President Papadopoulos and Turkish Cypriot leader Talat met in buffer zone 5 September but failed to make progress in implementation of pre-negotiation mechanisms agreed at last meeting in July 2006. Turkish President Gul made first overseas trip to North 18-19 September. EU report on implementation of 2004 Green Line regulation indicated continuing obstacles limiting Turkish Cypriot trade to South.

Cypriot President Papadopoulos and Turkish Cypriot leader Talat to meet 5 September in buffer zone; first meeting in 14 months. New Cypriot FM Kozakou- Marcoullis slammed by Ankara after stating key to solving dispute in hands of Turkish military. Dispute over offshore oil and gas exploration rights in Eastern Mediterranean continued, with Kozakou-Marcoullis threatening could affect Turkey’s EU membership bid after Ankara sent letter to UNSG Ban Ki-moon on issue. Hijacking of plane flying from Turkish Cypriot airport Ercan to Istanbul ended with surrender of 2 hijackers claiming al-Qaeda ties 18 August.

Largest party in parliament, Progressive Party of the Working People (AKEL), withdrew from governing coalition 10 July, after deciding to field candidate, Demetris Christofias, for February 2008 presidential elections. President Papadopoulos said would seek second term 23 July. Papadopoulos invited Turkish Cypriot leader Talat to discuss stalled 8 July process; Talat delayed setting meeting date after Greek Cypriot blocking of friendly football match between Turkish Cypriot and English club teams. Remains of 28 missing victims, 15 Greek Cypriot and 13 Turkish Cypriot, of 1974 conflict identified by UN Committee for Missing Persons buried in north and south 12 July.

UN Security Council extended UNFICYP mission to December 2007; called on sides to immediately engage with stalled 8 July 2006 process of twin-track political and technical talks to allow fully-fledged negotiations. Landmark dispute between British owners of house in North and original Greek Cypriot owners of land referred by British judges to European Court of Justice.

Ankara rejected claims Turkey blocking plans to enhance EU-NATO cooperation in Kosovo but insisted on exclusion of Republic of Cyprus from future Kosovo police mission.

Cypriot MEP Marios Matsakis arrested on Akrotiri British sovereign base during European Parliament group visit, for outstanding fine for causing criminal damage at base. UN published inter-communal public opinion survey.

President Papadopoulos called on Turkish Cypriot counterpart Talat to immediately restart preliminary talks; Talat accused him of political manoeuvring, saying still no agreement on ground rules for talks. Following earlier Turkish move, Greek Cypriots demolished wall on Green Line dividing major Nicosia street. But Papadopoulos said civilians could not cross until Turkey withdraws troops from island.

Government proceeded with tender for off-coast oil and gas exploration despite Ankara warning against steps taken without Turkish Cypriot involvement. Turkish Cypriot Mufti Yonluer and Greek Orthodox Archbishop Chrysostomos II met 21 February in UN buffer zone for first meeting of religious leaders since 1974.

Turkish Cypriots dismantled controversial footbridge 9 January in effort to ensure opening of green- line crossing on Nicosia’s Ledra Street, divided since 1963; EU has pledged €100,000 for project. Turkish military had criticised move, but dropped objection after President Talat met Chief of Staff in Ankara. EU governments agreed to pursue special conditions for trade with Turkish Cypriots “without delay”.

Dispute over opening of Turkish ports to Republic of Cyprus traffic led to EU suspension of 8 of 35 EU accession negotiating chapters with Turkey (see Turkey). UN Security Council extended UNFICYP mission to June 2007 but urged sides to resume settlement talks. European Court of Human Rights 7 December ruling failed to resolve whether new Turkish Cypriot property compensation commission is adequate domestic recourse for Greek Cypriot claims: court ordered Turkey to pay claimant Myra Xenides Arestis €885,000 but also noted new commission had, in principle, satisfied court requirements, signalling possible transfer of 1,360 applications to commission.