Proposal for an Act of Adaptation of the terms of Accession of the United Cyprus Republic to the European Union
Date: 2004-04-16
Institutions: European Commission
Subjects: Cyprus, accession criteria, accession to the European Union

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.4.2004 
COM(2004) 189 final 

Proposal for an 

ACT OF ADAPTATION 

OF THE TERMS OF ACCESSION OF THE UNITED CYPRUS REPUBLIC  
TO THE EUROPEAN UNION 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
 
  
EXPLANATORY MEMORANDUM 

On 31 March 2004, UN Secretary-General Kofi Annan submitted to the parties concerned the 
finalized  “Comprehensive  Settlement  of  the  Cyprus  Problem”.  His  proposal  shall  be 
submitted  for  approval  at  separate  simultaneous  referenda  in  both  Cypriot  communities  on 
24 April  2004  as  already  agreed  by  all  parties  in  New  York  on  13 February  2004.  After 
successful outcome of the referenda a reunited island will join the European Union. 

It should be recalled that the European Council has repeatedly confirmed its strong preference 
for  accession  by  a  united  Cyprus.  It  has  also  repeatedly  stated  the  Union’s  readiness  to 
accommodate the terms of a settlement in line with the principles on which the EU is founded. 
The  European  Council  welcomed  in  its  conclusions  of  26 March  2004  “the  Commission’s 
continued  willingness  to  offer  assistance  for  a  speedy  solution  within  the  framework  of  the 
acquis”. 

The  Accession  Treaty  foresees  in  the  event  of  a  settlement  a  special  procedure  for  the 
adaptations  to  the  terms  concerning  the  accession  of  Cyprus  to  the  European  Union  with 
regard to the Turkish Cypriot community. The legal basis for the attached proposal for the Act 
of Adaptation accommodating the terms of the settlement is Article 4 Protocol No. 10 of the 
Act of Accession. This provision delegates treaty-making power in respect of the adaptation 
of the terms of accession of Cyprus and therewith primary law from the Member States to the 
Council  and  provides  that  the  Commission  will  make  a  proposal  for  the  exercise  of  this 
delegated power.1 The resulting legal act inevitably is of a sui generis nature.2 

Since the proposal for the act had to be part of the comprehensive settlement submitted by the 
Secretary-General, its procedural genesis was equally of a sui generis nature. The text of this 
act was finalized at the final stage of the negotiations with support provided by a Commission 
delegation, led by Commissioner Verheugen under coverage of President Prodi. In this way 
the Community interest and the Commission’s power of initiative under Article 4 of Protocol 
No.  10  could  best  be  safeguarded  under  the  circumstances  and  in  line  with  the  Council 
conclusions of 26 March 2004. 

This  proposal  for  the  act  accommodates  the  terms  of  the  settlement  and  recognizes  the 
particular  national  identity  of  Cyprus  and  the  need  to  protect  the  overall  balance  between 
Greek Cypriots and Turkish Cypriots. It takes account of large economic disparities between 
the  (future)  Cypriot  constituent  states  and  the  economic  situation  in  the  (future)  Turkish 
Cypriot  constituent  state  in  general.  The  act  takes  also  account  of  the  special  relations  of 
Greek  Cypriots  and  Turkish  Cypriots  with  Greece  and  Turkey  respectively.  It  should  be 
stressed that the proposal for the act does not include permanent derogations from the acquis, 
but only transitional periods. 

1 

2 

Article 4 reads: “In the event of a settlement, the Council, acting unanimously on the basis of a proposal 
from the Commission, shall decide on the adaptations to the terms concerning the accession of Cyprus 
to the European Union with regard to the Turkish Cypriot community.” 
The UN Secretary-General has informed the parties in letters dated 31 March 2004 that the Commission 
is committed to submitting the proposal for the Act of Adaptation for consideration by the Council and 
to bringing about a final outcome, “which will result in the adaptation of primary law and ensure legal 
certainty and security within the European Union legal system for all concerned”.  

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The proposal for the act contains the following main elements: 

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The  Turkish  Cypriot  state  may  require,  on  a  non-discriminatory  basis,  permissions 
for the acquisition of immovable property until it has reached a level of 85 % of the 
GDP of the Greek Cypriot state, not exceeding however a period of 15 years. During 
this  transitional  period  of  maximal  15  years  there  is  no  prohibition  to  acquire 
property,  but  an  authorisation  procedure  may  be  applied  on  published,  objective, 
stable and transparent criteria and in a non-discriminatory manner. The Commission 
shall report every five years and may recommend the abolishment of the restrictions. 

