EU calls for compromise with Cyprus on trade with north

NICOSIA - The European Union and Cyprus need to agree on relieving the economic isolation of the divided island's Turkish Cypriot community, the EU enlargement commissioner said here Thursday.
Olli Rehn, accompanied by Luxembourg's minister for Europe Nicolas Schmit, representing the EU presidency, met Greek and Turkish Cypriot leaders in Nicosia Thursday to "explore" the parameters of a compromise.
"Cyprus joined the EU as a divided country and, in the European Union, whose founding principles are peace, stability, democracy and human rights, such a reality is a very uncomfortable fact," said Rehn.
"The status quo on the island is, in my view, no longer sustainable and Cyprus needs to become a member state like all the others, a member state united in peace," he added.
The commisioner said the EU is ready to play a "pro-active role" towards a Cyprus settlement, and he believes there is now a "fresh momemtum which must be capitalised on".
In the meantime, the EU is seeking a trade and aid package to facilitate direct economic assistance for the north.
"For political reasons we need confidence-building measures to prepare the ground for a comprehensive settlement, and economically, we need to work in order to end the economic isolation of the northern part of Cyprus."
Schmit said Brussels could not abandon a commitment to the Turkish Cypriots to "break their economic isolation" but conceded this pledge had hit a snag.
"I cannot hide from you that there are a lot of problems still."
Brussels has sought to "reward" the Turkish Cypriots for backing a UN reunification plan at a referendum last April, after the blueprint's rejection by Greek Cypriots ensured the island's north stayed out in the cold.
The internationally recognised Greek Cypriot government has so far successfully blocked EU moves to trade directly with the north since joining the EU on May 1, 2004.
It argues this is illegal, as the Turkish Republic of Northern Cyprus is only recognised by Ankara. It is wary that any direct links between Brussels and the north would undermine the sovereignty of the government in the south.
Although the Cypriot government has no qualms about a 259 million euro aid package going to the north, it has so far scuppered efforts by Brussels to push through with direct trade as a joint package.
The Greek Cypriots also argue that current EU-approved Green Line regulations for the movement of goods and people across the divide should be enough to help Turkish Cyrpiots improve their living standards.
Turkish Cypriots insist that EU-backed the Green Line trade across the divide does not go far enough in lifting the north's economic isolation and have petitioned for direct trade and travel links.
Cyprus has been divided since 1974 when Turkish troops invaded the island following an Athens-orchestrated coup to unite the island with Greece.

05/12/2005 17:02 GMT