Cyprus challenges EU aid tender in north

Cyprus has taken the European Commission to court over an energy project in northern Cyprus that was planned as EU aid, its foreign minister said on Thursday.

Cyprus, represented in the European Union by Greek Cypriots, has sought interim measures against the project's execution until the case is heard at the Court of European Communities, Foreign Minister Erato Kozakou Marcoullis said.

"Unfortunately we had no other choice," she said.

Cyprus says the project in question, an invitation to tender for upgrading northern Cyprus's energy sector, attempted to involve the authorities in northern Cyprus, giving credence to the enclave which is only recognised by Ankara.

"It was deemed by the government and its legal advisers as unacceptable and incompatible with the spirit and the letter of the financial regulation," Marcoullis said.

The dispute runs to the heart of Cyprus's division and the complex nature of its membership in the European Union.

Greek Cypriots represent Cyprus in the bloc while Turkish Cypriots in the north are excluded. Greek Cypriots oppose any direct dealings with the Turkish Cypriots.

The European Commission invited tenders for the project in January, under the umbrella of a 259 million euro aid package included in a financial regulation. Other funds have been disbursed for unrelated projects to the region.

Turkish Cypriots said the move was an attempt to keep the community in isolation.

"This is the continuation of the Greek Cypriot policy of keeping our community isolated and of blocking the development of relations between us and the EU," said Turkish Cypriot spokesman Hasan Ercakica.

"The EU has to decide whether it wishes to continue allowing the Greek Cypriots to abuse the mechanisms of the EU in this way, or whether it really supports the lifting of the isolation on the Turkish Cypriots."

Turkish Cypriots in northern Cyprus are subject to restrictions ranging from bans on direct exports and air links with most countries.

The enclave is propped up by about 30,000 Turkish troops, who have been there since Turkey invaded the island in 1974 after a coup by Greek Cypriot nationalists engineered by the military then ruling Greece.

Turk Cypriots warily eye Greek poll

Turkish Cypriots are anxiously awaiting the outcome of an election this month in the Greek Cypriot south that could cement partition of the Mediterranean island they share and wreck Turkey's ties with Europe.

President Tassos Papadopoulos, who led Greek Cypriots into rejection of a U.N.-backed Cyprus reunification plan in 2004, is seeking re-election in the February 17 poll but a strong challenge from two rivals is likely to force a second round on February 24.

Victory for the hawkish Papadopoulos, who enjoys a small lead in opinion polls, would dash Turkish Cypriot hopes of a swift end to their international isolation and hobble Turkey's efforts to revive its stalled European Union entry bid.

"The Greek Cypriot elections are very important for us... We don't have much time, our peoples are becoming more estranged by the day," Turkish Cypriot leader Mehmet Ali Talat told Reuters at his residence in Nicosia, Europe's last divided capital.

Talat, whose community supported the 2004 U.N. peace plan, declined to comment on the candidates contesting the Greek Cypriot presidency, but said a fresh peace drive was essential.

"The status quo is not sustainable or fair because ... we are isolated. This election is really the last chance (for change)."

Cyprus comprises an internationally recognized Greek Cypriot south -- a wealthy EU member state which has adopted the euro and is home to 80 percent of the island's one million people -- and a poorer Turkish Cypriot north recognized only by Turkey.

It has been split on ethnic lines since Turkey invaded the north in 1974 after a Greek Cypriot coup backed by the military junta then ruling Greece. Turkey still keeps about 35,000 troops in the self-styled Turkish Republic of Northern Cyprus (TRNC).

PERILS OF PARTITION

A Western diplomat based in Greek Nicosia said it was vital that all parties committed after the elections to a new U.N.-led peace process or face "a drift towards permanent partition".

"We cannot allow this problem to fester ... Cypriot voters perhaps don't realize how stark the options are," he said.

His warning echoed a recent study by the International Crisis Group (ICG), a respected Brussels-based think-tank.

"(An unmanaged slide to partition) would be profoundly damaging to Turkey's convergence with Europe, Greek Cypriot prosperity, stability in the east Mediterranean and EU unity," the ICG report said.

Leaving northern Cyprus in a legal and diplomatic limbo would undermine the fight against money laundering, human and drug trafficking and other international crime, it said.

The Cyprus dispute is already hampering closer cooperation between the EU and NATO in conflict zones from Kosovo to Afghanistan. Turkey is a NATO member but Cyprus is not.

