2020 Cyprus Country Report

Government & Politics
A Key EU Outpost
As the European Union’s easternmost member state, Cyprus has established
itself as a geostrategic EU outpost at the crossroads of three continents.
As an international business centre and with global cooperation in
multiple sectors, Cyprus’ reach goes far beyond its borders, with 2020 also
bringing new efforts to finally reach a solution for this divided island.
The Republic of Cyprus is a unitary presidential
representative republic, where the
President of Cyprus is both head of state and
head of government, and executive power is
exercised by the government. Legislative power
is vested in both the government and the parliament,
and the judiciary is independent of the executive
and the legislature. The seventh president
of the Republic of Cyprus, Nicos Anastasiades,
was re-elected for another five-year term on 4
February 2018. The conservative candidate and
head of the DISY party won his second term
following a run-off presidential election with a
majority of 55.99% of the vote. Embarking on
his second term in office, the President called for
unity to address future challenges.
At the start of his first term, Cyprus suffered a
major financial crisis, and President Anastasiades
had to take robust measures to steer the country
back on track from one of the most challenging
economic times in the island’s history. The
economy bounced back swiftly returning to
growth in 2015, investment grade rating in 2018
and recording an average GDP growth of 5.4%
in 2016-19, making Cyprus one of the fastest
growing economies in the European Union. In
2020, this growth momentum has been stalled by
the consequences of the Covid-19 pandemic, but
with strong action and robust support packages
in place the country has fared better than many
of its European peers.
The division of Cyprus remains one of the
most long-standing and prominent issues in the
political arena. UN-brokered peace talks between
the Greek and Turkish Cypriot leaderships,
which first began in 1968, had gained significant
momentum in 2015 only to collapse in 2017.
In October this year, following the presidential
election win of Ankara-backed Turkish Cypriot
leader Ersin Tatar, the ‘Cyprus Problem’, which
led to the de facto division of the island between
the mainly Greek-speaking south and the mainly
Turkish-speaking north for over four decades,
may have become a tougher puzzle to solve. The
change in leadership comes amid rising ten-
sions between Cyprus, Greece and Turkey over
hydrocarbons explorations in Cyprus’ Exclusive
Economic Zone (EEZ) and the controversial
partial reopening of the coastal city of Varosha
in Famagusta. However, the new Turkish Cypriot
leader has already accepted Cypriot President
Nicos Anastasiades' offer to resume talks, backed
by the encouragement from the UN and the EU
to show “constructive engagement”.
DIVIDED ISLAND
In 1960 Cyprus gained independence from
Britain and became a unitary state of both Greekand
Turkish-Cypriots (respectively around 80%
and 20% of the population). In July 1974, a rightwing
coup backed by the military junta in power
in Greece overturned the democratically elected
government, forcing the Cypriot President
Archbishop Makarios to flee. This prompted
Turkey, one of the guarantor powers, which also
include Greece and the UK, to send its troops
into the island to support the Turkish Cypriot minority.
Fierce fighting followed and the ensuing
ceasefire line – known as the Green Line and patrolled
by United Nations troops – has effectively
partitioned the island ever since. However, visitors
can safely access either side through various
checkpoints along the Green Line. Today, Nicosia
is the world’s last divided capital, since the fall of
Political Parties
Constitution, Institutions
and Administration
The 1960 constitution provided
for power sharing between
the Greek Cypriot and Turkish
Cypriot communities. Votes
on important issues required
separate parliamentary
majorities, and the Greek
Cypriot president and the
Turkish Cypriot vice president
both had the right of veto
on important decisions.
The system of government
is presidential, with the
separation of powers between
the executive and the
legislature. The presidential
term lasts five years, with the
next presidential election due
in 2023. Ministers, who are
appointed by the president,
cannot hold seats in the
House of Representatives.
The House of Representatives
is elected by proportional
representation. Its normal
term is five years.
Dominant Political Parties:
Democratic Rally (DISY), a right-wing party led by Averof Neophytou
Progressive Party of the Working People (AKEL), a left-wing party led by Andros Kyprianou
Democratic Party (DIKO), a centre-right party led by Nicolas Papadopoulos
Movement of Social Democracy (EDEK), a social democratic party led by Marinos Sizopoulos
Smaller Political Parties:
Ecologists Movement, also known as the Cyprus Green Party, led by Charalambos Theopemptou
Allileggii (Solidarity), a nationalist party led by Eleni Theocharous
Citizens’ Alliance (Symmaxia Politon), a centre-left party led by Giorgos Lillikas
National People’s Front (E.L.A.M.), an ultranationalist party led by Christos Christou
16 Country Report CYPRUS 2020