THE SMALL ISLAND OF CYPRUS SUSPENDED BY BREXIT - Article from Le Figaro

The small island of Cyprus suspended by Brexit

Le Figaro – article by Fabrice Node-Langlois – 19/10/16

Google translation from French

The shaded terrace protects from heat, lively above 30 ° C in early October. Tanned, wearing a flower-printed strappy dress  is Cathi Delaney sipping a refreshing iced coffee. On the doorstep is the old stone monastery of Saint Neophytos.  We understand that this Columbia soon sexagenarian, picked on another island as his - Cyprus: sun, sea, the sweetness of life. Except that since the majority of her countrymen voted for the Brexit – exit UK from the EU – Cathi Delaney has concerns.

Like her, some 80 000 subjects of Her Majesty are settled in Cyprus, about one out of Ten in the small Republic, a member of the European Union for twelve years. A good half of these expatriates from the UK are retired. The others work in finance, in tourism, or are military, sometimes with families, stationed in one of two bases the British established on the island. The lion and the unicorn.

"The Brexit poses many uncertainties," worries Cathi. A former insurance broker, she took early retirement with her husband at age 45 and settled here fourteen years ago, in the house they
had built in the village of Tala. "Quiet, located ten minutes from the beach of Coral Bay, but a little cooler due to the altitude, we were captivated, "she says. The couple live on their savings. "I will not get my state pension for 6 years.  Will  my husband gain the benefit of use of the General Hospital scheme in two years time, which allows affordable access to health? "  Asks the retired young Councillor.  Many of her compatriots fear having to find the funds for private insurance for their medical expenses.   On the hills of Tala where expatriate villas with sea view have mushroomed, Cathi Delaney feels at home. So much so that in 2012 she was elected as a local Councillor - as her citizenship of the EU allows. This British councilor is dedicated to the village under the leadership  of Areti Peridou, the bubbly "granny" elected mukhtar, a term inherited from the Ottoman occupation, which designates the head of the community. "  Of 5000 inhabitants, says Areti Peridou, a retired language teacher,   in her perfect English, Tala has 2 400 foreign residents, especially the British, Irish, Scandinavians, and even more recently, Chinese.

Cathi and her friend Areti fear the impact of Brexit on local trade. "If the British lose purchasing power, they consume less. Typically, expatriates eat out once or twice a week at the restaurants, says the English Councillor. If they were forced to leave, it would be catastrophic for trade and real estate. "The equation is simple: pensioners receive their pension.   Sterling lost since 22 June, almost 15% of purchasing power in the euro area, due of the British currency falls. This is the case of Nigel Howarth, set near the resort Limassol for twelve years. This jolly bearded gentleman waived scrutinizing the course of the currency every day. " Too depressing! " he laughed.

For Cathi, Cyprus was initially a holiday destination.   The island of Aphrodite, closer to Beirut and Damascus than Athens, suffered so many influences and occupations over the centuries.  Have succeeded Assyrians and Egyptians; Greek and early Christians from Palestine from the First century; Crusaders and Venetians francs. And finally, Nineteenth century, the British Empire spreads Ottomans and reign over Cyprus almost a century, from 1878 in 1960.

DIPLOMATIC ALLY IN BRUSSELS
The British legacy is omnipresent. Thus, you drive on the left on the island.  Virtually all of the population speaks English.  The Empire bequeathed a solid legacy and defined a cadastre worthy of the name, the big difference with their cousins in Greece. As to the law in force in the Republic, it is modeled on the Common Law.

The concerns related to Brexit are not reserved to just the community of "expats". Some 12,000 young Cypriots study in the United Kingdom. They fear losing the European tariff and
could see tuition fees jump from some 9000 pounds to 20,000 pounds per year. Not to mention the grants from the British government and interest loans reserved for nationals of the EU. This could all disappear. As members of the Commonwealth, could Cypriot students benefit from a better status than other citizens European? Some Hope. No one yet knows the answer.

"Of course we are worried," admits Constantinos Petrides, Deputy Minister responsible for reform. The offices of this Head of State are in the presidential palace, perched on a hill overlooking Nicosia the northern part occupied by the Turkish army since 1974. As a symbol, the façade of this former residence of British governors is always decorated with a bas-relief showing the coat of arms of the UK, the lion and the unicorn.

The government has set up work-groups in the Ministry of Foreign Affairs, and interdepartmental, responsible for assessing the impact of Brexit advised a European diplomat in Nicosia.  The British minister of the Commonwealth, Alan Duncan, recently visited Nicosia. He has assured that the special relationship with Cyprus would not be affected. The UK is the second trading partner of the island after Greece. " Britain is an important market for our agricultural exports" says Phidias Pilides, President of the Chamber of Commerce. The halloumi, the national cheese is particularly appreciated by the large Cypriot diaspora in London.

For the economy, the tourism issue exceeds that of Trade. Certainly there is a large Russian presence, always more numerous on an Orthodox island. But nearly three million foreign visitors are expected this year, a historical record.  The British exceed a million or 40% of the tourists. Tourism accounts for 13% of GDP, and 27% if all tourism spending is included, according to Angelos Loizou, of Cyprus Tourism Organization (CTO). For summer 2016, most Britons had booked before the referendum. It is therefore too early to measure the effect of Brexit. Ultimately, the Sector could be affected as it risks paying too focused a strategy on the low end  holidays, the "all inclusive ". Result, "the British are right here to get drunk, "says a senior politician.  To address this trend and prevent the possible effects of Brexit, Angelos Loizou would like to see the return of the upscale clientele that came in the 1980s, from May to September and not only in July-August. The head of the CTO does not control all parameters. He wonders for example on the future of air travel. " Yes Ryanair or EasyJet are impacted by the Brexit so we can be too. "

On the diplomatic front, the EU's output of the former colonial power means the loss of an ally to the European institutions. "We had the same views in Brussels on trade, market liberalization, taxation, "says one British diplomat who already speaks to the past.  And if, in this disturbing picture, the Brexit had a positive face to Cyprus?  "It may be opportunities in the financial sector "  ventured the  Minister Constantinos Petrides. "Cyprus is trying to develop its activities in finance and business services . There may be an opportunity to use the current uncertainty about the divorce, "says John Patrick Hourican, an Irishman who leads the Bank of Cyprus,  which survived the banking crisis that hit the island in 2013.

According to Marios Tannousis, Director Deputy of the Cypriot Promotion Agency Investment (Cipa), meetings to promote the attractiveness of Cyprus have been organized since the June 22 referendum. A conference is scheduled in London next month to promote the merits of installing Financial establishment subsidiaries in Nicosia or Limassol.

In the end, Harris Georgiades, the young minister of Finance, who has worked for three years with success to get his country out of the banking crisis, minimizes the impact the Brexit. "I'm not worried about our economy, "he says. But "I am very disappointed in the vote of the British and very concerned about the direction taken by the European Union. "