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Main news of the issue (Foreign no.341)

New EU members to enter Schengen at end of 2007

Last week, the European Commission approved and submitted for consideration by the European Parliament and the EU Council of Ministers a proposal for EU member states to adopt a unified visa code, which provides for uniform conditions and procedures for issuing visas across EU countries. This concerns, in particular, short-term and transit visas, as well as airport entry visas.

Furthermore, Vice-President of the European Commission Franco Frattini confirmed that the date for expanding the Schengen visa area remains the end of 2007. In May, the Estonian representation of the European Commission said that the accession of Estonia and other new members to the Schengen Agreement could be delayed by six months due to problems detected in the implementation of the second-generation information system. At a press conference in Tallinn on Tuesday, Frattini stated that the timeline for expanding the Schengen visa area and activating the information system remains unchanged, adding that Estonia cannot be faulted in its preparations for joining Schengen.

EU strips Luxembourg of tax breaks

The European Commission has deemed illegal the existence of a number of tax breaks for companies registered in Luxembourg. The country provides these benefits under a special law on financial holdings from 1929, according to a statement from the European Commission press service.

Thanks to its low taxes, Luxembourg has traditionally been used by many foreign companies as an offshore zone within the EU. In 2005, the country became the leader in attracting foreign direct investment in the EU, with a figure of $90 billion. Registering in Luxembourg, on the one hand, allowed companies to avoid paying a number of taxes, and on the other, did not raise suspicions, unlike companies registered in Cyprus or the Isle of Man.

Finland drafts law on protecting victims of human trafficking

The Finnish government has drafted a new law on protecting victims of human trafficking. According to the press service of the Finnish Ministry of the Interior, the new law provides for issuing foreign nationals who have become victims of human trafficking in Finland a temporary residence permit for a period of six months. The permit will be granted to those who are willing to cooperate with law enforcement authorities in the investigation of the crime and may be extended if necessary.

Furthermore, a residence permit may be issued without a requirement to cooperate with the police if the victim is in danger. The law also provides a period during which the victim of human trafficking is given time to recover and decide on cooperation with law enforcement. Depending on the situation, this period may range from one to six months.

"The new draft law aims to increase the effectiveness of the fight against human trafficking and the arrest of criminals. It will give victims of human trafficking the opportunity to break free from the networks of organized crime and avoid returning to the criminal business," states the press release from the Finnish Ministry of the Interior. The law is expected to come into force on July 31 of this year after approval by the president.

Prague City Hall to finance support for national minorities

Next year, Prague will distribute financial aid among national minorities living in the Czech Republic. These are so-called grants that will financially support cultural, educational, social, or publishing activities of foreign societies and organizations.

This step by the Prague City Hall is intended to promote deeper integration of national minorities and help develop a multicultural environment in the Czech capital.

No room left for tourists in Cyprus

Taking a vacation in Cyprus in the near future will be problematic. The island's hotels are 100% full. But they are mostly filled with refugees from neighboring Lebanon. Resort Cyprus has become a transit point for tens of thousands of them. "We are at the peak of the summer season, and with the current flow of refugees, hotels are being filled almost instantly," laments Lefkos Fylaktides, director of the tourism department at the Cyprus Tourism Organization.

Since the start of the evacuation from Lebanon, about 25,000 people have been transited through Cyprus. Most of them are foreigners – Americans, Britons, Scandinavians, Russians. While waiting for the opportunity to fly home, these people spend one to two days on the island. Then they are sent home on night flights. Cypriot authorities have already turned to the European Union for help in organizing the transit of refugees to speed up the process.

According to the Russian Union of Travel Industry, refugees in Cyprus are being housed in hotels in the capital, Nicosia, and the popular resort of Larnaca. These are mostly city hotels located away from areas of mass tourist recreation. However, Lefkos Fylaktides does not rule out that sooner or later tourists will also have to make room. "In the early hours of July 21, only 400 hotel rooms were available across the entire island," he said. "So far, the authorities have the situation under control. But any emergency flow of evacuees from Lebanon will mean that no vacancies will be left at all." According to official information from Greek authorities, the evacuation of another 60,000-70,000 refugees from Lebanon is expected in the near future. But even that number is not final.

So far, according to the Cyprus Tourism Organization, no tourist has left the island earlier than planned. However, the number of people wishing to vacation in Cyprus has decreased. As reported by Irina Tyurina, press secretary of the Russian Union of Travel Industry, demand for tours there has fallen by 10-15% in recent days. In her view, the media are to blame for spreading information about the "occupation" of the island by Lebanese refugees. In reality, as mentioned above, it is not only Lebanese but also citizens of other countries not involved in the conflict.

Tour operators believe that the reason for the decline in demand for the Cyprus destination is not the refugees, but the proximity of Cyprus to the conflict zone. “The emotional effect is at work,” says Alexander Tugolukov, a representative of a tour company. And we can expect demand to recover only after the explosions in Lebanon stop.