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Draft Annex I:  Constitution of Cyprus


Part III: The <common state> and the <component states> 


Article 12                Competences and functions of the <common state>


1.            The <common state> shall, in accordance with this Constitution, sovereignly exercise legislative and executive competences in the following matters:


a.       External relations, including conclusion of international treaties and defence policy;[11]

b.       Relations with the European Union;

c.       Central Bank functions, including issuance of currency, monetary policy and banking regulations;

d.       <common state> finances, including budget and all indirect taxation (including customs and excise), and <common state> economic and trade policy;

e.       Meteorology, aviation, international navigation and the continental shelf and territorial waters of Cyprus;

f.         Communications (including postal, electronic and telecommunications);

g.       Cypriot citizenship (including issuance of passports) and immigration (including asylum, deportation and extradition of aliens);

h.       Combating terrorism, drug trafficking, money laundering and organised crime;

i.         Pardons and amnesties;

j.          Intellectual property and weights and measures; and

k.       Antiquities


2.            Incidental to the above competences and to other provisions of this Constitution, the <common state> shall exercise legislative and executive competences over <common state> administration (including public service, <common state> police, as well as its independent institutions and officers); <common state> elections and referenda; offences against <common state> laws; administration of justice by the Supreme Court; <common state> property, including public works for <common state> facilities and expropriation; and like matters which are clearly incidental to the specified powers of the <common state>.

3.            The <common state> shall, as appropriate, entrust the implementation of its laws including the collection of certain forms of taxes, to <component state> authorities.

4.            Obligations of the <common state> under international treaties shall be implemented by the <common state> or <component state> authority which enjoys legislative competence in the subject matter to which the treaty pertains.

5.            The <common state> shall confer upon the <component states> a portion of its revenue from indirect taxation as provided for by special majority law.


Article 13                Competences and functions of the <component states>


1.            The <component states> shall, within the limits of this Constitution, sovereignly exercise within their territorial boundaries all competences and functions not vested by this Constitution in the <common state>.[12]

2.            The <component states> shall have primary criminal jurisdiction over offences against <common state> laws, unless such jurisdiction is reserved for the Supreme Court of Cyprus by <common state> legislation.

3.            The police of a <component state> shall be stationed and operate exclusively within that <component state> and shall be responsible for the protection and enforcement of law and order and public safety within that <component state>, including offences against <common state> laws, without prejudice to the functions of the <common state> police and the Joint Investigation Agency.  A Constitutional Law shall regulate the strength and equipment of <component state> police and a Cooperation Agreement between the <common state> and the <component states> shall provide for cooperation on police matters.


Article 14                Cooperation and coordination


1.            Where expressly provided for in this Constitution, legislative matters may be regulated in a manner binding upon the <common state> and the <component states>, through Constitutional Laws.  Such laws shall be approved by the legislatures of the <common state> and the <component states> in accordance with procedures set down in a Constitutional Law and shall have precedence over any other <common state> of <component state> laws.

2.            The <component states> may conclude agreements with each other or with the <common state>. Such agreements may create common organizations and institutions on matters within the competence of the parties.

3.            The <component states> shall strive to coordinate or harmonize their policy and legislation, including through agreements, common standards and consultations wherever appropriate, in particular on the following matters:


a.       Tourism;

b.       Protection of the environment and use and conservation of energy and natural resources, including water;

c.       Fisheries and agriculture;

d.       Industry and commerce, including insurance, consumer protection, professions and professional associations;

e.       Zoning and planning, including for overland transport;

f.         Sports and education;

g.       Health, including regulation of tobacco, alcohol and drugs, and veterinary matters;

h.       Social security and labour;

i.         Family, company and criminal law; and

j.          Acceptance of validity of documents.


4.            Either <component state> or any branch of the <common state> government may initiate the coordination or harmonization process.

5.            Agreements on such coordination or harmonization shall be approved by the competent branch of the <component state> governments and, if <common state> participation is required, by the competent branch of the <common state>.

6.            The <common state> shall support, both financially and logistically, cooperative endeavours between the <component states> or between municipalities and villages located in different <component states>.

7.            The <common states> and the <component states> shall accept as valid documents issued by government authorities and educational, medical and other public service institutions.


Article 15                Joint Investigation Agency


There shall be a Joint Investigation Agency, comprising <common state> and <component state> police personnel and reporting to the Attorney-General.  Its composition and functions, as well as the strength and equipment of the <common state> and <component state> police, shall be regulated by Constitutional Law.


Article 16                External relations


1.            Cyprus shall maintain special ties of friendship with Greece and Turkey, respecting the balance established by the Treaty of Guarantee and the Treaty of Alliance and the Foundation Agreement.

2.            The <component states> shall be consulted on <common state> decisions on external relations that affect their competences.

3.            The <component states> may appoint representatives on commercial and cultural matters, who shall be accredited as part of diplomatic missions of Cyprus.

4.            The <component states> may also conclude agreements on commercial and cultural matters with authorities of States that have relations with Cyprus, provided that such agreements do not cause prejudice to Cyprus, the authority of the <common state> government, or the other <component state>, and are compatible with the European Union membership of Cyprus.

5.            In the exercise of the powers conferred by paragraphs 3 and 4 of this Article, the following procedures shall be observed:


a.       The <component states> shall use the channel of the <common state> ministry of foreign affairs for contacts at a political level with foreign governments; and

b.       The <component states> may have direct contacts with sub-entities or subordinate authorities of other states. In this case they shall inform the <common state> ministry of foreign affairs upon starting negotiations on any agreement with such authorities and continue to advise on the progress and outcome of such negotiations.


6.            A Cooperation Agreement between the <common state> and the <component states> on external relations shall regulate the implementation of this Article.


Article 17                Cyprus as a member of the European Union


1.            Cyprus shall be a member of the European Union.

2.            The governments of the <component states> shall participate in the formulation of the policy of Cyprus in the European Union.

3.            Cyprus shall be represented in the European Union by the <common state> government in its areas of competence or where a matter predominantly concerns an area of its competence.  Where a matter falls predominantly or exclusively into an area of competence of the <component states>, Cyprus may be represented either by a <common state> or a <component state> representative, provided the latter is able to commit Cyprus.

4.            Obligations of Cyprus arising out of European Union membership shall be implemented by the <common state> or <component state> authority which enjoys legislative competence for the subject matter to which an obligation pertains.

5.            If a <component state> fails to fulfil obligations of Cyprus vis-à-vis the European Union within its area of competence and Cyprus may be held responsible by the Union, the <common state> shall, after notification of no less than 90 days, take necessary measures in lieu of the defaulting <component state>, to be in force until such time as that <componentstate> discharges its responsibilities.

6.            Paragraphs 2-5 of this Article shall be the subject of a Cooperation Agreement between the <common state> and the <component states>.

7.            Amendments to the treaties on which the European Union is founded or acts of accession of any applicant states to the European Union which require ratification by all member states of the European Union, shall be ratified by Cyprus unless this is opposed by each of the legislatures of the <common state> and the <component states>.  The President or the Vice-President of the Presidential Council shall be entitled to sign the respective instrument of ratification and thereby bind Cyprus.

8.            No provision of this Constitution shall invalidate laws, acts or measures by the <common state> or the <component states> required by the obligations of European Union membership, or prevent laws, acts or measures by the European Union, or institutions thereof, from having the force of law throughout Cyprus.
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