The Republic of Cyprus
-Name of State
Kypriaki Democratia (Greek), Kibris Cumhuriyeti (Turkish), Republic of Cyprus (English)

Cyprus gained its independence from British colonial rule in 1960. In 1974 Turkeyinvaded Cyprus and occupied 36,2% of its sovereign territory. The ceasefire line runsright across the island and cuts through the heart of the capital, Nicosia (Lefkosia),dividing the city and the country.

Although its northern part is under foreign occupation, the Republic of Cyprus isinternationally recognised as the sole legitimate State on the island with sovereigntyover its entire territory.

Location and Area
Cyprus is a small island of 9.251 sq kms (3.572 sq miles), extending 240 kms (149 miles)from east to west and 100 kms (62 miles) from north to south. It is strategically situatedin the far eastern end of the Mediterranean (33° E, 35°N), at the crossroads of Europe,Africa and Asia, and in close proximity to the busy trade routes linking Europe with the Middle East, Russia, Central Asia and the Far East.

Topography
Troodos massif (southwest); highest point: Olympos (1.953m.).
Kyrenia (Keryneia) or Pentadactylos range (north); highest point:Kyparisssovounos (1.024m).
Central plain: Messaoria plain.
There are no perennial rivers, only a few springs and streams.

Climate
Mediterranean, with mild, wet winters (mean daily minimum 5°C, 41°F), and hot, drysummers (mean daily maximum 36°C, 97°F).

Flora and Fauna
Seventeen percent of the island is woodland. The natural vegetation includes forestsof evergreen and deciduous trees, shrubs and flowers. The flora comprises about 1.800species, sub-species and varieties. About 140 or 7% of these are endemic to Cyprus.

There are also 365 species of birds but only 115 breed on the island. Two species and fivesub-species have been classified as indigenous to the area. Among the animals the moufflonis the most noteworthy. It belongs to the sheep family and is unique in the world.1

Government
-Executive PowerPresidential system of government.
The President is elected by universal suffrage fora five-year term. Executive power is exercised through an 11-member Council ofMinisters appointed by the President. Turkish Cypriots have refused to participate inthe government since late 1963.

- Legislative Power
Multi-party unicameral House of Representatives.
Voting system: Simple proportional representation.House members are elected by universal suffrage for a five-year term.
The seats reserved for Turkish Cypriots remain vacant.

- Judiciary
The administration of justice is exercised by the island’s separate and independentJudiciary. Under the 1960 Constitution and other legislation in force, the followingjudicial institutions have been established:

The Supreme Court of the Republic, The Assize Courts and District Courts.

- Independent Officers and Bodies
There are also independent officers and bodies which do not come under any ministry:the Attorney-General and the Auditor-General who head the Law Office and Audit Officerespectively; the Governor of the Central Bank of Cyprus; the Ombudsman (Commissionerfor Administration); the Public Service Commission; the Education Service Commission;the Planning Bureau; the Treasury; the Commission for the Protection of Competition;the Office of the Commissioner of Electronic Communications and Postal Regulation;the Cyprus Energy Regulatory Authority; the Cyprus Agricultural Payments Organisation;the Office of the Commissioner for Personal Data Protection; the Cooperative SocietiesSupervision and Development Authority; the Internal Audit Service; the Office of theCommissioner for State Aid Control; the Tenders Review Authority; the Law Commissioner and the Tax Tribunal.

The Central Bank of Cyprus
The Central Bank of Cyprus was established in 1963 as an autonomous institution.Since July 2002, the Central Bank has been governed by the Central Bank of CyprusLaw 2002. This law ensures the Bank’s independence as well as compatibility with therelevant provisions of the Treaty establishing the European Community and the Statuteof the European System of Central Banks and of the European Central Bank. At thesame time, the pertinent constitutional provisions were amended so as to ensure theindependence of the Central Bank as prescribed by the European Union acquis.

The primary objective of the Bank is to ensure price stability. Without prejudice to thisobjective, the Bank supports the general economic policy of the government.

The Central Bank has intensified its efforts towards the liberalisation of the financial sector,which is necessitated both by economic considerations, as well as by the need to harmoniseCypriot economic structures and policies with those of the EU.

With regard to banking supervision, the objective of the Central Bank is to ensure the stabilityof the banking system, the minimisation of systemic risk and the protection of depositors.The rules, policies and practices of the Bank are in line with the EU directives and therecommendations of the Basel Committee on banking supervision.

Local Authorities
Local government is the responsibility of the Municipal and CommunityCouncils. The former is concerned with the provision of local governmentservices and administration of the towns and large rural areas, whilethe latter with the management of village affairs. These councils areindependent bodies whose members are elected by universal suffrage.

International Relations
On foreign policy issues the Cyprus government aligns itself with theEuropean Union position in the context of the EU’s Common Foreignand Security Policy. Since 1974 the government’s efforts focused primarilyon ending Turkey’s military occupation and division of the island. AlthoughCyprus has long identified with the West, it has also developed close relationswith Israel, the Arab world, Latin American countries and the African continent. Cyprusis a member of many international organisations including:
- World Trade Organisation (WTO) (1995)
- Organisation for Security and Cooperation in Europe (OSCE) (1975)
- The Commonwealth (1961)
- The Council of Europe (CoE) (1961)
- The United Nations (UN) (1960) and its specialised agencies
- The World Bank
- The International Monetary Fund3

Member of the European Union
On May 1, 2004 the Republic of Cyprus became a full memberof the EU completing a long journey that lasted more thanthree decades.

Accession to the EU was a natural choice forCyprus, dictated by its culture, civilisation, history,its European outlook and adherence to the idealsof democracy, freedom and justice. EU accessionhas launched a new era of challenges,opportunities and responsibilities for Cyprus.

The application of the EU laws and regulations(the acquis communautaire) is suspended in thearea under military occupation by Turkey, pendinga solution to the division of the island. Meanwhile,the government of Cyprus in cooperation with the EU Commission has been promoting arrangementsto facilitate increased economic transactions betweenthe two communities and improve the standard of livingof Turkish Cypriots.

While Cyprus has a lot to benefit from EU membership, it also has alot to offer as a member state. Strategically situated at the crossroads ofEurope, the Middle East, North Africa and Asia, Cyprus is becoming an even more importantregional business centre, as well as an international communications and transport hub. Withits modern infrastructure, sound legal system, tax incentives, low crime rate and well educatedlabour force Cyprus is a favourite regional operations platform for European companies.

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

The new political context created by the accession to the EU is also expected to impactpositively on the efforts to reach a comprehensive settlement to the division of Cyprus thatwill reunite its people and reintegrate its economy.

Population
837.300 (Jan 2005)*
77,8% (651.100) Greek Cypriots**
10,5% (88.100) Turkish Cypriots
11,7% (98.100) foreign residents and workers
Population density: 88,4 persons per sq km.

*The population does not include the 122.000 illegal settlers residing in the Turkish occupiedpart of Cyprus.

**This figure includes the 8.000 (1%) Maronites, Armenians and Latins who opted to join theGreek Cypriot community. Under the 1960 Constitution they had to choose to belong to eitherthe Greek Cypriot or Turkish Cypriot community. 

Languages
Greek and Turkish are the official languages. English is widely spoken.

Religion
The Greek Cypriots are predominantly Christian and adhere to the Autocephalous GreekOrthodox Church of Cyprus. The Turkish Cypriots are Muslims, while the smallerCypriot communities of Maronites, Armenians and Latins belong to other Christiandenominations.