WRITTEN QUESTION No. 397/98 by Nikitas KAKLAMANIS to the Commission. Laundering of Illegal Funds in Northern Cyprus
2. 10. 98 EN Official Journal of the European Communities C 304/93 Regions bordering the CEECs may feel the impact of the opening of markets and of enlargement more quickly and intensively than other regions, but they will also benefit from their closeness to new markets providing new opportunities. The importance of these new markets for Community producers is evidenced by the rapid growth in trade between the Community and the CEECs and the increasing surplus of the Communityís trade balance with them. While wages in CEECs are significantly below Austrian levels, this is not reflected directly in the cost of products, since the productivity of Austrian workers may be expected to be higher. Furthermore, the impact of enlargement, in particular in sensitive areas, will be softened through transitional arrangements. Many of the border regions are already assisted by the structural funds. The new German La¤nder and Burgenland are at present, and are likely to remain, objective 1 regions. Most of the other border regions in Germany, Austria and Italy currently receive assistance under objective 5b. Given that under the new objective 2, it is foreseen that the Member States will be able to present national criteria for the selection of a significant share of their assisted areas, they can include border areas if they consider them to face specific problems. Furthermore, the Commission proposes to maintain the Community initiative Interreg which, together with the PHARE-cross border cooperation (CBC) programme, is an appropriate instrument for addressing the problems of the border regions with the CEECs. The specific design of Interreg for the new programming period has not been decided, but it will leave sufficient flexibility to meet the needs of the border regions, as the Member States may propose the regions to be covered and the projects to be supported. Thus, while border regions will be particularly affected by enlargement of the Community, the structural policy instruments proposed in Agenda 2000í (1) provide sufficient scope and flexibility to address these issues. (1) COM(97) 2000. (98/C 304/139) WRITTEN QUESTION E-0397/98 by Nikitas Kaklamanis (UPE) to the Commission (24 February 1998) Subject: Laundering of Illegal Funds in Northern Cyprus Northern Cypress which is occupied by Turkey has become a financial centre for international crime. Reports have appeared in the European press to the effect that the occupied territory of Cyprus has become a paradise for illegal trafficking in drugs, chemical wastes, weapons and illegal immigrants. In the last 1/2 years alone 18 new casinos have been opened in Northern Cyprus. Over the last three or four years 36 offshore banks and 29 bank agencies have been established there. These establishments were used to launder funds from illegal trafficking from heroin, weapons, chemical wastes and illegal immigrants towards Europe. What action does the Commission intend to take on the information which has recently come to light with a view to remedying this situation which is in fact under the control of a country, Turkey, associated with the EU under a customs agreement? Answer given by Mr Van den Broek on behalf of the Commission (6 April 1998) The Commission does not have specific information on the alleged illicit activities to which the Honourable Member refers. The Commission recalls its support for progress towards a just and viable solution to the Cyprus problem and towards Community accession and trusts that this will help create conditions in which such issues can be addressed effectively