Cyprus a Full Member of the European Union: An Overview Patterns in Neighboring Areas

This paper discusses the implications of the Cyprus’ relations with the European Union. After a short review of recent developments in the Cyprus’ economy and the evolution of the country’s relations with the EU, the paper attempts an evaluation of the implications of the customs union agreement for the Cyprus’ economy. Then, the transfer of resources between Cyprus and the EU, as well as the impact on the trade balance and the major sectors of the economy (agriculture, manufacturing and the public sector0 are shortly evaluated. Finally, the macroeconomic implications are discussed and some tentative conclusions are drawn.