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Pyla agreement for joint development a hopeful sign, says Stewart

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The UN-mediated agreement in Cyprus for joint development in Pyla is a hopeful sign that other difficult issues could be approached with the same constructive attitude, Special Representative of the Secretary-General Colin Stewart said on Tuesday.

According to an understanding that has been reached for Pyla, a single urban development area will be created, which will ensure the harmonious coexistence of Greek Cypriots and Turkish Cypriots in the area and, will include, among other things, a large area of residential development, the paving of a road leading towards Troulloi village, the creation of photovoltaic parks and the expansion of the urban use area of the village.

Addressing the 19th Economist summit in Nicosia, in a panel on the importance of the two sides in Cyprus working together, Stewart, who is also the Head of UNFICYP said that there is a growing recognition that the status quo is not static, that as long as the Cyprus issue is not resolved, tensions will persist. He also said promoting trade would strengthen integration between the sides of the island, and strengthen interdependence between the communities.

He also said that there appears to be a consensus around the appointment of a United Nations envoy for Cyprus and this too is a hopeful sign.

Replying to a comment, during a debate that followed his speech, whether a Cyprus solution becomes more difficult as time passes by, Stewart said it is becoming “definitely harder.”

The next year is the 60th anniversary of UNFICYP in Cyprus, he went on. Not only does the problem become harder to solve, but “we may soon approach a point of no return” said the UN official, adding that division is growing and the opportunity to find a mutually agreed settlement “is fleeing.”

In his speech on the importance of strengthening economic integration across the island in order to clear the path for a mutually acceptable solution, Stewart said the meeting is held at a moment of great tragedy and turmoil in the region.

He remarked that the repercussions from “terrible events in Israel and the Occupied Palestinian Territories” this past month are already being felt in the broader region, including in Cyprus.

The crisis, he added, “serves as a reminder that there is really no such thing as a frozen crisis. Here in Cyprus, there is a growing recognition that the status quo is not static, that as long as the Cyprus issue is not resolved, tensions will persist and many opportunities, including economic, will continue to be lost”.

He said that from August to October this year, “we faced a difficult and sensitive crisis around the bicommunal village Pyla/Pile. Through constructive dialogue and by addressing the concerns of both sides, we were able to come out of it with a very positive consensus on a way forward”.

The UN official said “There have been some challenges in the implementation which began on October 23, but this is normal in the implementation of such an understanding, and both sides remain committed to seeing it through. If Greek Cypriots and Turkish Cypriots can find common ground on such a tricky and sensitive issue, I see this as a hopeful sign that other difficult issues could be approached with the same constructive attitude”, he said, adding “Conflict and uncertainty are bad for business, so a hopeful sign in the political realm is also a hopeful sign for business”.

Stewart also said that “there appears to be a consensus around the appointment of a United Nations envoy for Cyprus, someone to work with the parties on a dedicated basis on the Cyprus issue. This too is a hopeful sign, because many of the challenges and tensions that we, the United Nations, deal with every day in or across the buffer zone are merely symptoms of the larger issue, and they cannot truly be solved until the Cyprus issue is addressed politically.”

The UN head in Cyprus said despite years of discouragement, many local actors and individuals from both sides are showing resilience and continuing to call for a solution to the Cyprus issue.

Stewart said to “solve the Cyprus issue, we need to prepare the ground and I can think of no more potent way to do that than to break down the economic barriers between the two sides of the island and integrate the two economies”.

He explained that “removing barriers and enlarging trade would strengthen integration between the sides of the island, strengthen interdependence between the communities, and create a far better environment for solving the Cyprus issue.  Expanding trade and business links, in particular, can make the idea of a settlement a tangible reality, paving the way for a political solution, he added.

A more integrated economy, he said, “enlarges everyone’s market, helps address structural constraints typical of small island economies, reduces external vulnerabilities, attracts more foreign direct investment and tourism, and creates more and better jobs for everyone”.

He called for improvements to the enabling conditions around Green Line Regulation and intra-island trade, such as efficient crossing points, comparative advantage analysis, resolution of banking-related issues, and the exploration of taxation favourable schemes. The record volume of trade across the Green Line in 2022 was a positive step forward, said Stewart, adding “it is important that such trade becomes a truly two-way street”.

The other reason intra-island trade is so important is the human one, he remarked as trade increases interactions between people, and increased interactions have been shown to increase understanding and openness between them. This is crucial because there is still a huge distrust – not between individuals so much, but between the groups, especially as represented by their political classes.

Stewart said, “There is still a mentality among the political leadership of both sides that they must be seen as not having compromised, but rather having led their side to victory”.

“Mutually acceptable agreements are only achieved through compromise”, adding that gestures that enhance intra-island integration, particularly those with significant economic impacts, bring Cypriots closer and should not necessitate reciprocation. “The benefits they deliver are far more valuable as they build confidence in a shared future and thus pave the way for a mutually agreeable settlement”, he added.

Stewart said that to address the deficit of trust, “confidence-building measures are important. The twelve technical committees established by the leaders to improve the livelihoods of all Cypriots have provided an avenue through which positive steps are taken and tangible things are achieved daily, from intra-island health cooperation to protecting cultural heritage, from managing cooperation on criminal matters to advancing gender equality. With financial support from the European Union, the work these committees do builds a foundation for future talks.”

The UN, through UNFICYP and the Good Offices Mission, he added, is also encouraging cross-communal business networks and connections while he said the next business fair will take place in January 2024 with a focus on sustainable fashion and local business potential.

“It is my firm belief that greater economic activity between the two sides of the island makes good business sense and would have a positive impact on the lives of Cypriots on both sides of the island; but more importantly still, each incremental increase in cross-island trade and business will, brick by brick, blaze a path towards a mutually agreeable settlement of the Cyprus issue”, the UN official concluded.

(Source: Cyprus News Agency)

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