Cyprus - Internal market

Short-term priorities:

• public procurement: further harmonise legislation with regard to publication, time limits and review bodies;
• extension of the law to local authorities and bodies governed by public law;
• industrial and intellectual property rights: align and enforce legislation on trademarks, copyright and neighbouring rights;
• strengthen administrative capacity and measures to combat counterfeiting, especially by strengthening border controls;
• free movement of goods: adopt horizontal legislation on standardisation and certification;
• transpose sectoral legislation in the field of motor vehicles, pharmaceuticals, chemicals, cosmetics and hygiene requirements in foodstuffs;
• speed up adoption of standards;
• strengthen administrative structures, in particular for standards, certification and accreditation;
• further transposal of the "New Approach" directives;
• free movement of capital: further align rules on medium and long-term capital operations and prepare the way for subsequent liberalisation of short-term operations;
• competition: adopt antitrust legislation, align legislation on State aid and increase the level of transparency of indirect support;
• telecommunications: adopt a new law in order to ensure alignment with Community law;
• establish an independent regulatory authority;
• taxation: further harmonise VAT;
• non-discrimination in relation to excise duties on imports originating in the European Union;
• introduce the tax warehouse system and a procedure for the movement of dutiable goods;
• ensure that new tax measures comply with the principles of the Code of Conduct for business taxation;
• customs: adopt a pre-accession strategy for the harmonisation of Cyprus' customs legislation;
• accelerate the process of computerisation .

Assessment (November 2001)

In the field of public procurement, the harmonisation of legislation on publication, time limits and review bodies has not been carried out. The legislation on trademarks and patents is in line with Community law, but the law on copyright needs to be amended. The legislation on the free movement of foodstuffs has been adopted. The "New Approach" directives still need to be transposed. The liberalisation of capital movements is continuing. The alignment of antitrust legislation is sufficient, but action is needed on legislation relating to horizontal cooperation agreements. A law setting up a national regulatory authority in the field of telecommunications has been adopted. VAT alignment has been carried out. A general increase in the rates of excise duty is required. The customs computerisation process has speeded up.

Assessment (October 2002)

These priorities have not been assessed. The section on the Partnership for accession in the 2002 report focuses on issues which require more work in order to prepare Cyprus for accession.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Medium-term priorities:

• public procurement: eliminate national preference clause favouring local production;
• company law: transpose the second and the twelfth directives, further align with the first, third and sixth directives;
• implement Community law on balance sheets and profit-and-loss accounts;
• align with EU accounting rules for "private exempt companies";
• data protection: adopt national legislation including the creation of an independent surveillance authority;
• free movement of goods: complete the transposal of the "New Approach directives";
• free movement of capital: abolish remaining restrictions and authorisation procedures;
• free movement of persons: complete the alignment of mutual recognition of diplomas;
• competition: strengthen the competition authorities;
• compatibility of legislation on State aid;
• telecommunications: complete the alignment of the regulatory framework and the creation of an independent regulatory authority;
• end the monopoly situation in voice telephony;
• taxation: complete the alignment of the VAT system and increase rates of excise duty;
• review existing laws and ensure compliance with the Code of Conduct for business taxation;
• consumer protection: further align and strengthen market surveillance and enforcement authorities;
• customs: accelerate the harmonisation of laws, including introduction of customs procedures with economic impact and simplified procedures;
• strengthen institutional and administrative capacity;
• continue the fight against fraud and corruption.

Assessment (November 2001)

In the field of public procurement, there are plans to eliminate the national preference clause favouring local production. Although the Cypriot legislation on accounting rules conforms with Community law, directives on other aspects of company law need to be transposed. A draft law on the protection of personal data and the creation of a surveillance authority are in the process of adoption. The "New Approach" directives have not yet been transposed. Restrictions on the free movement of capital still need to be abolished. Progress is being made for some professions in the mutual recognition of diplomas. The competition authority has been strengthened. There are still major delays in the adoption of legislation on telecommunications. The VAT system still needs to be aligned. The alignment with Community consumer protection law is on the right track. New customs procedures still need to be introduced.

Assessment (October 2002)

These priorities have not been assessed.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Following the signing of the Accession Treaty on 16 April 2003, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia acceded to the European Union on 1 May 2004.

REFERENCES

Council Decision 2000/248/EC of 20.03.2000Official Journal No L 78, 29.03.2000

Commission Report COM(2001) 700 final - SEC(2001) 1745Not published in the Official Journal

Commission Report COM(2002) 700 final - SEC(2002) 1401Not published in the Official Journal

Commission Report COM(2003) 675 final - SEC(2003) 1202Not published in the Official Journal

Treaty of Accession to the European Union [Official Journal L 236, 23.09.2003]

Last updated: 19.11.2004