EU Finnish Presidency efforts to broker last-minute compromise on opening of Turkish ports to Greek Cypriots, in return for movement on EU direct trade with Turkish Cypriots, broke down, leading to 29 November EU Commission recommendation to slow down Turkey-EU negotiations (see Turkey). UNSG Annan said UN still working to start bi- communal talks; met Turkish Cypriot leader Talat in Geneva 20 November. 5 Turkish Cypriot students attacked in Southern Nicosia school 22 November.

EU Finnish Presidency continued efforts to broker deal to end isolation of North and ensure Turkish extension of customs union to South; Greek Cypriots reiterated threat to block EU-Turkey accession talks if no deal. EU Commission released 38.1 million euros for 6 infrastructural and economic development projects in North 27 October.

EU Finnish Presidency launched drive to end economic isolation of North and ensure opening of Turkey’s ports to South to avert autumn breakdown in EU-Turkey accession process. In North, new government coalition formed between Republican Turkish Party and Freedom and Reform Party (FRP) after PM Soyer withdrew from coalition 10 September, accusing FM Serdar Denktash’s Democrat Party of obstruction: Soyer remained PM; FRP leader Turgay Avci appointed new FM. Denktash had been critical of concessions to South and EU; adjustment appeared to ensure government in line with Ankara regarding EU. In South, Defence Minister Klokaris resigned citing poor health; denied resignation related to his efforts to end allegedly powerful officer clique in army.

Senior-level talks between representatives of Turkish and Greek Cypriot presidents continued under UN auspices amid media blackout. Representatives Pertev and Tzionis discussed extensive lists of bicommunal issues submitted by both sides in July, but establishment of technical committees delayed. UNSC urged both sides to fully implement July agreement without further delay.

In surprise move, Greek and Turkish Cypriot leaders Papadopoulos and Talat held talks in buffer zone, mediated by UN Under Sec. Gen. Gambari 8 July. Sides agreed to confidence-building steps including establishment of bilateral technical committees and expert working groups; exchanged lists of issues for expert discussion 31 July. Moves came after 2 leaders met to discuss missing persons 3 July in first direct meeting since 2004 failed Annan Plan referendum.

Turkish Cypriot property commission ruled on 3 of 16 cases brought by Greek Cypriots, reinstating their property in north in 2 cases and offering compensation in third. Rulings came day before deadline set by European Court of Human Rights (ECHR) for effective functioning of commission. ECHR to decide whether to transfer 1,400 claims to commission; Greek Cypriot government rejected process. UN Security Council extended UNFICYP peacekeeping mission until 15 December. Turkish PM Erdogan stated 16 June Turkey would not open ports and airports to Cyprus unless isolation of Turkish Cypriots ended; said prepared for suspension of EU membership talks. Earlier in month, Greek Cypriots threatened to block Turkish accession progress, but backed down after EU reminded Ankara of obligation to normalise relations with Greek Cypriot government. EU approved opening of office in July in north to distribute 139m euro aid package.

Parliamentary elections held 21 May. Poll, in which President Papadopoulos’ Diko Party improved standing with 18% vote and its coalition partner AKEL Party gained most votes with 31%, seen as endorsing ruling coalition and its anti- Annan Plan position. Pro-reunification opposition Disy Party followed AKEL with 30%.

Greek and Turkish Cypriot leaders Papadopoulos and Talat agreed to meet at next Committee of Missing Persons but did not commit to holding talks. Long-awaited Turkish Cypriot census held 30 April. Greek Cypriot elections due 21 May.

Turkey rejected UN envoy Michael Moller’s meeting request, questioning his neutrality. EU said Turkey must live up to commitments regarding Cyprus, including opening of ports, or jeopardise progress over EU membership. Turkish Cypriot census scheduled for 26 March postponed to 30 April.

EU Council voted 27 February to release €139 million in aid to Turkish Cypriots by controversially de-linking aid from direct trade regulation: Turkish Cypriots criticised de-linkage. UNSG Annan and President Papadopoulos met 28 February; agreed resumption of negotiations “must be timely and based on careful preparation”. Greek Cypriot ship attempting to access Turkish port, first time since 2005 Turkish commitment to allow all EU states docking rights, refused access by Turkish authorities. Cypriot government asked EU to take action. New Greek FM Dora Bakoyanni, known to have supported Annan peace plan while mayor of Athens, said Cyprus solution a priority.