Cyprus’ Accession to the Eurozone and the Reunification of the Island’s Economy
Cyprus’ Accession to the Eurozone and the Reunification of the Island’s Economy

Summary/Abstract: The paper addresses issues pertaining to the accession of Cyprus to the Eurozone and the reunification of the economy of the island-state. Within this framework the performance of the economy of Cyprus, both in the southern part (“government-controlled areas”) and in the northern part, are examined. The authors also examine the conditions for a successful participation in the Eurozone following the introduction of the Euro in January 2008, and evaluate the progress toward real convergence. Particular attention is given to the German experience of reunification, with a view to drawing relevant and useful lessons for Cyprus, as well as to issues of political economy concerning the accession to the Eurozone and the challenge of reunification. The last section summarizes the main points, makes policy recommendations and suggestions for further research.

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