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Due to its unique political condition, Turkish Republic of Northern Cyprus (TRNC) can directly become a member of the European Union (EU) that will be identified as a Federal State without negotiation, due to the solution to Cyprus’ problem. Accordingly, Northern Cyprus and Southern Cyprus together, as the constituent states of the Federal Government will be under the umbrella of the EU. However, it should be emphasized that, current economic performance such as price stability and budgetary discipline of Northern Cyprus is not enough, for meeting the convergence criteria of becoming a full member of the European Monetary Union (EMU). Therefore, potential problems of the Federal Government in qualifying for EMU should be proactively considered and consequently, corrective measures should be taken. In addition to reviewing the economic performance of Northern Cyprus, the study will focus on the research designed, as attitudes of Turkish Cypriot residents towards EU membership and Euro (€) usage. As a summary of the research, the psychological condition of Turkish Cypriot residents can be expressed as ontological uncertainty. Such that, while positive comments to EU membership and Euro usage are stated, Turkish Cypriots believe that neither the settlement of Cyprus issue nor the recognition of TRNC will become true.
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