Communities have been invited to submit projects for a new €3.5 billion funding round, President Nikos Christodoulides said on Wednesday during a visit to the village of Sykopetra in Limassol.

Speaking at the opening of the Prophet Elias community park and mini football pitch, Christodoulides said the government would decide on projects across Cyprus worth that sum in the new period.

He urged the community council to put forward projects, alone or with neighbouring communities, so they could be approved next September.

He said the government had shown through its projects that rural and mountain areas were a priority.

He cited the 2024 decision to keep Kampos primary school open when it had only one pupil.

Many more children now attend, he said, because the school drew young parents to the village.

He said communities needed infrastructure, especially in Limassol, so that young couples could return, and that the aim was for villages to grow beyond 120 residents.

The community council’s contribution to development projects has been cut to 5 per cent.

Christodoulides said support for equipping the clinic at the community stadium should be taken for granted.

For community toilets, he asked the council to say how much was needed for studies, to be handled through the commissioner for mountainous communities.

A house renovation for an office and a thematic museum would be supported once plans were mature and permits secured.

He said the Palaichori to Sykopetra road widening, or a new link to Apliki, concerned the Nicosia district governor Constantinos Yiorkadjis, and promised to return to see whether work could proceed in phases.

Greek Cypriot negotiator Menelaos Menelaou said on Wednesday that problems over the routing of the Pyroi crossing point “have been overcome”, although a dispute over a second crossing point still stands in the way of an agreement.

Speaking to the Cyprus Mail, Menelaou said the remaining obstacle was the Turkish Cypriot demand that the Louroujina to Lympia crossing be included in any such deal.

He said the Louroujina issue remains open and has not yet been reconciled with the Greek Cypriot proposal for a crossing at Kokkina.

The earlier dispute concerned the route of the proposed road from Athienou through Pyroi to the Nicosia suburb of Aglandjia.

The Greek Cypriot side treats it as a single crossing, while the Turkish Cypriot side objected to a road running through so many kilometres of the buffer zone, arguing that it created security complications.

Menelaou told the Cyprus Mail the route now sits roughly evenly, between the government-controlled areas and the occupied north.

Pyroi is a ruined village in the north, inside a Turkish military zone, whose residents have been displaced since 1974.

Athienou lies on the government-controlled side, and a crossing would cut the drive from there to Nicosia from up to an hour to about ten minutes.

Christodoulides said on Tuesday that he had given Turkish Cypriot leader Tufan Erhurman two new proposals on crossing points, one of which had already been rejected.

Erhurman separately confirmed late on Tuesday that he had rejected a proposal to open the fenced-off area of Varosha under United Nations administration and the port of Famagusta under European Union control.

He said formal negotiations could not begin until the sides agree on methodology and make progress on confidence-building measures.

New crossing points are the most concrete of those measures, as both sides agreed on a package of four after an enlarged meeting in Geneva in March 2025, when UN Secretary-General Antonio Guterres told each side to suggest two.

The Greek Cypriot side proposed the Athienou to Aglandjia road, with a crossing at each end, while the Turkish Cypriot side proposed Mia Milia and Louroujina.

The package has since stalled, for during Guterres’ visit in July, sources told the Cyprus Mail that the Greek Cypriot side suggested opening only two of the four, with Louroujina shelved, which the Turkish Cypriot side refused.

The European Union and Turkey are preparing high-level talks before the end of October in an attempt to revive negotiations over Cyprus, following an initiative by United Nations Secretary-General António Guterres.

Cypriot President Nikos Christodoulides announced the planned meeting on 16 October during the European Council summit in Brussels, saying discussions would address both the resumption of negotiations over the island’s division and the possibility of improving relations between Ankara and the EU.

The initiative follows diplomatic contacts in New York involving Guterres, European institutional leaders and the Cypriot government. However, renewed differences over the conditions for negotiations have already cast doubt on whether the process can produce substantial progress.

