Tassos Papadopoulos, the Greek Cypriot leader, is set to discuss strategy with Greek leaders in Athens on Monday, after making an unexpected deal at the weekend to revive United Nations-backed re-unification talks with the Turkish Cypriots.
The new talks, due to start later this month, are not expected to bring an early agreement on ending the island's 32-year division.
But they could help avert a possible crisis this autumn between Turkey and the European Union, over Ankara's refusal to recognise Cyprus and open Turkish ports and airports to Greek Cypriot traffic, unless the economic isolation of the Turkish Cypriots is lifted.
"Movement on Cyprus after a two-year hiatus is a step forward. More flexibility in Nicosia can only assist the EU-Turkey relationship," one diplomat said. Mr Papadopoulos's decision to unfreeze relations with the Turkish Cypriots came amid increased pressure from Athens for inter-communal talks to be re-started.
As Greece strengthens its support for Turkey's EU membership bid, Costas Karamanlis, the prime minister, has pressed for regular communication to be restored between the Greek and Turkish Cypriot leaders.
"This is a new opening… but goodwill will be needed" Mr Papadopoulos said after a three-hour meeting on Saturday with Mehmet Ali Talat, the Turkish Cypriot leader, which was chaired by Ibrahim Gambari, a UN special envoy.
Kofi Annan, the UN secretary general, later made a congratulatory phone call to both Cypriot leaders, officials said.
Contact between the Greek and Turkish Cypriot leadership had been frozen as a result of the Greek Cypriots' rejection of a detailed UN re-unification plan at a referendum in 2004, one week before Cyprus joined the EU. Mr Papadopoulos claimed the plan was unworkable.
The referendum outcome stirred resentment among Turkish Cypriots because it excluded them from EU membership, in spite of having overwhelmingly backed the UN plan in a separate referendum.
The deal brokered by Mr Gambari calls for a technical committee to start discussing co-operation on "day-to-day" issues such as water and energy management, provided that Mr Papadopoulos and Mr Talat in the meantime exchange a list of substantive improvements to the UN peace plan, for study by Greek and Turkish Cypriot experts.
"This was a compromise," said Mr Talat, who has few concerns about the UN plan but wants a deal that woud secure energy and water supplies for the self-declared Turkish Cypriot republic in north Cyprus.
Mr Talat has less room for manoeuvre than Mr Papadopoulos because of the strong influence wielded by the Turkish military and the Ankara government in the north.
The two leaders also undertook to end the so-called "blame game," referring to the Cypriot leaders' practice of venting mutual recriminations whenever their talks have stalled.
Source: Financial Times