EU approves Turkish Cypriot aid

The European Union has approved an aid deal of 139m euros (£94m) for the breakaway Turkish Cypriot community in the north of the divided island.

The aid was first proposed in 2004 to spur development in northern Cyprus and facilitate trade with EU member states.

But it has now been agreed by member states, including the Greek Cypriot south which joined in 2004. Turkey has raised concerns about the aid deal.

Cyprus has been divided into Greek and Turkish sectors since 1974.

In 2004, Greek Cypriots rejected a UN plan for reunification which was supported by many Turkish Cypriots. Restrictions are still in place on the Turkish Cypriots, despite their backing for the UN plan.

Urgent need

Turkey, which hopes to join the European Union itself in the future, had previously blocked the EU aid proposals in the past as it mirrored trade restrictions by the Greek Cypriots.

The adoption of the aid package should be seen as a first step by the EU toward putting an end to the isolation of the Turkish Cypriot community Olli Rehn, EU enlargement commissioner How the Cyprus crisis unfolded

After the announcement of the aid package, which separates aid from trade, Turkish Foreign Minister Abdullah Gul said it would bring "new problems and difficulties".

"The genuine step Turkey expects is direct trade together with the financial aid," state-run Anatolian news agency quoted Mr Gul as saying.

Earlier this year, Turkey said it would open its ports to Cypriot traffic if restrictions on Turkish Cypriots were lifted by the Greek Cypriot side.

EU Enlargement Commissioner Olli Rehn said the package would enable the EU to bring assistance "where it is urgently needed - in fields such as energy and environment".

"The adoption of the aid package should be seen as a first step by the EU toward putting an end to the isolation of the Turkish Cypriot community and facilitating the reunification of Cyprus," he said in a statement.

Cypriot President Tassos Papadopoulos is due to meet UN Secretary General Kofi Annan on Tuesday to discuss further efforts towards reuniting the island.