The right of Cypriot citizens to reside in the other constituent state may be restricted 
(“internal restriction”). 

The right of residence in Cyprus of Greek and Turkish nationals may be restricted. 

In the event of serious deterioration of the economic situation in the Turkish Cypriot 
state,  appropriate  safeguard  measures  may  be  taken  for  a  period  of  three  months 
(only Commission may prolong the measures). 

Rules of implementation of special entry and residence rights for Turkish nationals, 
compatible with the principle of equal treatment of Greek and Turkish nationals and 
participation  of  Cyprus  in  the  Schengen  area,  shall  be  negotiated  between  the 
Community and Turkey within six months. 

Turkish shall be an official language upon fulfilment of the necessary personnel and 
technical requirements. 

It should be noted that the finalized comprehensive settlement ensures that the United Cyprus 
Republic  is  able  to  speak  with  one  voice  in  international  fora  and  has  structures  which  are 
strong enough to implement the acquis. 

Therefore,  this  act  should  be  submitted  to  the  Council  without  delay  for  its  immediate 
adoption by the Council after a successful outcome of the referenda. Moreover, following the 
reunification of the island, the application of the acquis will need to be extended step by step 
to the Turkish Cypriot constituent state according to Article 1 paragraph 2 of Protocol No. 10. 
In a first step, the institutional acquis as well as general provisions need to be extended to the 
Turkish Cypriot constituent state. 

As the UN Secretary-General stated in his letters the comprehensive settlement represents the 
best  chance  ever  for  Cyprus  to  be  reunited  so that  all  Cypriots  could  fully  benefit  from  EU 
membership. 

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Proposal for an 

ACT OF ADAPTATION 

OF THE TERMS OF ACCESSION OF THE UNITED CYPRUS REPUBLIC  
TO THE EUROPEAN UNION 

THE COUNCIL OF THE EUROPEAN UNION 

Having  regard  to  Protocol  No.  10  of  the  Act  of  Accession  2003,  and  in  particular  Article  4 
thereof, 

Having regard to the proposal from the Commission, 

(1) 

(2) 

Taking into account the approval of the Foundation Agreement by the Greek Cypriots 
and the Turkish Cypriots on 24 April 2004, 

Taking  into  account  the  Treaties  of  Guarantee  and  Alliance,  the  Additional  Protocol 
thereto, and the Treaty of Establishment, 

(3) 

Bearing in mind and respecting the demilitarisation of Cyprus, 

(4) 

(5) 

(6) 

(7) 

(8) 

Considering  that  the  Act  of  Accession  shall  not  prevent  the  implementation  of  the 
Foundation Agreement, and shall accommodate its terms in line with the principles on 
which the European Union is founded, 

Recalling  that  the  European  Union’s  mission  is  peaceful  cooperation  of  states  and 
citizens, founded on the principles of liberty, democracy, respect for human rights and 
fundamental  freedoms  and  the  rule  of  law,  principles  which  are  common  to  the 
Member  States  and which  have found their expression in the Foundation Agreement 
which introduces a  new state of affairs  in Cyprus  and  allows  its  peaceful  integration 
into the Union, 

Underlining  that  the  political  equality  of  Greek  Cypriots  and  Turkish  Cypriots,  the 
equal status of the two constituent states, and the prohibition on any unilateral change 
to the state of affairs established by the Foundation Agreement, fall within the terms of 
Article 6(1) of the Treaty of the European Union, 

Recognizing  the  particular  national  identity  of  Cyprus,  and  the  need  to  protect  the 
balance  between  Greek  Cypriots  and  Turkish  Cypriots  in  Cyprus,  the  bi-zonal 
character of the United Cyprus Republic and the distinct identity and integrity of the 
constituent states, which require certain safeguards and temporary restrictions on the 
right of residence of Cypriot citizens as well as citizens of Greece and Turkey, 

Considering  that  the  main  articles  of  the  Foundation  Agreement  form  part  of  the 
national  identity  of  the  United  Cyprus  Republic,  which  the  European  Union  shall 
respect, 

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(9) 

Bearing in mind that the United Cyprus Republic shall take all appropriate measures, 
whether in general or in particular, to ensure the fulfilment of the obligations arising 
out  of  European  Union  membership,  in  line  with  the  specifications  of  the  Act  of 
Accession and this Act 

(10)  Underlining  that  accession  to  the  European  Union  shall  benefit  Greek  Cypriots  and 

Turkish Cypriots alike and promote development to help reduce economic disparities, 

(11)  Recalling  that,  in  accordance  with  the  Presidency  Conclusions  of  the  Brussels 
European  Council  of  12  December  2003,  the  Union  is  ready  to  provide  financial 
assistance for the development of the northern part of Cyprus following a settlement, 

