Address by
the President of the Republic,
Mr Nicos Anastasiades, at the
Hamburg Shipping Event
It is a great pleasure for me to address this shipping event in
Hamburg, one of the most thriving maritime cities in the world.
Before I proceed further, I would like to express my sincere
appreciation to the First Mayor of Hamburg, Mr Olaf Scholz, for our very
constructive meeting earlier today, as well for hosting me and the entire
Cypriot delegation in Hamburg.
In addition, I would like to thank the Cyprus Shipping Chamber, for
organising this event. From a total of 50 members of the Cyprus Shipping
Chamber, 21 German ship-management, ship-owning and chartering companies are
based in Cyprus. Knowing the longstanding links of the Chamber with the German
Ship owners Association (“VDR”), I gladly accepted the invitation to address
this prestigious shipping gathering, as I felt that this would be an excellent
opportunity for even closer cooperation between the German and the Cypriot
shipping communities. I hope that this event will be the first of many to
follow.
Last but not least, I express my appreciation to Berenberg Bank for
hosting this event at their magnificent offices and for their warm
hospitality.
Cyprus’s constant striving for excellence in the field of merchant
shipping has been naturally facilitated by its almost ideal geographic location
at the crossroads of three continents, Europe, Asia and Africa.
Distinguished friends,
Over the years, Cyprus managed to attract many shipping entrepreneurs
and to develop the country into a fully-fledged shipping centre, combining both
a sovereign flag and a resident shipping Industry, which is renowned for its
high quality services and standards of safety and operation. This prompted many
European, including German entrepreneurs, to establish local companies with
fully fledged offices in Cyprus, from the early 1970s.
In turn, this created the beginning of the mutually beneficial
bilateral shipping relations between Cyprus and Germany, a relationship which
has been enhanced through the years and still strongly exists today, allowing
German-owned companies, to make good use of both jurisdictions.
As Cypriots, we readily admit that German shipping entrepreneurs who
set up offices in our country and some of whom are here today, facilitated the
enhancement of the shipping technical know-how in Cyprus, which in turn,
contributed substantially to the development of Cyprus as a fully-fledged,
competitive and modern maritime centre, competing on a global scale. I wish to
express my satisfaction that according to DMS records, 45 German based companies
currently own or operate 167 vessels under the Cyprus flag with a 1,945,588,
Gross Tonnage, which represents 9% of the Cyprus fleet in terms of Gross
Tonnage.
The new, fully revised and upgraded Cyprus shipping taxation system
constitutes perhaps the most important recent success for Cyprus shipping where
again, the technical know-how of the German-owned shipping companies based in
Cyprus was fully exploited. T he official approval of the new Cyprus “Tonnage Tax System” by the
European Commission in 2010, ensures the viability of the Cyprus Shipping
Register and the Cyprus shipping industry in the years ahead.
With the new shipping taxation system, Cyprus covers fully, in their
most modern form, the three main shipping activities that are offered today in
international shipping, namely, ship owning, ship management, including crew
management, and the chartering of vessels.
The new “Tonnage Tax System" is in its own right, an innovative and a pioneering piece of legislation, which
updates existing and offers additional financial incentives to shipping
activities in Cyprus, in full compliance with the relevant EU shipping taxation
framework.
In our efforts to make Cyprus an even more attractive jurisdiction
for international business, as well as to enhance further the economic and
commercial relations of Cyprus with Germany, the Cyprus-Germany Agreement on the
Avoidance of Double Taxation, which was recently renegotiated and also covers
shipping taxation matters, such as employment of German seafarers by Cyprus
shipping companies, is proof of the excellent working relations that exist
between the two countries.
Ladies and Gentlemen,
We know well that you in Germany have followed closely the adverse financial developments
that took place in Cyprus last year, as a result of the banking upheaval we
experienced in March 2013.
Today, a year on since the Troika Agreement, I am pleased to tell you
that, the Cyprus economy is well underway on a path to full recovery. We have
repeatedly and in a timely manner met the obligations we have undertaken
vis-à-vis the Troika, for structural improvement changes in both the Cyprus
banking system as well as public spending. Both our lenders as well as numerous
financial rating agencies have slowly, but continuously, in the last few months,
granted Cyprus a positive recovery rating.
Last week, we even issued a 6-year Government bond through private
placement, which will be listed on the London Stock Exchange, as part of our
efforts to return to the international financial markets in 2015. Any few
remaining bank transaction restrictions which were imposed last year will be
lifted within the next few months, thus allowing Cyprus banks to operate again
without any hindrances but, to the contrary, under a new, much better structured
and controlled regime.
