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- Title
The Outlook for Peace in Cyprus after the Financial Crisis and Gas Discoveries.
- Authors
Kaynak, Akif Bahadır
- Abstract
The end of Cold War eased political tensions in many corners of the World however the conflicts arising from regional dynamics were carried on to the new century. The Greek-Turkish power struggle on Cyprus is among those hot spots where a political settlement has not been reached yet even though the root of disagreement lies in Cold War years. The rejection of Annan Plan by the South in 2004 created a frustration in the Northern Cyprus and Turkey breaking hopes for reconciliation. This status quo was fundamentally altered when the economic model of Cyprus collapsed as a consequence of contagion from European financial crisis. Almost simultaneously significant reserves of natural gas deposits were discovered in Eastern Mediterranean some of which were located to the south of the island. Aphrodite natural gas reserve promised the recovery of economic glimmer of the island provided that legal and technical issues on the extraction and transfer of this resource to European markets are resolved. Turkey has the means to increase transaction costs for Cyprus and energy companies if left out of this deal but can alternatively provide a transit route to European markets for Cyprus' natural gas. The demise of Cyprus as an off-shore financial center and the prospects for becoming and energy supplier to European markets changed the payoffs of this deadlocked game considerably. In this new setting Turkey, Greece and Cypriots have a strong incentive to cooperate in order to realize the potential in the energy game.
- Subjects
CYPRUS economic conditions; PEACE; ECONOMIC development; NATURAL gas; INTERNATIONAL relations
- Publication
Journal of Cyprus Studies, 2017, Vol 19, Issue 43, p1
- ISSN
1303-2925
- Publication type
Article