Another stakeholder mentioned that trade with Turkey would also benefit Cyprus and the region greatly. Beyond this, however, the broader theme of economic synergies that may otherwise lead to gain in trade or income was not developed in panel deliberations. 15
«Tthe Turkish-Cypriot community opens, for the GreekCypriot community, the route to the turkish market, which is a vast market. It is developing and very promising. And Cyprus is ideally positioned to be the bridge for Turkey’s European union transactions». Αnastasios Αntoniou, Αdvocate
Economic convergence and asymmetry between the two sides The Greek Cypriot economy is far more developed than its Turkish Cypriot counterpart, whether measured in terms of GDP per capita or through other conventional yardsticks. Thus, reunification presumes the likelihood of successful macro-economic convergence. In recent years there is some evidence that despite the failure of the 2004 reunification referenda, the income gap has been slowly closing (i.e. there is partial labor market convergence) with investments in northern Cyprus and the EU’s mandate to prepare for reunification by contributing to the development and competitiveness of the Turkish Cypriot economy. However, the gap remains significant. For some stakeholders, it is this economic disparity that looms larger than any concerns regarding the governance chapter. The Greek Cypriot economic system is much more structured, with a stronger private sector and competition policies. GDP per income is twice as much in the southern part of Cyprus than it is in the northern part. The Greek Cypriot labour market is more attractive to Turkish Cypriots since wages are also higher. In addition, Cyprus has been an EU member state since 2004 and the GC companies have already adapted themselves to doing business in an EU regulated environment. On the other hand the Turkish Cypriot economy mostly revolves around the public sector with a weak private and financial sector. There is very limited contact with the European market, often in the form of imports. This situation creates concerns for both communities. Moreover, Turkish Cypriots attribute much of the disparity to the Cyprus problem whereby the Turkish Cypriot isolation serves to deter investment and trade. Greek Cypriots tend to worry that being more the economically advantageous partner they will have to bear the costs of reunification/convergence. Even if the international community offers some funds to cover some major costs - such as for those related to compensation for SOLVING THE CYPRUS PROBLEM: HOPES AND FEARS Ι Cyprus 2015
«It is as equally a big mistake as not wanting a solution to go for a solution that we don’t know with what funds we are going to be able to make it work because we are living in a very difficult financial environment. If we do, we risk ruining what we have created here in our community, which is an economically strong state. So we need to know from the beginning what funds we need to finance the settlement and where they are going to come from». Greek Cypriot stakeholder panel participant 59