Divided Cyprus
A referendum April 22, on the adoption of UN plans to unify Cyprus, failed. The twin referendums where held by both Greek and Turkish parties. The Greek Cypriot community rejected the plan while Turkish Cypriots accepted it. Cyprus has been divided for some 30 years, since 1974, and the referendum was seen to be a unique opportunity to reunite the Mediterranean island just before EU accession.

The European Commission expressed its disappointment in Greek Cypriots but “respects the decision of people,” while– on the other hand – it congratulated the people Turkish on their desire to attain peace and unity between the two areas. Further economic support of the northern Turkish part of the island is being discussed by the European Commission. The new situation will be discussed in Luxembourg among the Council of Ministers in May.

“Among many reasons, why Greek Cypriots did not accept the referendum was unanswered security issues,” explained George Chacalli, Cyprus ambassador to Hungary, adding that “we are making a very keen effort to find a solution, since we do not accept the current situation. As a result the Cyprus initiated renegotiations on April 27 on proposals to make Turkish Cypriots beneficiaries of the positive effects of the accession.”

Flying cheap
Wizz Air, the first Hungarian low-cost airline will begin flights to seven European destinations with29 routes per week and fares as low as HUF 1,000. “Today’s announcement about flights from Budapest makes me proud, not just because I am Hungarian,” said József Váradi, Wizz Air CEO. “Wizz Air is a company staffed by dedicated professionals who have turned the dream of creating a new airline into a reality in less than 12 months.” Hungary’s EU accession and pre-summer tourist season contributed to the inflow of new discount airlines including Wizz Air, Norwegian Air Shuttle and EasyJet. With the invasion of new airlines, existing companies have not only widened services but lowered prices. With the introduction of low cost airlines the tourist market segment will experience growth, according to economic experts, and will contribute to an increase in Hungary’s GDP.

The new phase of Suzuki
Japanese automotive giant Suzuki will invest HUF 60 billion in 2004 in Esztergom, eastern Hungary, launching the second phase of the company’s “New Renaissance” program, an investment initiative that started in 2003. The first phase of the program, a HUF 100 billion investment, consisted of the re-development of Suzuki’s Wagon R+ and Ignis vehicles. The second and new phase aims at the standardized production of Suzuki’s new model, the “,New Concept Car.” With the investment, a 55,000-meter warehouse will be built and 400 new jobs created, with a manufacture capacity increase that will allow the firm to produce 150,000 cars by the end of 2004, resulting in a doubling of local export production.

Thailand’s troubled south
Thailand’s Prime Minister, Thaksin Shinawatra, cancelled a scheduled official visit to Hungary in early April citing the alarming security situation in Thailand. Violence further escalated in late April when 108 men were killed during a flare-up of violence in the country’s Muslim south. The deadly raids took place as groups of young men launched attacks on 10 security checkpoints throughout Yala, Pattani and Songkhla provinces in a bid to seize weapons and ammunition.
The country is split over who is responsible for the attacks. Government officials blame gangs of drug dealers and contraband smugglers, but also concede that separatist Islamic movements cannot be ruled out. Muslim unrest in southern Thailand began in early January but the bloody attacks remain the worst episode in the recent months. Some analysts say that Thailand’s recent economic boom bypassed the three provinces while investment incentive and development programs have excluded Muslims.

“It is a compound problem – from economics to religion, and cannot be reduced to just one factor” said Thailand Ambassador to Hungary Tawatchai Piyarat. ”The government has been rebuilding intelligence networks in the area since January and has the situation under control.”

A new era, a new government
A day after Poland’s accession into the EU, Polish President Aleksander Kwasniewski appointed a new center-left government, led by Prime Minister Marek Belka. Leszek Miller, the former prime minister, resigned after stating that his main role of carrying Poland to the EU was competed.

Belka, a member of the Democratic Left Alliance (SLD) still faces challenges associated with the ongoing political crisis in Poland. Starting his term, Belka declared that his government’s main priority will be to deal with growing unemployment.

EU brings new trans-Atlantic initiatives
The Hungarian-American Chamber of Commerce in Boston launched a new initiative to further strengthen Hungarian and US trade ties. The initiative is aimed at promoting Hungarian products and innovative services for entry into the US market. The Boston chamber recently hosted a conference where 40 US companies explored potential investment in Hungary, attended by Hungarian Ambassador to Hungary András Simonyi. Zsófia Lengyel, managing director of the program, explained that the main object of the chamber is to emphasize Hungary’s economic benefits as a new EU member to US companies. “I am convinced that many businesses will want to test the waters, since there is no risk involved,” said Lengyel, “Many of the companies that we saw were interested in establishing manufacturing activities in Hungary, while others were curious about products and services.”

EU representation launched
Hungary’s accession to the European Union meant that the mission of the European Commission’s Delegation to Hungary has ended. The delegation was replaced by the Representation of the European Commission, an institution whose major task is communicating the European Commission’s policies, actions, events and opinions to the Hungarian public. The Phare program, the EU’s main financial channel for technical cooperation with Central Europe, will continue to work in Hungary for a limited time.