EU accession, membership and the Euro. A survey of senior executives in Cyprus, July 2002

This report is based on a poll conducted over a ten day period from June 28-July 8 2002. The primary purpose of the survey was to gain an insight into how senior executives of large Cyprus-based companies perceive the effect of accession and membership of the EU on their businesses and on other businesses on the island, and gauge the preparedness of companies for the eventual introduction of the euro.

The survey found that the majority of senior executives feels that the EU accession process had affected their business moderately or little. A third of respondents stated that it had had a big or enormous effect on their operations. 11% stated that it had had no effect whatsoever.

Regarding the effects of EU membership on their companies, the majority of respondents were optimistic that membership will be good (43%) or very good (26%) for their business. Results from the survey also provided some clear indication about what is expected to happen to the Cyprus economy after accession. Most respondents stated that they felt that membership would have a bad or very bad effect on agriculture (60%) and industry (66%). However, on the positive side, membership is expected to have a good or very good effect on tourism (88%), the retail sector (60%) and financial services (69%). Such positive views were also apparent, but to a lesser extent, for the general business sector where 43% thought that it would have a good or very good effect and a further 43% said that it would have a neutral effect.