This week, in a blow to EU unity, the Greek Cypriot government prevented the 27-nation bloc from forging a common position on Kosovo's independence.

Cyprus fears Kosovo -- whose independence is strongly opposed by Serbia of which the mainly ethnic Albanian province is still a part -- would create a precedent for recognition of the TRNC, despite EU assurances that Kosovo is a unique case.

Brushing aside suggestions Kosovo might be a model for the TRNC, Talat said Turkish Cypriots still favor reunification along the lines of past U.N. peace plans, involving a loose federal government and wide autonomy for the two communities.

"Realistically, we can solve this problem in less than one year. There is already a huge body of work on what needs to be done ... It is possible with good will and good faith," he said.

With a settlement, Turkish Cypriots would finally enjoy the full benefits of EU membership while Greek Cypriots would regain land and property in the north and win access to nearby Turkey's booming economy and its market of 70-odd million consumers.

BARRIERS

But seasoned Cyprus observers are not optimistic.

They say inter-communal contacts have fallen since the Greek Cypriots rejected the 2004 peace plan. Trade is static. Cooperation on issues ranging from crime-fighting to conservation founders on the Greek refusal to accept the legitimacy of the Turkish side.

"The two sides have become more entrenched. There are big psychological barriers," said Hasan Kutlu Ince, head of the Turkish Cypriot Chamber of Commerce.

The Greek Cypriots' blocking of EU efforts to end a trade embargo against the TRNC has eroded Turkish Cypriot support for the EU. Greek Cypriots fear allowing the TRNC to trade freely with the EU could lead to de facto recognition of the enclave.

Some say the TRNC's isolation is already starting to crack.

Last week, to Greek Cypriot fury, former German chancellor Gerhard Schroeder led a delegation of German businessmen to northern Cyprus. Talat has held talks -- unthinkable a few years ago -- with EU foreign ministers and U.S. secretaries of state.

Several foreign companies including Australian franchise Gloria Jean's Coffees now operate in northern Cyprus. Syria has opened a regular ferry link to the TRNC.

"I do not see how the two communities, with all the hang-ups they have about their relationship, can ever agree to come back together in one state to run their affairs," said Ayla Gurel, an analyst at the International Peace Research Institute Oslo.

"(Another Papadopoulos win) might lead the international community to think the previously unthinkable -- partition."

U.N. rejects leading new Cyprus reunification drive: official

The United Nations will not risk another failed initiative to reunify war-divided Cyprus but would support a homegrown bid, the U.N.'s top official on the island said Thursday.

"We have all recently heard much speculation about the possibility of a new, last-chance U.N. initiative on the Cyprus problem," said Michael Moller, the U.N. Secretary General's special representative to Cyprus.

"In fact, it has been clear for some time now, that rather than launching a new initiative, the U.N. will support good faith efforts on the part of both sides to restart talks and work for a solution," Moller said, speaking at a U.N. peacekeepers' medal parade.

Moller's remarks dampened broad anticipation of a UN-led resumption of reunification talks this year.

Cyprus has been divided along ethnic lines since 1974, when Turkey invaded in response to a failed coup by Athens-backed supporters of the island's union with Greece.

In 2004, a U.N. reunification plan was rejected by three quarters of Greek Cypriot voters. Although the majority of Turkish Cypriots approved the plan, Cyprus remained divided when it joined the European Union later that year.

Moller urged Cypriot leaders to head up reunification and not wait for the U.N.

"Is there the necessary political will among the leaders of both communities in Cyprus to sit down and negotiate seriously to find a solution, for the greater good of their people?" he said.

"The answer to that question lies, as does the key to a settlement, not with us, but with Cypriots themselves."

Turkey's EU course should not be linked to Cyprus settlement

Members of the European Parliament said on Friday that Turkey's EU accession course should not be linked to the solution of the Cyprus problem.

They pointed out that if a Cyprus settlement was not found soon, the Greek Cypriots were in danger of becoming a minority due to the continuing inflow of Turkish settlers to the Turkish occupied areas of the Republic.

Speaking at a press conference following the end of a two-day meeting of the Bureau of the EPP-ED Group in the European Parliament in Nicosia, Chairman of the EPP-ED Group in the European Parliament Joseph Daul referred to the importance of helping all EU neighbours in the Mediterranean achieve growth, adding that the EU's aim was not to impose itself on them but to facilitate the harmonious functioning of the region.

