BIOGRAPHIC INFORMATION ON NEW ECONOMIC-RELATED

UNCLAS NICOSIA 000930

SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD EAGR PGOV CY
SUBJECT: BIOGRAPHIC INFORMATION ON NEW ECONOMIC-RELATED
MINISTERS; CONTINUITY OF POLICIES DESPITE NEW FACES

REF: Nicosia 882

(U) This cable is sensitive but unclassified. Please
handle accordingly.


1. (SBU) Summary: Reftel reported on the political
implications of the June 8 government reshuffle. Among
the economic-related ministers, only Communications and
Works (Haris Thrassou) and Minister of Finance (Michalis
Sarris) kept their jobs. This cable provides biographic
information on the new Ministers of Commerce, Health and
Agriculture, who were sworn in on June 13. All lack
relevant government experience or their own power base and
thus are expected, at least for the near term, to largely
follow the policies set forth by their predecessors. End
summary.

Commerce, Industry and Tourism
--------------

2. (U) Antonis Michaelides, Minister of Commerce,
Industry and Tourism: Michaelides was born in Nicosia in

1948. He studied Law in Athens and business
administration at the London School of Economics and the
Polytechnic of Central London. On becoming minister, he
resigned as general manager and member of the board of his
family's business, the MPM Group, one of the largest and
most successful trading organizations in Cyprus. The MPM
Group represents mainly European brands such as Peugeot
cars, L'Oreal cosmetics, Delsey luggage, Continental Tires
and Swatch. It also represents several U.S. products,
including Valvoline, cross pens, Sea Ray yachts and Baja
Boats. In 2003, the Group expanded into Greece.
Michaelides has served on the Boards of the Cyprus
Football Federation and the Development Bank. He is
currently on the Boards of the Association of Importers of
Automobile Vehicles and of the Cyprus Automobile
Association. He is married to Nino and has two children.


3. (SBU) Comment: Michaeliedes is considered to be a very
shrewd businessman, who is known for his personal loyalty
to President Papadopoulos. Lacking previous public
service experience and his own power base, Michaeliedes is
expected to continue most of his predecessor's (Iorgos
Lillikas, now Minister of Foreign Affairs) policies
including backing French WTO agricultural positions in
exchange for France's support on unrelated political
issues. His ministry will oversee several large planned
tenders over the coming year including the construction of
a half billion dollar energy center -- which will contain
an LNG terminal and storage facility -- and the auctioning
of exploratory rights for Cyprus's possible deep sea oil
and natural gas reserves. End Comment.

Minister of Health
--------------

4. (U) Haris Charalambous, Minister of Health:
Charalambous was born in Kato Zodhia in 1951 and grew up
in Nicosia. He has an MSc in Mechanical Engineering from
a university in Bulgaria. On his appointment, he resigned
as general manager of Laikon Kafekoption (People's Coffee
Grinding),where he has worked for 29 years and as Vice
Chairman of the Board of the Electricity Authority of
Cyprus (EAC). He also served from 2000-2005 on the board
of Eurocypria Airlines. He has attended full-time courses
in Cyprus, the Netherlands, and the United States on
finance, accounting, computer science, and management of
food enterprises. He is married to Angela and has two
grown children.


5. (SBU) Comment: Charalambous with little or no
experience in health care will face a number of challenges
in his new position. His predecessor has hired an
international consulting firm to provide recommendations
on a complete overhaul of the Cypriot health care system.
The large pharmaceutical importers have recently banded
together to lobby for changes to the procurement, pricing
and registration systems that have led to significant
shortages of many drugs, including most new innovative
products. Charalambous is a member of and was appointed
by the Communist (AKEL) Party. He has a good track record
of helping to ensure a level playing field in tenders
involving U.S. companies. He was a member of the
EuroCypria board when it decided to lease Boeing aircraft
and Vice Chairman of the EAC when it chose a consortium
including General Electric to construct the fourth unit at
the Vasilikos Power Station. (Note: the EAC and the GE
consortium will begin negotiations on the final details
June 19 with the intent to sign a contract by July 5. End
note).


6. (SBU) Comment continued: Charalambous, who graduated
from a university in Bulgaria, may find it difficult to
cooperate with opposition MP Eleni Theocharous, Head of
the Parliamentary Health Committee. Theocharous recently
attracted the wrath of AKEL by suggesting on national
television that graduates of Bulgarian universities
generally made their way through college by bribing their
professors with goats. End Comment.

Agriculture, Natural Resources and the Environment
-------------- --------------

7. (U) Photis Photiou, Minister of Agriculture and
Natural Resources and the Environment: Photiou was born
in Larnaca in 1960. He graduated from the American
Academy and obtained a degree in Economics from Eastern
Michigan University. Photiou worked with various
international accounting and auditing firms and with the
Ministry of Finance at the Inland Revenue Department.
Since 1992, he has worked in the private sector as a
Certified Accountant and Business Consultant. He has
served as a member of the Board of the Electricity
Authority (1993-1999) and the Board of the Cyprus Tourism
Organization (2000-2003). In 2003 he was appointed
Chairman of the Cyprus Tourism Organization. He joined
President Papadopoulos' Democratic Party (DIKO) at a young
age. He is currently a member of the Central Committee
and the Executive Bureau of the party. He is married and
has three sons.


8. (SBU) Comment. Photiou is another Papadopoulos
loyalist who lacks his own power base. In three years as
head of the all-important Cyprus Tourism Organization,
Photiou was widely regarded as an adequate if not
spectacular manager. With little experience on
agricultural issues, how well he will perform in his new
job remains unclear. End Comment.

MILLER