EU seeks Cyprus unification through trade measures

The European Commission vowed to assist the reunification of Cyprus as it unveiled a proposed aid and trade package to ease the economic isolation of the Turkish-Cypriot north.

The proposals, which follow the Turkish Cypriots' positive approach to reunifying the island, include granting €259 million to the north.

They would also allow residents of the enclave to trade directly with their southern Cypriot neighbours and the rest of the European Union for the first time since 1974.

"The aim of the package is to bring the isolation of the Turkish Cypriot community to an end," EU Enlargement Commissioner Guenter Verheugen told a news conference.

"The political purpose of the whole exercise is to contribute to the solution of the Cyprus conflict and finally to bring about the reunification of the island. We want to see a united Cyprus as a member of the European Union," he added.

Cyprus has been divided into Greek and Turkish sectors since Turkey invaded the north in 1974 after Greek Cypriots mounted a coup aimed at union with Greece.

The European Union and United Nations tried to reunify Cyprus before it joined the EU on May 1. Greek Cypriots rejected a peace plan in an April referendum, while Turkish Cypriots voted in favour.

The EU's executive Commission pledged then to offer plans to boost economic development of the much poorer north.

The proposals include measures to disburse €259 million for development in the north, and Mr Verheugen said the Commission would look to fund projects benefiting both sides.

Mr Verheugen added that the proposals would involve reopening Turkish Cypriot ports closed to international trade since 1974.

They would also define commerce across the "Green Line" separating the Greek and Turkish Cypriot communities.

The Turkish Cypriot Chamber of Commerce will be authorised to issue documents for products, especially agricultural produce, certifying they originated in Northern Cyprus.

Turkish Cypriot Prime Minister Mehmet Ali Talat said the measures were crucial to support the morale of the enclave's 200,000 people, who feel strongly the international community should reward them for voting for reunification.

"We did our best for peace, but failed due to the Greek Cypriots' negative attitude," he told reporters in Istanbul. "It is impossible for us to accept isolation because of factors we can't control."

Currently only Turkey recognises the Turkish Cypriot enclave as an independent state. Endorsement of the UN peace plan by both sides would have taken Turkish Cypriots into the EU along with their Greek Cypriot compatriots.

EU foreign ministers will have to approve the new proposals, but diplomats said they were unlikely to discuss them at their next meeting, on Monday.

The ministers need unanimity to adopt the proposal on economic aid; the trade measures just need a majority vote.

Mr Verheugen saw no difficulty in finding unanimity for the aid package, as Greek Cypriot leaders had already supported it.

Greek Cypriot officials have expressed reservations about reopening Turkish Cypriot ports as they fear this would confer de facto recognition on what they see as occupied territory.

They would prefer goods from the north to cross the Green Line for export through Greek Cypriot ports. But Mr Verheugen was confident the trade proposals would go through.

"The trade regulations can be, and I guess will be, adopted by majority," he said.