On Sunday, 18 October, Christodoulides accused Turkish Cypriot leader Tufan Erhürman of imposing preconditions before formal negotiations could resume, particularly concerning arrangements for a rotating presidency in a reunited Cyprus.

The disagreement underlines the difficulties facing an initiative intended to reconnect the UN peace process with the EU’s broader relationship with Turkey.

Brussels seeks a negotiating role

Christodoulides said the planned meeting between the EU and Turkey would examine how to establish the necessary conditions for negotiations to restart within the previously agreed UN framework.

He indicated that any improvement in EU–Turkey relations would be linked to progress over Cyprus.

The president’s announcement in Brussels follows months of diplomatic consultations involving the Commission, European Council and UN.

European Commission President Ursula von der Leyen and European Council President António Costa have urged Turkish President Recep Tayyip Erdoğan to support the renewed peace initiative.

Turkey’s relationship with the EU encompasses trade, customs cooperation, migration and regional security. Ankara remains an EU candidate country, although accession negotiations have been effectively stalled for years.

Cyprus remains one of the principal obstacles to any substantial improvement in that relationship.

The island has been divided since Turkey’s military intervention in 1974. The internationally recognised Republic of Cyprus joined the EU in 2004, but EU law remains suspended in areas where its government does not exercise effective control.

The self-declared Turkish Republic of Northern Cyprus is recognised only by Turkey.

Disagreement over political equality

The UN has traditionally sought a settlement based on a bizonal, bicommunal federation with political equality between the Greek and Turkish Cypriot communities.

Negotiations collapsed at Crans-Montana in Switzerland in 2017 amid unresolved disputes over security guarantees, political representation, territory and the presence of Turkish troops.

Erhürman, who became Turkish Cypriot leader in 2025, has expressed support for renewed negotiations within a federal framework. However, he wants assurances about political equality and the structure of future talks.

The latest dispute concerns whether the principle of a rotating presidency between the two communities should be accepted before negotiations resume.

Christodoulides rejected that demand on 18 October, arguing that substantive questions should be negotiated together rather than settled in advance.

The Turkish Cypriot leadership regards rotating executive power as an essential element of political equality, while the Greek Cypriot side objects to making agreement on that arrangement a prerequisite for restarting discussions.

The disagreement has emerged despite recent efforts by the United Nations to improve relations between the communities.

In a statement issued on 13 October, the UN confirmed that Christodoulides and Erhürman had met in Nicosia and agreed to continue discussions, including participation in bicommunal initiatives.

The two leaders subsequently attended a joint event in Pyla, although their public differences persisted.

Turkey’s position remains decisive

A Cyprus settlement would require agreement not only between the island’s communities but also on Turkey’s military presence and the system of security guarantees established at independence.

Ankara has long maintained that Turkish Cypriots require effective political equality and credible security arrangements.

Greek Cypriot leaders argue that the continuation of foreign intervention rights and Turkish military deployments would be incompatible with a fully sovereign and reunited state.

The EU cannot resolve those differences independently of the UN process, but it can influence the economic and institutional framework within which a settlement might operate.

A comprehensive agreement would affect property ownership, trade, customs arrangements, border administration and the application of European law throughout the island.

The European Commission has sought a greater role in supporting the UN-led peace process, reflecting Brussels’ interest in progress towards a settlement.

Negotiations face immediate test

The UN Secretary-General’s personal envoy, María Ángela Holguín, has warned that the opportunity for renewed negotiations may be narrowing.

Disagreements over diplomatic representation, contacts with foreign missions and the status of Turkish Cypriot institutions have complicated relations between the two communities.

Christodoulides has also referred to a series of proposals intended to advance discussions, including the future of the fenced-off area of Varosha. Their full contents have not been publicly disclosed.

The proposed EU–Turkey meeting offers a separate diplomatic channel through which Brussels can assess Ankara’s willingness to support renewed negotiations.

No final date, detailed agenda or list of participants had been publicly confirmed by 18 October.

The immediate test will be whether the parties can agree on the basis for formal talks without attempting to settle disputed constitutional questions before negotiations begin.