Greek Cypriot leader Christofias 11 June said sides reached agreement on economic issues; Christofias and Turkish Cypriot leader Talat continued to discuss border and territory issues 15 June. After 34th round of peace talks, leaders 26 June announced agreement on terms for opening Limnitis/Yesilirmak border crossing. European Commission President Barroso, visiting both community leaders 23-24 June, said EU will finance new road at Limnitis/Yeşilırmak if required. Following meeting with UN special envoy Downer, Turkish Cypriot FM 19 June said may consider other options if talks fail. Greek Cypriot opposition party Democratic Rally and Tala’s Republican Turkish party agreed 22 June to join forces to support ongoing talks. Christofias’ AKEL and procompromise rival DISY both drew strong support in European Parliament elections. Cypriot govt 17 June requested UN, EU help to stop Turkish/Turkish Cypriot military exercise in northeast, amid ongoing dispute over rights to offshore oil and gas fields. Downer 3 June denied rumours of UN plan to reunify Cyprus.

UNSG Ban 21 May released 6-month report on Cyprus to UNSC: suggested renewal of peacekeeping force UNFICYP for further 6 months until 15 Dec – adopted by UNSC 29 May – and called on leaders of 2 communities to speed up talks and draw up agreement to put to referenda in 2 communities. UN special envoy for Cyprus Downer 20 May said cautiously optimistic about outcome of talks, but new Turkish Cypriot govt expressed pessimism following 21 May failure during 29th round of talks to agree on new border crossing. Calls for progress from UK FM during late-month visit to region. Nationalist UBP leader Eroglu began 8th term as North Cyprus PM 5 May. FM Kyprianou said Nicosia not intending to veto Turkey’s EU accession process.

Turkish Cypriot National Unity Party (UBP) won 44% of vote in North Cyprus parliamentary elections, gained 26 seats in 50-seat parliament, defeating Talat’s Republican Turkish Party which won 29% (15 seats). Widely seen as blow to peace talks, with UBP favouring 2-state model and closer links with Turkey. UBP leader Eroglu to appoint representative to peace talks, though Talat retains full power over negotiations. Eroglu 19 Apr said he wants peace talks to continue; Turkish PM Erdogan 21 Apr warned UBP not to undermine Talat. Talat 17 Apr stressed importance of agreement before Apr 2010 presidential elections, called for increased UN involvement. Greek Cypriot leader Christofias 22 Apr reported “no progress” in latest round of peace talks. European Court of Justice 28 Apr issued ruling in favour of Greek Cypriot property owner, seen as opening way for more Greek Cypriot property restitution demands.

Talks on prospective agreement making slow progress. Greek Cypriot President Christofias and Turkish Cypriot leader Talat 5 March agreed to set aside thorny issue of property to maintain momentum in talks. Discussed EU issues on 11, 24 March; “relative progress” reported at latter meeting. Christofias 23 March said potential loss by Talat’s party in Apr parliamentary elections could have negative impact on peace negotiations. Talat 6 March suggested may not stand for re- election as president in 2010 if no progress on settlement.

Peace talks between Greek Cypriot President Christofias and Turkish Cypriot leader Talat continued with meetings on property issues; 25 Feb meeting was 20th since fresh talks began Sept 2008. UN envoy Downer 16 Feb underscored commitment of both to finding solution, warned process may be slow. EU Enlargement Commissioner Rehn on 13 Feb visit offered legal, technical assistance to help identify solution. U.S. Senator Durbin, visiting Nicosia, Athens, Ankara 17 Feb, said he senses progress. Christofias 5 Feb said Turkey cannot join EU until it removes troops from N Cyprus.

Few areas of agreement 4 months into negotiations between Greek and Turkish Cypriot community leaders, as point of departure for give and take remain difficult to find. Greek Cypriot leader Christofias 13 Jan said no “real progress to report”, but UN envoy Downer 16 Jan talked up “real possibility” of settlement. Talks on power-sharing concluded 16 Jan; leaders met 28 Jan to discuss property. Andros Kyprianou 22 Jan elected new AKEL (Communist Party) leader after President Christofias stepped down as party head. Turkish Cypriot parliamentary elections brought forward to 19 Apr from Feb 2010.

Ongoing negotiations saw discussions over foreign relations, structure of federal government. Turkish Cypriot leader Talat 9 Dec sent letter to UNSG Ban, accusing Greek leader Christofias of blocking advancement of talks. UNSC 12 Dec renewed UNFICYP peacekeeping mission mandate by 6 months to 15 June.

Face-to-face peace talks continued throughout month with weekly meetings. UN Special Envoy Alexander Downer said progress made in 13 Oct power-sharing talks. Both sides 14 Oct cancelled annual military exercises as confidence-building measure. Greek Cypriot leader Christofias 8 Oct rejected confederation of 2 separate states, citing danger of weakening central govt.

Full-fledged reunification talks between Cypriot leaders Christofias and Talat formally started 3 Sept, in earnest 11 Sept – to resume in Oct on governance and power-sharing issues. Christofias 30 Sept called for demilitarisation of island. Turkish President Gul in 23 Sept UN address expressed full support for establishment of new “state composed of 2 constituent states of equal status”.

Ahead of 3 Sept opening of full-fledged reunification talks, chief negotiators met 27 Aug to discuss remaining details; failed to agree on border opening in village of Limnitis. Greek nationalists 20 Aug damaged Turkish shops, cars in ethnically mixed Pyla village.