EUROPEON UNION

Cyprus will join the E.U. 1st may 2004. The benefits of this are considerable. Cyprus already exports 50% of its products to the E.U. and as of May next year the increase of these exports and the income from them will be substantial. Cyprus can expect to be transformed into a regional business center as it has a Democratic system of governance, a free market, excellent telecommunications with direct dialing to over 200 countries, a favorable tax regime, bilateral investment agreements, double tax treaties and a strategic location at the crossroads of three continents.

The E.U recognizes that Cyprus has a good stable functioning market economy and will be a competitive force within the union. Whilst adoption of the Euro and participation in the Economic and Monetary Union (EMU) is expected to lower inflation and interest rates, resulting in increased investment and a higher growth rate.

Investment in property has already risen over the last few months and is expected to increase further as we approach 2004 and beyond. As of next May, with Cyprus’ full membership, the property investment market is expected to increase considerably.

With a booming tourism industry and a strong stable economy Cyprus is looking on the bright side as always, which can only lead to an increase in the economy throughout all sectors