He added that Europe should have political positions.

President of the Democratic Rally (DISY) Nicos Anastasiades expressed his satisfaction regarding the presence of the Bureau in Cyprus, as well as his gratitude for the support the EPP is giving to the people of Cyprus in their struggle for the reunification of the island and to efforts to solve the Cyprus problem.

Chair of the High Level Contact Group in the European Parliament for relations with the Turkish Cypriot community Francoise Grossetete said the Cyprus problem was a European question and referred to the action of the Contact Group, which will be visiting Cyprus again in May.

She added that the Contact Group was gathering information in order to be more effective, with the ultimate aim being the reunification of Cyprus.Chairman of the Committee on Foreign Affairs of the European Parliament Jacek Saryusz-Wolski said Cyprus was a key member state of the EU for lasting peace in the Middle East, adding that the EU must rely on Cyprus in order to achieve this purpose.

He noted that a stronger reunited Cyprus could contribute towards this direction.Rapporteur of the Civil Liberties, Justice and Home Affairs Committee on missing persons in Cyprus Ewa Klamt said efforts must be made to solve the problem of missing persons, which could contribute towards a Cyprus settlement.

She spoke about her draft report, in which she calls on those with evidence to pass it on in order to speed up efforts to solve the problem of missing persons, and furthermore asks for increased funding.Head of the Cypriot delegation of the EPP-ED Group in the European Parliament Panayiotis Demetriou said Europe was now focusing on Cyprus, adding that the EPP could assist in efforts to reach a Cyprus settlement.

Replying to questions, Daul said the EU should go further than investment and develop a political stance in order to have a bigger presence in the wider region, adding that efforts would be made for proposals on the Mediterranean Policy and by June there should be results.

To another question, Grossetete said it was difficult to link Turkey's EU accession course to the Cyprus problem, adding that if a settlement is not found soon, the Greek Cypriots may be in danger of becoming a minority, due to the continuing inflow of Turkish settlers to the areas of Cyprus under Turkish occupation.

She said Turkey remained an invader and refused to recognise an EU member state, namely the Republic of Cyprus, adding that the Contact Group was trying to bring the two communities closer, which would facilitate reunification.Grossetete added that linking the two issues could in fact slow down efforts to reach a Cyprus settlement.

To questions regarding illegal immigration, Daul said Cyprus could not handle the problem on its own. He said European solidarity should apply because it was not only Cyprus facing this problem.Cyprus, which joined the EU in 2004, has been divided since 1974, when Turkey invaded and occupied its northern third.

Kasoulides ready to meet Turkish Cypriot leader

The day after he is elected to the presidency, Ioannnis Kasoulides will invite himself to the Turkish-occupied areas for a meeting with the leader of the Turkish Cypriot community, to discuss pressing matters relating to efforts towards a negotiated settlement, one of the nine presidential candidates has told CNA in an interview.

“Come 25 February, I will invite myself to the occupied areas, to Kyrenia, to Mehmet Ali Talat’s residence. He cannot decline a meeting with a newly-elected president, who wishes to see him with good will, to talk to him about measures between the Greek Cypriot and the Turkish Cypriot communities for peace, and there are measures we can discuss,” Kasoulides explained.

The former foreign minister believes that it is high time that Cypriots take their fate in their own hands and push for a political settlement by themselves, through negotiations, with a view to reunite the country, divided since the 1974 Turkish invasion.

He says he will follow an outward-looking foreign policy to revert what he calls the “negative impression” Cyprus has abroad.

Kasoulides is absolutely certain he will be in the run off election and does not exclude any prospective cooperation. His priority, he told CNA is to redress the country’s credibility in the international political scene and to seek a political settlement, through peace talks, which he understands is not an easy task but believes that with the right strategy, he will be able to exploit, to achieve this goal, junctures in world affairs to the benefit of Cyprus.

Cypriots will go to the polls on February 17 to elect their president for a five-year term. The three main presidential hopefuls are Kasoulides, incumbent President Tassos Papadopoulos and House President Demetris Christofias.

Kasoulides is backed by the Democratic Rally (DISY) party and other movements, Papadopoulos is supported by the Democratic Party (DIKO), the Social Democrat EDEK, the European Party and the Enviromentalists, and Christofias has the support of his party AKEL and other smaller groups.

