.
The dailies also report that European Council President Charles Michel on Friday confirmed the 27 EU leaders will assess Turkey’s actions, underlining the EU preference for a more stable and predictable relationship.
Speaking during a press conference marking his one year in office, Michel said he preferred dialogue when it comes to conflicts and differences of opinion.
According to Michel, the bloc unanimously wants and needs a more stable and more predictable relationship with Turkey, but it takes two to tango. “So, we need to work together to have that predictable relationship and we are going to make use of channels,” he stressed.
Pointing to the decision taken at the European Council in October, Michel said that “we took a position which was very clear”, with unity in the EU, providing that “the end of the year we would make an assessment. In October we extended the hand and we see what Turkey has done over that period of time, so we need to define what that’s going to mean, within the context of the European Council,” he added.
Answering a question on Turkey, Michel said “the cat and mouse game needs to end,” adding that in October after a very dense and strategic high level exchange the EU leaders defined a very positive offer to Turkey but that Turkey needs to stop unilateral provocations, hostile statements and non-respect of international principles and rules-based order.
Since October, he said, things have not been very positive, since there have been unilateral acts while hostile rhetoric has been expressed.
“We see that there has not been a significant positive movement with Turkey and that’s an issue,” he said, according to the papers.
Phileleftheros also reports that the German presidency of the European Council (EUCO) wants discussion and not sanctions. The daily cites German government spokesperson Steffen Seibert saying that the EUCO does not decide on sanctions since in the EU a legal procedure is provided as regards sanctions. The EU agreed to deal with Turkey again in December, he said, according to the paper.
Alithia, in its main item, reports that Erdogan’s extreme policy has put Turkey in the grind of both the US and the EU as the latest development and statements by European and American officials show that Europe and the US’s patience has run out and that sanctions on Ankara are a matter of days.
The daily cites Michel’s statements but also the fact that the US National Defence Authorisation Act for Fiscal Year 2021 (NDAA) provides for sanctions on Turkey for the acquisition of the Russian S-400 system. The bill states that the acquisition of the S-400 constitutes a significant transaction and calls for the implementation of the provisions of the Countering America’s Adversaries Through Sanctions Act (CAATSA) and for five or more of the sanctions described in section 235 of the CAATSA, not later than 30 days after the date of the enactment of the NDAA.
KEY ACTORS
Dendias (Greece)
>> Turkey’s late moves for de-escalation are not convincing anyone thus the EU must make Ankara truly deescalate & engage in constructive dialogue based on international law and the Law of the Sea. This will also be a proof of the EU’s reliability.
>> Turkey’s provocative behaviour negatively affects peace, security and stability.
>> Turkey is trying on one hand to create fait accompli in the region & on the other to prevent measures against her.
>> Turkey made the exact opposite of what EUCO asked her by issuing illegal Navtex messages for seismic research in Greek continental shelf & Cypriot EEZ and actions on Varosha.
>> The Cyprob, whose solution should be based on SC decisions & the EU acquis, remains a top priority of the Greek foreign policy.
Christodoulides (RoC)
>> Given that the EUCO will make decisions based on Ankara’s actions, it is up to her how her relations with the EU will be shaped.
>> The EU must be consistent, decisive, reliable & claim a leading role in issues which have to do with the sovereignty and sovereign rights of member states, which affects the European interests.
>> Turkey’s and Tatar’s public statements about an alternative solution outside the agreed & internationally accepted framework cannot be accepted.
>> The coming period will shape how things evolve both as regards prospects for the resumption of the Cyprob & the future of the EU-Turkey relations.
Michel (EUCO)
>> The EU wants & needs a more stable and more predictable relationship with Turkey, but Ankara needs to also do its own bit for that.
>> EUCO was very clear on what it expected from Turkey but there has not been a significant positive movement since Ankara continued unilateral provocations, hostile statements & defied international principles and rules-based order.
‘High tax on tobacco encourages smuggling from north’
Alithia
Economy, CBMS, Internal Security
OVERVIEW
The daily hosts an article by Zacharias Manitaras, an official of the Cyprus Chamber of Commerce and Industry (CCCI) on the negative impact of smuggling of cigarettes and other tobacco products from the north, encouraged by the high taxation imposed by the government.
According to Manitaras, after the government raised taxes on these products in 2012, a large smuggling ring was organised, bringing cigarettes and tobacco from the occupied areas to the Republic. He said prior to 2012, there was no smuggling, arguing that the government’s move proved to be wrong.
The tax on ready-made cigarettes increased by 110%, pushing the price to €121 per one thousand, while at the same time the tax on tobacco increased by 250%, from €60 per kilo in 2012 to €150 today.
The ineffectiveness of this excessive increase, he said, was evident in the tax and VAT collected on these products. In 2012 €213m was collected while in 2019 only €175m was collected in taxes, a more than 22% drop, he said.
He added that this reduction is abnormally large compared to the estimated 2% to 3% of smokers who quit annually.
At the same time, the tax increases have inevitably led to large price increases that have had a detrimental effect on the tobacco industry since hundreds of kiosks, whose more than 50% of turnover comes from tobacco products, closed down. It has also led to a reduction in jobs.
At the same time, he said, smuggling both through the occupied areas and other ‘underground’ routes is rampant due to the huge difference in the price of tobacco, since in the occupied areas the taxes are much lower. The continuing fall of the Turkish lira against the euro as a result reduces the cost of their retail sale, he added.
According to Nielsen’s ‘empty cigarettes packs survey’ carried out every year in Cyprus, the percentage of non-taxed tobacco products continues to be high. In 2019 it rose to 16.2%, marking a significant increase compared to 2018 which was at 9.9%, while in 2020 it seems to be declining, due to the restrictive measures due to the pandemic, Manitaras said.
Tobacco in the north has a retail price of €3, while in the Republic it costs €7 which is more than double. Respectively, a pack of cigarettes or a pack of heated tobacco sticks costs €2 in the north and €4 in the south.
Most quantities, he said, pass to the Republic of Cyprus through ‘blind spots’ bordering the occupied territories. This can be easily ascertained considering that the largest confiscations made by Customs were not at the crossing points but after tip-offs when the products are already in the free areas, he said.
Manitaras also argued that the risk for smugglers is very small in relation to their huge profit margin, since, if they are caught by Customs, their smuggled tobacco products will be confiscated, they will be given an out-of-court fine and they will be released.
He said that CCCI has been calling for harsher penalties such as immediate revocation of the permit to sell tobacco products in cases shops are found to sell illegal product, but also a significant drop on the tax imposed on these products.