There has been significant progress on the Cyprus issue. Cyprus has long been an impediment to Turkey’s hopes for EU accession. But in April 2004, Turkish Cypriots voted for the Annan Peace Plan to re-unify the island, while Greek Cypriots voted against the plan. We understand that this outcome was due in large part to Prime Minister Erdogan’s deft diplomacy in the run up to the poll. The EU is currently demanding that Turkey recognize (Greek) Cyprus as a pre-requisite to accession and has said that it will re-admit (Turkish) northern Cyprus to the international community. However, direct flights are still not permitted and this is a problem in Turkish-EU relations; Turks feel they are not being treated fairly and the Turkish Cypriots do not see any benefit of the yes vote for the Annan plan.