EU ministers to weigh up Cyprus 'no'

A two day meeting of foreign ministers in Luxembourg is set to be dominated by efforts to compensate Turkish Cypriots after a UN peace plan for Cyprus collapsed on Saturday.

But ministerial talks will also range from the controversial lifting of an arms embargo to China, to reviving the Middle East peace process and boosting relations with Africa.

The signing of a landmark agreement to define future trade and political ties between Russia and the 25 new member states is also set for Tuesday when final diplomatic hurdles are expected to have been resolved.

Since the rejection of the peace deal by 76 per cent of Greek Cypriots, diplomats from both sides of the Atlantic have pledged to “reward” the Turkish Community for its strong ‘yes’ vote.

“This signals a clear desire of the community to resolve the island's problem. The Commission is ready to consider ways of further promoting economic development of the northern part of Cyprus,” the EU executive said in a statement.

“It is absolutely out of the question to leave the Turkish community out in the cold. There will be a number of measures to get it out of economic isolation,” said one EU official.

European foreign ministers are now poised to lift the 30 year old economic embargo which forces the north of the island to trade only with Turkey, and allow tariff-free entry of fruit and vegetables into the EU.

A substantial compensation package is also likely to be approved, with money being channelled from financial aid pledged to help pay for a settlement on the island.

Although political recognition for the north of the island is not on the table, EU ministers will have to proceed carefully as Greek Cypriots are certain to oppose any moves that cast doubt on their international status as the legitimate government of the whole island.

The foreign ministers will also turn their attention to the ongoing crisis in the Middle East peace process, confirming their long-held view that any changes to the 1967 borders must be negotiated by both sides in the dispute.

The EU has so far reacted with caution to the planned unilateral moves by the Israeli administration to withdraw settlements from the Gaza strip, as the Palestinians have been frozen out of the decision.

External Relations Commissioner Chris Patten, EU foreign policy chief Javier Solana and EU envoy to the Middle East Marc Otte have been tasked with drawing up proposals to allow a smooth transition of power on the Gaza strip.

The EU is currently in talks with the World Bank and the International Monetary Fund over a economic development plan for the Palestinian Authority.

Relations with Russia will take centre stage on Tuesday at the signing of a new agreement governing political and trade ties between Moscow and the EU when it enlarges to 25 members on May 1.

Russia was previously unwilling to extend the so-called ‘Partnership and Cooperation Agreement’ to the new member states, many of them former Soviet nations, over fears that it could lose lucrative trade advantages.

But following intense negotiations over recent months, EU officials say only the issue of Russian minority rights in the Baltics remains outstanding.

The final hurdle is expected to be overcome by revised wording in the agreement which would not mention any country by name or refer to laws not being complied with, but would simply say that “membership of the EU will improve the situation of minorities.”

“This will satisfy the Russian view that this is an issue of concern and secondly that the situation is not too bad,” said an EU official.

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