In making these quite positive achievements in such a short period of
time, the shipping industry in Cyprus played an important and invaluable part.
On this matter, I would like once again to publicly thank the Cyprus
Shipping Chamber for launching a “Positive Promotion Campaign” in Cyprus and
abroad during the difficult period that our country went through last year, in
an effort to project Cyprus as a reliable maritime centre with a competitive and
EU-approved shipping taxation system.
More relevant to our German audience today though, and I once again
stress this point, is that the shipping operational and taxation infrastructure in Cyprus and
the Cyprus flag remain intact, fully operational and very competitive.
Cyprus flag users remain loyal and actively support the efforts to
reinforce Cyprus shipping in order to continue its significant contribution to
the Cyprus economy, which forms an impressive 7% of Cyprus’ Gross Domestic
Product. Today’s event organised by the Cyprus Shipping Chamber, we believe,
acts as a “vote of confidence” by the resident shipping industry in Cyprus to
the Cyprus economy.
The Cyprus Government acknowledges now, more than ever,
the important role that the shipping sector plays in the Cyprus economy.
Foresight, proper planning and hard work are indispensable in our mission to
preserve Cyprus’ leading edge. At the same time, the Cyprus Government is well
aware of the fact that the local shipping sector operates in a continuously
evolving, highly competitive global environment which in turn requires
stability, an essential ingredient for long-term planning and investment, as
well as close cooperation with the shipping Industry.
For these precise reasons, our Government is determined
to introduce those mechanisms necessary to protect this important sector, as
well as to develop and enhance it much further.
In this respect, my Government has committed itself to creating a top
political position exclusively dealing with the shipping industry, in an effort
to upgrade the Cyprus maritime administration even more. The relevant Bill has
already been submitted to Parliament.
Undoubtedly, the geopolitical realities in our area are rapidly evolving and
Cyprus is claiming its rightful place in the centre of these developments. New
political and economic balances are emerging, connected also with the discovery
of energy reserves in our region. The discovery of hydrocarbons in our Exclusive
Economic Zone (EEZ) creates new prospects for our country and our national
economy. These new developments widen also the horizons of our shipping
industry, creating relevant synergies. The discovery of hydrocarbons offers an
opportunity for the development of a whole new sector within the shipping
industry in Cyprus, to meet the needs of these new offshore activities.
Cyprus can develop into an important energy center in
the Eastern Mediterranean. New and vibrant shipping and energy projects can be
launched and the relevant Government policies will definitely include this new
exciting prospect, during development. In this respect, we would again welcome
involvement and technical expertise from German shipping and energy
entrepreneurs either on their own, or through joint ventures with Cyprus-based
companies.
Nonetheless, we should also bear in mind that the free
movement of goods and raw materials worldwide is essential for the economic
development of any country. In connection to this, the lifting of Turkey’s
illegal restrictive measures against Cyprus shipping, in force since 1987, would
certainly have a positive economic and political impact.
As you are aware, Cyprus constitutes a fully EU approved “Open
Registry”, 85% of which belongs to Northern European beneficial interests. This
trade restriction therefore, adversely affects European interests themselves.
Our strong commitment is to seek a solution in line with the relevant EU laws and regulations, by
exerting maximum pressure on Turkey in this direction, which in turn
will lead to growth prospects for EU shipping in general.
Furthermore, taking into account that a new round of negotiations has
recently been initiated with regard to the solution of the Cyprus problem and,
whilst the efforts towards the lifting of this illegal ban will continue and be
further intensified at the EU level, similar parallel efforts will also
continue, separately as a tangible Confidence Building Measure during the
ongoing political negotiations.
Closing, I wish to express the State’s appreciation to all those who
continue to trust and support the Cyprus flag and Cyprus shipping. As one of the
main pillars of the new development model of Cyprus’ national economy, I would
like to reiterate my Government’s commitment to introducing those necessary
mechanisms that will raise Cyprus’ position even higher as a shipping centre of
exceptional importance, with a fully developed infrastructure.
Equally important, I personally consider the existing
cooperation between our two countries on shipping matters, as well as the
long-standing relations between the two professional national bodies
representing our respective shipping Industries in Europe and
internationally.
Whilst expressing my sincere thanks and congratulations
to all those who contributed in the organisation of this event, I am looking
forward to such similar shipping events in the future. Both myself, my
Government colleagues here with me today, as well as our closest collaborator in
shipping matters, the Cyprus Shipping Chamber, we are all at your disposal now
for any comments, suggestions or queries you might have on the main issue of our
event today, namely the closer cooperation between Cyprus and Germany on
shipping.
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