Cyprus coalition crumbles

Cyprus's governing alliance was on the verge of dissolving on Monday after its largest party broke ranks with President Tassos Papadopoulos, disclosing for the first time disagreement over a log-jammed peace process.

Government spokesman Vassilis Palmas told reporters the split would probably be finalised on Tuesday.

Communist AKEL, the largest party in the three-way coalition, plans to field its own candidate in presidential elections next February.

With an electoral strength of 31.1 percent at the last election, their candidate Demetris Christofias could prevent Papadopoulos from winning a second term.

Papadopoulos has not said whether he will seek a second five-year term, but is widely expected to do so. He was elected in 2003 with 51.5 percent of the vote to lead a centre-left coalition, and campaigned for the rejection of a U.N. reunification plan for Cyprus the following year.

AKEL said on Monday Greek Cypriots needed to be flexible in attempts to resolve the island's division, without abandoning its principles.

"We had our views on the way the Cyprus problem was handled. If our views were accepted it would have made our lives a little less difficult," said Christofias.

AKEL has always maintained a more conciliatory line towards Turkish Cypriots, estranged in Cyprus's north since a Turkish invasion in 1974 triggered by a brief Greek-inspired coup.

Reunification talks collapsed when Greek Cypriots rejected the U.N. blueprint, accepted by Turkish Cypriots, in 2004.

Greek Cypriot officials have wavered on their level of acceptance of the plan, from saying the plan is a basis for negotiation, to it requiring considerable amendments, and recently, to a Papadopoulos aide describing the blueprint as dead and buried. AKEL maintains it is still a basis for negotiation.

Is there no contradiction? There is." Christofias said.

The government said on Monday that several days ago Papadopoulos had proposed a meeting with Turkish Cypriot leader Mehmet Ali Talat in an attempt to break the deadlock.

A representative of the Turkish Cypriot leader told Reuters: "We will probably disclose tomorrow when and where we will meet. We never say no. It is something we have been seeking for some time."

The two sides have not met for a year.