In his interview with CNA, Euro MP Kasoulides said that in the first few days of March, the UN process provided by an agreement reached between the Greek Cypriot and the Turkish Cypriots communities in July 2006, must begin.

“A preparatory period of about 5-6 months will be needed on thorny issues such as the economy, property issues, and this will be followed by substantive negotiations,” he explained.

Cyprus solution

Questioned on his intention to seek what he calls a “Cypriot” solution, he said the Cyprus problem cannot be solved without “bothering Turkey”, without “friends and allies”.

“My priority is first to restore the credibility and the political clout Cyprus can carry, as opposed to seeking a political settlement per se because the quality of the solution also depends on whether there is a friendly disposed environment towards us,” he said.

He explained that most international conflicts have been settled between the opposing sides involved in them, whereas in Cyprus there is an impression that “others” will come to solve the problem.

“The others have tried but the result is the same. It is high time - on the basis of the material we have before us from all these past years, recent developments such as the acquis communautaire, UN resolutions, other federal systems - to seek a solution between us”, he explained, adding that this would mean the UN Secretary General, under whose auspices talks will take place, will restrict his role as this is defined by his mandate of his good offices mission.

Kasoulides acknowledges the “huge difficulties” in attempts to settle the Cyprus problem, but he points out that these efforts must be coupled with the international political climate around – including Turkey’s wish to join the EU, energy concerns, Iraq, US foreign policy, Russia’s world standing – and Cyprus’ strategic interests, in addition to “moving Cyprus out of its current isolation”.

On Turkey’s European aspirations and the EU stance towards Ankara, he said so far Brussels’ appeals seem to be more of a plea than a strong recommendation to a candidate country which has to meet its obligations as these emanate from its accession course.

As for the right to veto EU decisions, he explained that “a veto is tantamount to a situation whereby there is no unanimous decision on a specific issue the EU is discussing, which can be postponed for a 1, 2 or more months but at the end of the day a decision will be taken.”

On his plans for one five-year term in office, he said a solution could be found soon or it could be reached in five years’ time, adding that “unless you lay the foundations on which to build, with a view to succeed, you cannot make headway.”

He also said he does not plan too far ahead, hence at this stage he outlines his plans for the next five years only.On his opponent, incumbent President Tassos Papadopoulos, he said his most striking weakness is the fact that his foreign policy has been “inward looking” in that he seems to undermine the importance of having friends in the international political arena.

As for the third main presidential candidate House of Representatives President Demetris Christofias, he had this to say:

“Where I disagree with Christofias is that he has for the past four and a half years backed Papadopoulos’ policy, knowing where this was leading us.”

Papadopoulos was elected to the presidency with the support of AKEL, which until the summer was the main partner in the coalition government.

Nonetheless, Kasoulides said, “I accept that, following his bid for the presidency, Christofias’ positions on the question of Cyprus are not completely contrary to mine, and I am referring to the need for an initiative and efforts to regain our credibility abroad.”

Kasoulides said he disagrees with Christofias’ view on the Treaty of Lisbon, the EU services regulation and his opposition to applying for membership of the Partnership for Peace, which he believes show “euro- skepticism”.

Asked about the prospect of having a coalition government, if elected, he said “the time is ripe for the political parties to cooperate on the national issue, hence my proposal to reach an agreement, on a national basis, on a framework solution which will serve as a starting point for our positions in future negotiations.”

On possible cooperation in the second round of elections, on February 24, Kasoulides said he is ready to cooperate with other parties and movements, provided that it is understood that “the Executive in which politicians will participate in their individual capacity, and not as party representatives, will be under the national flag of cooperation.”

“I am ready to cooperate with everybody, I have neither barriers nor prejudice against anybody,” he adds.

Kasoulides is “absolutely certain” he will go to the second round of elections, on the basis of two opinion polls his campaign has carried out, but whose contents he declined to reveal, saying there is a reason for it, which he did not disclose either.

Asked about changes he would bring about, if elected, he referred to the introduction of the national health scheme, the creation of a School of Medicine, efforts to make pupils and students “digitally literate”, under the slogan “one pupil one lap top”.

He also talked about giving more freedom to teachers with the school curriculum and providing good means of public transport.He believes that the proposed reduction of the compulsory military service from 26 months to 14 is in line with new trends in defence matters, which call for professional armies looking after the nation’s defecnes, a development Kasoulides says is partly due to technological advances in the realm of defence.

