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Member of the European Union since 1 May 2004

On 1 May 2004 the Republic of Cyprus became a full member of the EU completing a long journey that lasted more than three decades. Accession to the EU was a natural choice for Cyprus, dictated by its culture, civilisation, history, its European outlook and adherence to the ideals of democracy, freedom and justice. EU accession has launched a new era of challenges, opportunities and responsibilities for Cyprus.

While Cyprus has a lot to benefit from EU membership, it also has a lot to offer as a member state. Strategically situated at the crossroads of Europe, the Middle East, North Africa and Asia, Cyprus is becoming an even more important regional business centre, as well as an international communications and transport hub. With its modern infrastructure, sound legal system, favourable tax regime, low crime rate and well educated labour force, Cyprus is a favourite regional operations platform for European companies.

Since its accession to the EU, Cyprus has undergone significant structural reforms that have transformed its economic landscape. Trade and interest rates have been liberalised, while price controls and investment restrictions have been lifted. Private financing has been introduced for the construction and operation of major infrastructure projects and monopolies have been abolished.

Even though the application of the EU laws and regulations (the acquis communautaire) is suspended in the area under military occupation by Turkey, the new political context created by the accession to the EU is expected to impact positively on the efforts to reach a comprehensive settlement to the division of Cyprus that will reunite its people and reintegrate its economy.