Cyprus applies for Schengen Area Membership at a time when the Cyprus Investment Programme has drawn the scrutinizing eyes of the European Commission and general public.
Will the Schengen Area be expanding in the foreseeable future to welcome Cyprus?
We explore the importance of the Schengen Agreement and the European values of freedom of movement that it represents.
Nikos Christodoulides, Cyprus Minister of Foreign Affairs, announced on November 5th 2019 that Cyprus had submitted its application to join the Schengen Area in September. A positive development, as accession could bolster the reputation of Cyprus and make it more attractive to foreign investors seeking residency and/or citizenship solutions.
A Retrospective Look at the Schengen Agreement
Signed on June 14, 1985, this treaty symbolized the ‘borderless’ Europe that aligned with the sentiment of the continent at the time.
If we take a step back in history, this agreement was signed just a few years before the Berlin Wall fell and with it the antagonism and societal divides that borders bring.
The Schengen Agreement was initially only signed by 5 EU countries and has now evolved to include 26 countries. Germany and France historically led the way in instilling the concept of true freedom of movement and a ‘borderless Europe’.
By 1990 a protocol was put in place stipulating all the operating procedures of the Schengen Visa. A single database was established, the SIS or Schengen Information System – to promote further cooperation between member states’ immigration authorities.
It wasn’t until 1995 though those 7 EU countries actually abolished internal border checks and not until May 1999, 14 years after the agreement was first signed, that the Schengen Agreement became part of the EU’s legal framework.
One Man’s loss is Another Man’s Gain
For most European citizens today, we have been born and raised in a borderless Europe and could not fathom what a continent with hard borders would look like. Boarding a train from Paris to Barcelona feels just about as natural as getting on the metro to reach our office in downtown Paris.
Yet, what is taken for granted by millions, is a ‘luxury’ for many more who aspire to move seamlessly throughout the Schengen area. This area currently encompasses all EU member states except Bulgaria, Croatia, Cyprus and Romania, as well as Ireland and the UK who opted out, plus Iceland, Liechtenstein, Norway and Switzerland (EFTA Members).
Whilst in the contentious Brexit vote of 2016 many UK citizens risked their own right to ‘free movement’ in Europe in order to limit others’ free movement into their borders, the greater part of Europe still supports the concept of a ‘borderless’ Europe.
Read more: How Much of A Threat do Citizenship by Investment Schemes Pose to the EU?
Cyprus: Schengen Member to be?
In 1974 the Turkish invasion of Cyprus took place and since then, regardless of the ongoing political developments and involvement by foreign powers and the United Nations a solution has not been found to the island’s internal division.
This ‘divided island’ which has only had an operating border crossing with the northern part of the island since 2003, not only has this dilemma to manage when submitting their Schengen member application but also how they will practically handle internal borders with UK Sovereign bases on the island post-Brexit.
Will the EU respond favorably to the Cyprus application to enter the Schengen area? How have the other Schengen applicants fared in their approval process?
If we look at Croatia as an example, they submitted their request to the EU to join the Schengen area in 2015. By 2017 Croatia was granted SIS II access to bolster its law enforcement efforts. Since 2018 Croatia has had to comply with various technical requirements in order to be ‘Schengen ready’ and although there has been some resistance from Slovenia, on the 22nd October 2019, the European Commission supported Croatia’s accession to the Schengen Area.
Therefore, we anticipate that the path ahead for Cyprus may involve lots of tweaks and adjustments but in the foreseeable future it could receive the EC’s green light for accession.
Grey Clouds or Silver Lining
Cyprus is currently under a looming grey cloud of criticism as it recently revoked at least 26 citizenships granted to foreign investors under its “Cyprus Investment Programme” . This was as a result of a retrospective due diligence assessments of investor applicants from previous years.
But are these actually grey clouds or a silver lining?
On the whole, second citizenship immigration advisors need and in fact want more robust due diligence frameworks to be implemented. The majority of the investment migration industry wants to avoid having ‘undesirables’ on their book of clients.
Therefore, by revoking Cypriot passports previously granted to foreign investors, it signals that due diligence checks are in fact a serious matter. It sends a veritable warning to ‘undesirables’ who are considering applying to the Cyprus Investment Programme and fortifies the integrity and reputation of Cyprus.
We will have to wait and see whether the Cyprus’ Schengen application will in fact be successful in the foreseeable future and what further internal changes need to be implemented by the Cypriot government.
Yet in the long run this could both bolster the reputation of the island in the investment migration industry and draw in more qualified foreign investors seeking either Cypriot Permanent Residency permits or citizenship in Europe.
