Why Cyprus' accession to the Schengen Area is the only way ahead for the business world

The only way forward for the business world of Cyprus seems to be the country’s integration into the Schengen Area, something the sector is in favour of and which the government is also working towards.

With Cyprus, along with Ireland, currently the only EU member states that are outside the Schengen zone, the President of the Republic, Nikos Christodoulides, has recently hinted at Cyprus' path towards accession on a number of occasions.

He has been emphasising the multiplying benefits that such a development would bring to the local economy as it would be acting as a strengthening factor for attracting investments to the island and for the further development of business activity.

As President Christodoulides recently stated, the Republic of Cyprus is within 2025 expected to be technically ready and have done everything it needs to do in order to join the Schengen zone.

Speaking to InBusinessNews , CCCI Secretary General Philokypros Roussounides and OEB Director General Michael Antoniou, emphasise the necessity of Cyprus' integration into the Schengen zone, while simultaneously highlighting the multiple and horizontal benefits that this will bring to businesses and the wider Cypriot economy.

As both point out, this will be - among other things - a development that will enhance the attractiveness of our country as an investment destination.

Roussounides: All Cypriot businesses will benefit

Speaking to InBusinessNews , the CCCI Secretary General, Philokypros Roussounides, stressed that the Chamber is in favor of the Republic of Cyprus' accession to the Schengen Area.

As he explained, "We believe that the free movement of people, goods, etc., facilitates business and certainly strengthens trust in international collaborations, which are fundamental pillars for the economic development of Cyprus."

"In addition," he added, "Cyprus's accession to the Schengen zone will enhance the attractiveness of our country as an investment destination and business activity in general."

At the same time, according to the Secretary General of the CCCI, as a result of joining the European institutional mechanism, trust in our country will be strengthened, while simultaneously contributing to improving its image as a stable environment for economic activity.

This is something which, as he indicated, the President of the Republic has been highlighting during his contacts in the US in the context of the rebranding of Cyprus.

“In addition to the above,” Roussounides emphasised, “as a Chamber, we believe that Cyprus' accession to the Schengen zone can also function as a multiplier of opportunities for our country and strengthen our position as a regional headquarters hub (for the establishment of headquarters by foreign companies), since the physical presence of corporate executives within the European Union will be facilitated, without bureaucratic obstacles.

Even persons from third countries through Cyprus, with a visa, will be able to move freely within the EU. This also helps the startup and digital innovation sector."

According to the Secretary General of the CCCI, some concerns that may have existed regarding the control of the Green Line now appear to be under management.

"Therefore," he pointed out, "we believe that, in any case, it will be proof of Cyprus' full alignment with the European acquis, the European family to which we belong."

Asked to say which sectors of the economy will benefit most from Cyprus' accession to the Schengen zone, Roussounides noted that the positive impact will be horizontal and will generally enhance the prestige of Cypriot businesses or businesses based in Cyprus.

"And certainly," he continued, "it is a strong advantage for an international rebranding of our country as a safe and attractive destination for investment and business activity," to conclude by emphasising that the accession of our country to the Schengen zone will benefit all Cypriot businesses and businesses located in Cyprus.

Antoniou: Non-integration into the Schengen zone is a negative springboard

On his part, the Director General of OEB, Michael Antoniou, also speaking to InBusinessNews, stressed that Cyprus' accession to the Schengen zone is very important, because now - as he indicated - the movement of natural persons will take place without restrictions, without formalities and without identification checks.

"This, we believe, constitutes a great convenience for those traveling to countries within the zone. Therefore, we have been waiting for a long time - years - for the completion of the decisions and procedures so that Cyprus can also join the Schengen zone," he added, noting that "let's not forget that we are the only (EU member) country, along with Ireland, that is outside the zone, which is negative for our country."

And this, as he further explained, since through Schengen, you essentially gain freedom of movement without any formalities throughout the territory of the European Union. "We consider this to be a significant, hugely positive situation that will be created by Cyprus' accession to the Schengen zone," he underlined.

Continuing, Antoniou reiterated that the fact that Cyprus is outside the Schengen Area also constitutes a disadvantage for the country at the investment level, asking the following rhetorical question: "Since an investor has the option to invest in another EU country, why should he choose Cyprus, which is the only one that is not a member of the Schengen zone?"

"Therefore, you start with a negative springboard, which we do not want," the Director General of OEB pointed out in this regard, adding that the fact that Cyprus is outside the Schengen zone removes or even limits potential investment opportunities in Cyprus.

Asked to say which sectors of the economy would benefit most from a potential accession of Cyprus to the Schengen zone, the Director General of OEB stated that the positive impact would be horizontal, with significant benefits, both for business and for the country more broadly.

"Whatever sector someone serves in and who intends to have a physical presence in Cyprus, either himself or his employees, they will have the same reasons to operate in Cyprus when our country joins the Schengen zone," Antoniou concluded.

(Source: InBusinessNews)