Turkish Cypriot government resigns

The Turkish Cypriots' minority government, which backs Cyprus reunification, resigned yesterday in an apparent bid to force fresh elections that could strengthen its hand in any future talks with the Greek Cypriots.

Prime Minister Mehmet Ali Talat's coalition lost its parliamentary majority in April, two days after Turkish Cypriots voted in favour of a UN peace plan which foundered on opposition from the Greek Cypriot south of the island.

Mr Talat, whose enclave is recognised only by Turkey, has tried for months to forge a new coalition, but has been undermined by the European Union's failure to lift trade restrictions against the Turkish Cypriots as a reward for their 'yes' vote.

The Greek Cypriots, who joined the EU in May as the sole legal representative of Cyprus, fear that allowing free trade could lead to political recognition of the Turkish Cypriots.

"We wanted to form a majority government but we could not succeed," Mr Talat told a news conference in the capital Nicosia.

"We need a stable government which can struggle to end our isolation," he said, adding he saw elections as "unavoidable".

His government's resignation was seen as a bid to force fresh elections which Mr Talat believes he can win.

Veteran Turkish Cypriot leader Rauf Denktash accepted the government's resignation, but Mr Talat asked to stay in office until a new caretaker administration can be formed.

"We will carry on working as if this resignation has not been made, most importantly because of the ongoing negotiations within the European Commission on aid and trade," Mr Talat said.

On Monday, the EU tentatively approved an aid package of €259 million for the Turkish Cypriots, but the Greek Cypriots again blocked the direct trade proposals. EU officials say they now expect no progress before next year.

In northern Cyprus, Mr Denktash must now ask the leader of the main opposition National Unity Party (UBP) to form a government. The UBP, like Mr Denktash, opposed the UN plan, saying it would spell the end of the Turkish Cypriots as a distinct entity. If neither the UBP nor Mr Talat can form a new government, an election must be called, though political analysts say the final result could again be a minority government.

Ruling party officials said they expected an election within 60 days or so, but other sources said the election could fall in January, after a December 17 summit of EU leaders which must decide whether to launch entry talks with Turkey.

Turkish Cypriots do not want their political problems to complicate Ankara's EU bid, the sources said.

Turkey is already under growing pressure to recognise the Greek Cypriot government.

Cypriot reunification would remove one of the obstacles on Turkey's path to the EU, though such a prospect seems remote after Greek Cypriots voted overwhelmingly against the UN peace plan in a referendum in April.