Mr Clerides may accept Mr Denktash's demand for a rotating federal presidency: a Greek Cypriot one time, a Turkish Cypriot the next.
Mr Ozal claimed PPI "might have been victim of those whose purpose is first and foremost to undermine the Turkish Cypriot economy and the interests of Turkey".
The Turkish Cypriot leader, Rauf Denktash, says the decision to allow Cyprus to apply for EU membership without a political settlement will make the division of the island permanent.
He was born in east London to a Turkish Cypriot mother and an Antiguan father and has been involved in anti-racism campaigns, acting as an ambassador for the group Kick It Out.
On the Turkish Cypriot side, Mehmet Ali Talat also says he is committed to a deal, and his time may be running out: his nationalist opponents thumped his party in legislative elections recently, and Mr Talat could be turfed out of office next year.
But if talks fail, the EU has said it is prepared to admit the Greek part alone, leaving the impoverished Turkish Cypriot community out in the cold. (The Greek bit was one of the ten countries invited to join in Copenhagen.) Were that to happen, the Greek Cypriots would most likely oppose Turkish membership for some years.
Under a UN special envoy, Alexander Downer, the Greek-Cypriot president (Demetris Christofias) and his Turkish-Cypriot counterpart (Dervish Eroglu since March 2010), have held 100 meetings since September 2008.
While Mr Karamanlis is keen to help Turkey along the road to EU membership, he must contend with elderly Greek-Cypriot leaders who doubt whether they can rub along with their Turkish-Cypriot counterparts in a federal state.
An exaggeration, no doubt, but such was the extent of Turkish-Cypriot loathing for him.
Turkish-Cypriot wholesalers are keen to sell their fruit and vegetables in the south.
ECONOMIST: Is there still a chance for a settlement in Cyprus?
Mr Denktash, whose Turkish-Cypriot republic in the north remains recognised by no country except Turkey itself, sounds yet more stubborn.
The Oramses are a British couple who bought land in the north from a Turkish-Cypriot and built a holiday home.
The Turkish-Cypriot leader, Rauf Denktash, dug in his heels, demanding international recognition of his breakaway state before talks could begin.
And neither Greek-nor Turkish-Cypriot politicians look likely to come up with a settlement that could satisfy most people in both communities.
ECONOMIST: The island��s Greeks and Turks may yet be reconciled
However the biggest problem is not on the Turkish-Cypriot side, but the lack of pressure on the Greek-Cypriots to make concessions.
ECONOMIST: Northern Cyprus's new president: Enter Eroglu | The
EU's commissioner in charge of enlargement, has met Rauf Denktash, the Turkish-Cypriot leader, for the first time in more than a year.
Many think Cyprus should not have been let in before striking a deal to reunite the Turkish-Cypriot north with the internationally recognised south.
The rapprochement should consolidate over the next few months as the Greek- and Turkish-Cypriot governments adopt measures to help the two economies converge.
ECONOMIST: Is there still a chance for a settlement in Cyprus?
Talk of reaching a framework agreement that is sufficiently robust to win Turkish-Cypriot voters back to Mr Talat is risky and may well not work.
The court heard Nadir, a British citizen of Turkish-Cypriot background, was a well-respected businessman in Turkey and a major employer in Turkey and northern Cyprus.
And, according to one Turkish-Cypriot survey, only 8% want integration with Turkey, against 32% who favour a loose confederation with the Greek-Cypriots, 23% who want full independence and 5% who dream of the old, undivided island.
Mr Davutoglu agrees that decades-old peace talks between Turkish- and Greek-Cypriot leaders should not be open-ended.
Eighteen chapters have been frozen - eight by the EU, because of Turkey's refusal to allow Cypriot ships to use Turkish ports, and the remaining 10 by the governments of Cyprus and France.
Already, some 40, 000 Turkish-Cypriots have taken Greek-Cypriot passports, and another 40, 000 are waiting.
Moreover, it is hard to see how Turkey can ever join the EU without a settlement in Cyprus, since it would first have to recognise the Greek-Cypriot government and abandon the Turkish-Cypriots.
ECONOMIST: Northern Cyprus's new president: Enter Eroglu | The
Eight are formally blocked because Turkey has not kept an agreement to open its ports and airports to traffic from Cyprus, an EU member since 2004 (Turkey does not recognise the Greek-Cypriot republic and insists that Turkish north Cyprus is being unfairly blockaded).
Greek-Cypriot hoteliers and builders are looking to Turkish-Cypriots to fill a worsening labour shortage in the faster-growing and by now very much richer south.
ECONOMIST: Is there still a chance for a settlement in Cyprus?
Embarrassingly for Mr Denktash, at least 2, 000 Turkish-Cypriots are said to have applied for Greek-Cypriot passports in the past two months.
As the Greek-Cypriot president, Tassos Papadopoulos, gleefully noted in December, he will have many opportunities to veto Turkish entry: the negotiations could last for ten years or more.
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