ANKARA- TEPAV explained that the adoption of the Direct Trade Regulation to be discussed by the European Parliament on June 10^th can be a significant step in terms of both the solution of the Cyprus problem and the lifting of the barriers beyond Turkey's EU membership.

Policy note with the title "Direct Trade Regulation: An Exit Strategy for All Parties?" prepared by TEPAV EU Institute Director Nilgün Arısan Eralp is published. The note reminded that the Direct Trade Regulation is being discussed in the European Parliament and said: Parliament's "Conference of Presidents" will discuss the issue on 10th of June 2010. If the European Parliament adopts the regulation, then the Council of Ministers has the right to accept it with qualified majority as the views of the legal services of EU institutions are not binding. Hence the ball would be in the court of the member states."

The note maintained: "What is hoped for and expected from Member States is to grasp the fact that under the existing conditions "Direct Trade Regulation" seems to be the only point of exit from the current complicated impasse. The note continued:

"The head of the Socialists group in the European Parliament, Martin SCHULZ, has said that the implementation of the regulation will increase the competitiveness of the North Cyprus economy, narrow the prosperity gap between the two communities in Cyprus and "make the solution of the Cyprus problem easier" by integrating the North Cyprus economy into the EU

The adoption of the Regulation would also enable Turkey to open its ports and airports to Cyprus as has been declared several times by Turkish officials. This would not only put Turkey's accession negotiations back on track to a great extent, but also facilitate the mutual trade and hence the establishment of an environment of mutual trust for all the parties involved. This would also remove the great disillusionment of Turkish Cypriots vis-a-vis the EU."

The note underlined that the prosperity gap between the two communities in Cyprus is generally accepted to be a major impediment against a lasting settlement on the island and emphasized the importance of the integration of Northern Cyprus with the world and the EU economy in order for the region to secure a sustainable economic development and in order to catalyze a comprehensive resolution. The note said:

"Hence, it seems that the EU is on the brink of a very critical decision that has the potential to bring an end to the stalemate observed both in the "Cyprus Problem" and Turkish-EU relations. If the EU member states who want a just, sustainable and comprehensive solution in the island, as well as a fair accession negotiation process for Turkey, would adopt the regulation by "taking into consideration all relevant factors", then they would prevent yet another "strategic mistake"9 and would not cast a shadow to the "peace project nature" of the Union.

Furthermore, for those who question whether it is reasonable to expect so much from only a "direct trade regulation", the appropriate answer would be "then whey the founding fathers of the EU initiated the 'the ever closer union' from integration of markets?"