EU aid to Turkish Cypriots hampered by island's division

(BRUSSELS) - The EU cannot dispense much-needed aid to the isolated Turkish community in northern Cyprus due to the island's political division, according to the European Commission.

"The legal, diplomatic and political context within which the Commission is operating ... poses a number of challenges and risks to the successful implementation" of the 259 million euros (367 million dollars) of aid destined for the north of the island, the EU's executive arm said in a report given to the EU parliament and member states last week.

In 2004, before the Greek south of the island joined the EU following a failed effort to reunify the island, the Commission proposed a package of financial aid to the isolated north, where the Turkish Republic of Northern Cyprus is recognised only by Ankara.

For two years Nicosia vetoed the aid, before agreeing in February 2006 to unblock the 259 million euros in question.

That gesture was seen as a first step towards ending the north's isolation.

But since then only 14.5 million euros of contracts have been agreed, according to the Commission.

One of the main obstacles, according to Brussels, is the lack of cooperation between the two sides of the island, divided since 1974.

"Political issues not directly related to the aid programme per se but rather to the overall political context on the island might induce both communities to block implementation of certain parts of the programme," the Commission said in a statement to the EU parliament and member states.

The fact that an estimated 78 percent of privately owned land in the northern part of Cyprus belongs to Greek Cypriots also complicates matters, the EU's executive added.

Blocks on infrastructure projects are of special concern due to "serious gaps" particularly in the areas of water and sanitation, energy, traffic safety and telecoms.

"Following years of underinvestment and neglect, key infrastructure sectors are in need of rehabilitation and upgrading," the Commission said.

Besides the political problems, the EU has also encountered technical hurdles, with projects ill-prepared due to the delay in deblocking the funds.

The Cyprus question has long hampered the EU's relations with Turkey, which is an EU candidate nation but does not recognise existing member Cyprus.