Gearing Up for Change: With Formal Welcome into the European Union Announced This April, Cyprus Stands to Reap Major Economic and Political Benefits. but EU Membership Also Presents Significant Challenges, Both to Cyprus and Its Non-EU Neighbours. (Cyprus)

Martin, Josh, The Middle East

Strollers along the corniche in the resort city of Limassol will hardly notice a difference this season, but the latest expansion of the European Union is expected to bring great changes to the Cypriot economy. Even the elegant Cypriot pound will disappear in the process, as the country swiftly moves to complete its integration into Europe. By year-end 2006, customers in Limassol boutiques will be using Euros to make their purchases.

For Cyprus, as with its fellow Mediterranean island nation, Malta, EU membership (expected to be formally complete as early as January 2004) will probably mean the end of most indigenous agriculture and manufacturing industries. In Cyprus, for example, wineries will no longer be able to market domestic "sherry." And much of the country's textile industry will probably disappear, apart from a handful of boutique operations.

But Cypriot trade officials believe the decline of those sectors will be vastly offset by the renewed growth of the country's role as a centre for trade and finance in the Eastern Mediterranean. Government officials say the country will expand its focus from traditional shipping-related services, to embrace investment banking, consulting services, and telecommunications.

"Cyprus will bring the European Union to the Eastern Mediterranean and the shores of the …

Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Gearing Up for Change: With Formal Welcome into the European Union Announced This April, Cyprus Stands to Reap Major Economic and Political Benefits. but EU Membership Also Presents Significant Challenges, Both to Cyprus and Its Non-EU Neighbours. (Cyprus). Contributors: Martin, Josh - Author. Magazine title: The Middle East. Publication date: May 2003. Page number: 38+. © 2009 IC Publications Ltd. COPYRIGHT 2003 Gale Group.

This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.