(12)  Being convinced that the economic disparities between the Turkish Cypriot constituent 
state and European Union Member States as well as between the two constituent states 
necessitate  authorisation  procedures  for  the  acquisition  of  property  in  the  Turkish 
Cypriot  constituent  state  in  order  to  avoid  unacceptable  sudden  price  increases  and 
large scale buy-out of land, 

(13)  Being further convinced that the economic situation in the Turkish Cypriot constituent 
state  may  also  necessitate  the  adoption  of  special  safeguard  measures  for  a  limited 
period of time in order to protect certain sectors of its economy, 

(14)  Taking into account the special relations and strong ties of Greek Cypriots and Turkish 

Cypriots with Greece and Turkey respectively, 

(15)  Bearing  in  mind  that,  as  a  European  Union  Member  State,  Cyprus  shall  fulfil  its 
obligations arising from the Association Agreement between Turkey and the European 
Communities  of  1963,  its  additional  Protocol  and  the  decisions  taken  by  the 
Association  organs  including  the  decision  establishing  a  Customs  Union  between 
Turkey  and  the  European  Union,  thereby  according  European  Union  treatment  to 
Turkey in the fields where this is provided for, 

(16)  Wishing  to  accord,  to  the  extent  possible  with  the  European  Union  membership  of 

Cyprus, similar rights to Greek and Turkish nationals vis-à-vis Cyprus, 

(17)  Considering  that  the  Foundation  Agreement  foresees  equivalent  entry  and  resident 
rights  for  Greek  and  Turkish  nationals  vis-à-vis  Cyprus.  The  implementation  of  this 
principle requires derogations from Community law in the case of Cyprus. Unlimited 
immigration can, however, not be accorded to either Greek or Turkish nationals in the 
interest of the internal balance of population in Cyprus, 

(18)  Underlining  that  all  necessary  preparations  should  start  immediately  so  that  Turkish 
shall become and operate as an official and working language of the European Union 
as soon as possible 

HAS ADOPTED THIS ACT OF ADAPTATION OF THE TERMS OF ACCESSION: 

Article 1 
Property 

1. 

Notwithstanding  existing  provisions  of  Community  law,  the  application  of 
restrictions, on a non-discriminatory basis, on the right of natural persons who have 

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2. 

3. 

1. 

not  been  permanent  residents  for  at  least  three  years  in  the  Turkish  Cypriot 
constituent  state,  and  of  legal  persons,  to  purchase  immovable  property  in  the 
Turkish  Cypriot  constituent  state  without  permission  of  the  competent  authority  of 
that  constituent  state,  for  fifteen  years or  for  as  long  as  the  gross  domestic  product 
per  capita  in  that  constituent  state  does  not  reach  the  level  of  85%  of  the  gross 
domestic product per capita in the Greek Cypriot state, whichever is the earlier, shall 
not be precluded. 

The authorisation procedure for the acquisition of immovable property applied by the 
competent  authorities  of  the  Turkish  Cypriot  constituent  state  shall  be  based  on 
published,  objective,  stable  and  transparent  criteria  and  shall  be  applied  in  a  non-
discriminatory manner. 

The  Commission  shall  report  every  five  years  to  the  European  Parliament  and  the 
Council on the application of the provisions of paragraphs 1-2. The Commission may 
at that time recommend to the Turkish Cypriot constituent state to abolish in total or 
in  part  the  restrictions,  if  it  considers  that  the  political,  economic  and  social 
conditions in Cyprus so allow. 

Article 2 
Residence of Cypriot citizens 

Notwithstanding  existing  provisions  of  Community  law,  the  application  of 
restrictions, on a non-discriminatory basis, on the right of a Cypriot citizen to reside 
in  a  constituent  state  of  which  he  does  not  hold  the  internal  constituent  state 
citizenship status shall not be precluded, 

a) 

b) 

c) 

in the form of a moratorium, during the first five years following the date of the 
entry into force of this Act; 

if the percentage of such residents of the total population of a municipality or 
village has reached 6% between the 6th and 9th years and 12% between the 10th 
and 14th years following the date of entry into force of this Act; and 

if the percentage of such residents of the total population of a constituent state 
has reached 18 % for a period of up to nineteen years following the entry into 
force  of  this  Act  or  until  Turkey  joins  the  European  Union,  whichever  is  the 
earlier. 

2. 

