The challenge of re-uniting the divided island of Cyprus has defeated generations of peacemakers.
 
A UN peace process ground to halt in 2004, and efforts to revive it in the summer of 2006 have borne no fruit.

What are the prospects for a settlement, and what are the main obstacles?

Why is Cyprus divided?

The split occurred in 1974, when a Greek-inspired coup prompted a Turkish intervention of the northern third of the island. The Turkish Republic of Northern Cyprus, declared in 1983, is recognised only by Turkey. The rest of the world recognises the whole of the island as the Republic of Cyprus, although in practice the government only controls the territory to the south of a UN-patrolled "green line".
 

What went wrong in 2004?
The United Nations made a huge effort to get both sides to agree a peace settlement before Cyprus joined the EU on 1 May 2004. The UN's plan to make Cyprus a federation of two states with a loose central government, was put to the vote on 24 April 2004. The Turkish Cypriots voted in favour, the Greek Cypriots voted against.

What happened to the peace process after that?
It was on hold for two years, until the UN arranged a meeting between Cypriot President Tassos Papadopoulos and the Turkish Cypriot leader Mehmet Ali Talat on 3 July 2006.
They agreed to a series of further bilateral talks on technical issues - such as water management and environmental protection - and on substantive political issues that will be key to any solution.
But political disagreements appear to have prevented the talks getting under way.

What developments have taken place at European Union level?

The EU agreed in 2004 to end the isolation of the Turkish Cypriot community, and to encourage its economic development. Soon afterwards, the European Commission put forward draft regulations on opening Turkish Cypriot ports and airports to direct trade, and providing 250m euros (£168m) of aid.
Some aid is now on the way to the north of the island, but the Cypriot government has so far blocked the regulation on direct trade, arguing that this would be tantamount to recognising the self-declared Turkish Republic of Northern Cyprus.
 

The Finnish EU presidency in the second half of 2006 attempted to unblock the stalemate by proposing putting the Turkish Cypriot-controlled port of Famagusta under UN administration, and allowing it to trade directly with the EU.
 
The deal could also have involved allowing Greek Cypriots access to the nearby resort of Varosha, which they were forced to leave in 1974.

Was Turkey involved in any discussions on this subject?
Yes, because one of the EU's goals was to encourage Turkey to honour a commitment to open its ports and airports to Cypriot vessels.
 
Turkey made this commitment in 2005, and the European Union regards it as an unconditional obligation.
 
Turkey, on the other hand, wants the EU to honour its commitments to the Turkish Cypriots in return
It says the EU made a commitment to facilitate direct trade with the Turkish Cypriot community. Most EU member states and the European Commission take the same view.

What now, given that the deal has fallen through?
If Turkey does not open its ports, then Turkish EU membership talks will stall, and prospects for reuniting Cyprus will recede into the distance, experts say.

Why did the Greek Cypriots vote against the UN plan?
These were among the most unpopular points:

• Not all Greek Cypriot refugees would have got back the homes they left in the 1970s

• Some Turkish troops would have been allowed to stay on the island indefinitely

• Turkish settlers would also have been allowed to stay.

Voters do not seem to have changed their views since 2004.


The coalition government led by Tassos Papadopoulos, which campaigned for a "No" in the referendum, increased its share of the vote in elections in May 2006.

The desire for a negotiated settlement is reported to be greater among older voters than it is among younger ones.
 

Why did the Turkish Cypriots vote in favour?
Many people wanted to end the community's isolation, and hoped for a rise in living standards.
They ignored the advice of their then leader, Rauf Denktash, to vote against the plan. However, the "Yes" vote has brought them no benefits in practice.

What else was in the UN plan?
The deal would have meant the Turkish community giving up some of the land it holds, leaving it with about 29% of the total.

The presidency of the united Cyprus would have switched back and forth between the two communities.

How has life already changed on the island?
Travel restrictions were eased in April 2003 after 29 years of total division.

Since then, thousands have crossed the border, and emotional meetings between former friends and neighbours have helped overcome some prejudices.