On the issue of illegal immigration, he says Cyprus must show a more “effective and strict” approach to illegal immigrants but also acknowledges that the government has to deal with political asylum seekers in accordance with European rules and regulations.

He recommends speedy processing of such applications, within months instead of years, and advocates employment for asylum seekers and for foreign students since there is a need for foreign labour force.

Talat: whoever wins election has one last chance to reunite Cyprus

THE VICTOR in the presidential election on February 17 is likely to be the last to lead negotiations for a Cyprus settlement based on a federal model, Turkish Cypriot leader Mehmet Ali Talat said this week.

“This is the last opportunity,” he told the Sunday Mail in an exclusive interview at his north Nicosia ‘palace’ on Thursday.

Predicting a restart of negotiations on a new UN-sponsored peace plan in the wake of the upcoming election, Talat said failure to reach agreement could result in the two communities going their separate ways.

“The international community may tolerate other types of solution, which I myself do not desire,” Talat said, alluding to the two-state model advocated by his predecessor Rauf Denktash.

Such an approach has also gained newfound respectability among Turkish Cypriots as a result of Kosovo’s expected declaration of independence from Serbia – a move that looks set to be endorsed by the US and the bulk of EU member states.

The result of the election, just two weeks away, could then be vital for Talat, who has staked his own political survival on his dream of a federal solution to the island’s decades-old divide, and of getting the Turkish Cypriot community into the EU.

But that does not mean Talat will be lending his support to any of the three leading candidates currently running neck and neck. He has learnt from past experience that efforts to influence Greek Cypriot voters are likely to backfire, both on those he supports and himself.

“If I make a choice, they will lose,” Talat says, having identified what some call the “kiss of death” phenomenon, whereby Greek Cypriot politicians who gain Turkish Cypriot backing tend to lose, rather than gain, votes.

So Talat will be keeping mum this time. However, what he does not say could be seen as being just as significant as what he does.

Note that now is not the time for Talat to berate AKEL candidate Demetris Christofias for withdrawing his support for the Annan plan just days before the 2004 referendum. And all attempts to draw him on whether he would trust Christofias not to repeat what has earlier been described by Talat’s party as “treachery” remain without comment.

In Talat’s mind, the result of this election is as significant as the one in 2003, which saw veteran Greek Cypriot negotiator Glafcos Clerides ousted as president by current incumbent Papadopoulos.

With Clerides being one of the main architects of Talat’s beloved Annan plan, his election loss was in effect the plan’s death knell. But what if things at the top do not change?

While one assumes Talat will not be hoping for the re-election of a leader seemingly hell-bent on tripping him up at every opportunity, the Turkish Cypriot leader does not rule out the possibility that, should Papadopoulos win, he could re-emerge as a changed man with a new, more reconciliatory approach to power sharing with the Turkish Cypriots.

Such a change in stance, he says, is not unprecedented.

“Clerides during his first term was hawkish; during the second, he was one of the architects of the Annan plan,” Talat recalls.

Asked for his view of relative newcomer Ioannis Kasoulides, Talat is no more committal than saying, “They’re all good guys. I expect the election to yield a result for the benefit of all Cypriots.”

Such optimism could, however, be cover for his growing fear that 2008 could be the last chance for a reunification deal.

“Our people are becoming estranged. Till now, the problem was between politicians, the elite… but now it is becoming a problem between the people,” he says.

Talat also sees the possibility that if he fails to deliver a solution to his electorate, he will ultimately be replaced by a leader who takes a tougher stance against what the Turkish Cypriots generally see as Greek Cypriot intransigence.

“Until now there is nobody more inclined than I am to a united solution,” he warns, adding that he will remain “flexible” in negotiations with his Greek Cypriot fellow negotiator.

“If I see good will, I will be more flexible.”

Three presidential front-runners in Cyprus get 30% each

The three front-runners for the presidential post in the Republic of Cyprus get 30% of the votes each, the Greek Eleftherotypia comments.

The presidential elections are due on February 17th.

The main contestants are the running President Tasos Papadopoulos, President of the House of Representatives (Cypriot Parliament) Dimitris Christofias, and Member of the European Parliament Ioannis Kasoulides.

The opinion polls show that the three stand equal chances to reach the second round. It is only Papadopoulos who has a narrow lead over the rest.

For now the election campaign is running smoothly despite the severe disagreements on the Cyprus issue, economy, and others