Thereafter,  either  constituent  state  may,  with  a  view  to  protecting  its  identity,  take 
safeguard  measures  to  ensure  that  no  less  than  two-thirds  of  its  Cypriot  permanent 
residents speak its official language as their mother tongue. 

Article 3 
Residence of Greek and Turkish nationals 

1. 

Notwithstanding  existing  provisions  of  Community  law,  the  application  of 
restrictions, on a non-discriminatory basis, on: 

a) 

the  right  of  Greek  nationals  to  reside  in  Cyprus,  if  the  number  of  resident 
Greek nationals has reached 5% of the number of resident Cypriot citizens who 

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hold  the  internal  constituent  state  citizenship  status  of  the  Greek  Cypriot 
constituent State and who are not dual nationals; 

the  right  of  Turkish  nationals  to  reside  in  Cyprus,  if  the  number  of  resident 
Turkish  nationals  has  reached  5%  of  the  number  of  resident  Cypriot  citizens 
who  hold  the  internal  constituent  citizenship  status  of  the  Turkish  Cypriot 
constituent State and who are not dual nationals; 

shall not be precluded for a transitional period of up to 19 years after the entry 
into force of this Act or until Turkey joins the European Union, whichever is 
the earlier. 

b) 

c) 

Thereafter, the United Cyprus Republic, in consultation with the Commission, may 
take  safeguard  measures  to  ensure  that  the  demographic  ratio  between  Cyprus’s 
permanent  residents  speaking  either  Greek  or  Turkish  as  mother  tongue  is  not 
substantially altered. 

Article 4 
Safeguard measures 

Without prejudice to Articles 37 and 38 of the Act of Accession, if until the end of a 
period  of  up  to  six  years  after  the  entry  into  force  of  this  Act,  the  operation  of  the 
European Union’s internal market causes, or threatens to cause, difficulties which are 
serious  and  likely  to  persist  in  any  sector  of  the  economy,  or  which  could  bring  a 
serious  deterioration  in  the  economic  situation  in  the  Turkish  Cypriot  constituent 
state,  the  competent  Cypriot  authorities  may  take  appropriate  safeguard  measures 
which  shall  be  applicable  for  a  period  of  three  months.  These  measures  shall  be 
proportional  and  shall  not  constitute  disguised  restrictions  on  trade  and  shall  take 
account of the interests of all parties concerned. 

On request, the Commission may prolong these measures, in total or in part, or adopt 
different measures of which it shall determine the time of application within the six 
years period set out in paragraph 1.  

2. 

1. 

2. 

Article 5 
Equivalent rights of Greek and Turkish nationals 

Without  prejudice  to  the  restrictions  applied  under  Articles  1-3  and  rules  applying  to  entry 
and  residency  rights  of  Turkish  nationals  in  other  Member  States,  Cyprus  is  authorised  to 
accord  to  Turkish  nationals  equivalent  treatment  with  Greek  nationals  regarding  entry  and 
residency  rights.  Rules  of  implementation  for  such  entry  and  residency  rights  for  Turkish 
citizens, compatible with the above principles and the participation of Cyprus in the Schengen 
area, shall be negotiated between the European Community and Turkey within six months. 

Article 6 
The European Security and Defence Policy 

The participation of Cyprus in the European Security and Defence Policy shall fully respect 
the provisions of the Foundation Agreement and the provisions of the Treaties of Guarantee 

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and  Alliance  and  the  Additional  Protocols  thereto,  and  in  no  sense  undermine  those 
provisions. 

Article 7 
Representation in the European Parliament 

Cyprus  will  be  represented  in  the  European  Parliament  according  to  proportional 
representation, provided that each constituent state is attributed no less than one third of the 
Cypriot seats in the European Parliament. 

Article 8 
Turkish as official language of the European Union 

1. 

2. 

3. 

Turkish shall be an official and working language of the institutions of the European 
Union. 

The Council shall decide on the effective application of paragraph 1 upon fulfilment 
of  the  necessary  personnel  and  technical  requirements.  In  the  period  preceding  this 
decision,  the  Turkish  language  may  be  used  in  European  Council  and  Council 
meetings. 

The  texts  of  the  acts  of  the  institutions  and  the  European  Central  Bank,  adopted 
before  paragraph  1  takes  effect,  and  drawn  by  the  Council,  the  Commission  or  the 
European Central Bank, in Turkish shall, from that date be authentic under the same 
conditions as the texts drawn in the other official languages. They shall be published 
in  the  Official  Journal  of  the  European  Union  if  the  texts  in  the  other  official 
languages were so published. 

Article 9 
Application 

This  Act  shall  be  published  in  the  Official  Journal  of  the  European  Union  and  become 
applicable the same day. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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