Cyprus: Europe urged Cypriots yesterday to back a UN plan to reunite their island in an April 24th referendum, but majority Greek Cypriots said it gave too many concessions to their Turkish Cypriot rivals.
After a week of gruelling talks in a Swiss Alpine resort, the two parties failed to bridge key differences and UN Secretary-General Mr Kofi Annan said on Wednesday that the people of the small Mediterranean island would decide the plan's fate.
The European Union's Enlargement Commissioner, Mr Guenter Verheugen, denied suggestions the peace talks had failed.
"Over the past two days in Switzerland we have come very close to achieving that objective. This procedure certainly has not failed," Mr Verheugen told the European Parliament in Strasbourg after attending the talks.
"I would call on the Greek and Turkish Cypriot leaders to do all they can to try and persuade the population of the island that the present plan represents the best and most balanced solution that can possibly be achieved," he said.
"The alternative is not this plan or another plan. The alternative is this plan or nothing, no solution at all." Greece's right-leaning Eleftheros Typos dismissed Mr Annan's plan as a "Turk-friendly monstrosity".
The differences obstructing an agreement centred on the future of Turkish and Greek forces on the island and whether a deal would fit EU law on issues such as freedom of movement.
The poorer Turkish Cypriot minority had wanted assurances, which they seem to have got, that their broad autonomy would not be threatened by an influx of wealthier Greek Cypriots.
If either side votes "no", only the Greek Cypriot south of Cyprus will enter the EU on May 1st and will be taken to represent the whole island. This could deepen the isolation of the Turkish Cypriots and possibly damage Turkey's own EU ambitions.
Turkey and the Turkish Cypriot enclave it alone recognises said they had been ready to sign the deal, but Greece and the internationally recognised Greek Cypriot government said they could not endorse an accord containing so many disputed areas.
Mr Verheugen was careful to praise Ankara's role in the Cyprus peace talks, signalling that Turkey should not be blamed if the Greek Cypriot side finally rejects the plan. "Turkey played a very constructive and co-operative role in the negotiations. I would like to say that expressly."
The EU executive is due to recommend in October whether Turkey has met the political criteria to begin membership negotiations. EU leaders have said Ankara's active co-operation in a Cyprus settlement would improve its own prospects when they take a decision in December on whether to open entry talks.
Turkish financial markets gave a cautious response, with shares edging higher while the lira and bonds also firmed on continued hopes for Ankara's EU future.
Tensions over Cyprus have brought NATO partners Greece and Turkey to the verge of war at least twice. The island has been partitioned into a Turkish Cypriot north, recognised only by Ankara, and a Greek south since Turkey invaded in 1974 after a coup by militant Greek Cypriots seeking union with Greece.
Under the deal about 120,000 Greek Cypriots would be able to return to their homes under Greek Cypriot administration. This falls well short of the aspiration of a return for all, but some may consider it better than a status quo that excludes almost all Greeks from one third of their homeland.