A number of developments in the five-year period that elapsed between the 1998 and 2003 elections significantly shifted the general context in Cyprus and revived hopes for an end to the division of the island. In internal Turkish Cypriot politics, Derviş Eroğlu and his National Unity Party (Ulusal Birlik Partisi) – UBP continued in power, this time with a new coalition partner, the Communal Liberation Party (Toplumcu Kurtuluş Partisi) – TKP, led by Mustafa Akıncı.

The two parties had already shared power, for one year, in mid-1985, again under Eroğlu, with TKP under its founder Alpay Durduran. One week after the signature of Cyprus’ accession treaty to the European Union (16 April 2003), the Turkish Cypriot leader Rauf Denktaş announced the lift of movement restrictions across the line dividing the island since 1974.

Negotiations between Cyprus and the European Union on the former’s accession to the Union reached a conclusion stage in the course of 2002. There had been no Turkish Cypriot participation in the process.

The Cyprus Problem went through a process of “proximity talks” between the two leaders, President Glafcos Clerides and Rauf Denktaş, under the auspices of the UN Secretary General Kofi Annan, during the year 2002. Following numerous intensive exchanges between the two sides, Kofi Annan presented to them a “Comprehensive Plan for the Settlement of the Cyprus Problem”, on 11 November 2002, labelled The Annan Plan. This move was, on the one hand the result of the proximity talks, and on the other hand, an attempt by the international community to promote a solution along with accession of Cyprus as a whole to the European Union. The “deadline” was set to 1 May 2004, the day the EU enlargement with ten new members would take effect. The decision on accession taken on 12 December 2002 set no requirement for a solution to the Cyprus Problem by that date. The new EU members signed the Treaty of Accession in Athens, on 16 April 2003.

In November 2002, Tayyip Erdoğan and his Justice and Development Party won the elections and, for the first time, a Turkish prime minister acknowledged that the Cyprus Problem was an obstacle to Turkey’s pathway to the European Union and that reaching a solution was necessary. This was against Ankara’s standing position that the Cyprus Problem was solved in 1974, which implied that the present status on the island was the solution. The new stance conflicted with instances of power in Turkey, and, most importantly, with the positions of the Turkish Cypriot leadership, in particular Rauf Denktaş. The latter was facing health problems at the time and underwent a heart surgery while in New York for talks. When he returned to Cyprus in early January 2003, there was an apparent feeling that Ankara was sidelining him.

The prospect for accession to the European Union and for a solution to the Cyprus Problem led Turkish Cypriots to a huge wave of mobilization demanding their leadership to adopt and promote these two targets. With this aim, more than 90 organisations (trade unions, political parties and other NGOs) joined forces from late 2000 onwards in a movement under the “This country is ours” platform and organized multiple rallies. Mobilisation grew larger and larger, with tens of thousands taking to the streets as the accession date was approaching, and following the presentation of the Annan Plan.

The change in power in the Republic of Cyprus, in February 2003, when incumbent Glafcos Clerides lost the election to Tassos Papadopoulos, known for his hardline stance on the Cyprus Problem, was for some circles a development non-encouraging the finding of a solution. Along with the intransigent stance of Rauf Denktaş in a seemingly last attempt by Koffi Annan to put forward the Annan Plan, in March 2003, developments contributed to the Plan appearing a temporarily forgotten affair. In reality, however, Turkish Cypriot political parties and other organisations continued an information campaign about the Plan and its provisions. This was not the case for the Greek Cypriots, who considered the Plan finished.

In an unexpected move, on 23 April 2003, just one week after the signing in Athens of the EU Accession Treaty by the new members, Rauf Denktaş lifted movement restrictions between the two sections of the divided island. For the first time since the summer 1974, contacts between the people were possible, with unsurmountable obstacles lifted.

In internal Turkish Cypriot politics, the coalition of UBP and TKP collapsed in June 2001, following interferences by Ankara; this followed an incident, in which TKP leader Mustafa Akıncı challenged the uninvited intervention of a military chief in an event to inaugurate new police headquarters in Nicosia, in January 2001. Akıncı’s rift with a military and his disagreement with an economic package agreed with Turkey prompted initiatives for his removal from power.

The Democratic Party, which emerged in 1993 as a major opponent to the UBP, returned to power joining again its rival party and its leader Dervis Eroglu.

In view of the elections scheduled for December 2003, there appeared new political groups, the Barış ve Demokrasi Hareketi – BDH [Peace and Democracy Movement] by Mustafa Akıncı and Çözüm ve AB Partisi – ÇABP [Solution and European Union Party] by Ali Erel, chairperson of the Chamber of Commerce and Industry. The two new formations signed in September 2003 a Protocol with the Republican Turkish Party United Forces (Cumhuriyetçi Türk Partisi Birleşik Güçler) – CTPBG in which they agreed to seek a solution based on the Annan Plan, by May 2004 and for the accession of a united Cyprus to the European Union. They would conduct the election avoiding any action that would harm each other, would form a coalition government in respect of the results and would remove Rauf Denktaş from the role of the negotiator in the Cyprus talks.

The National Unity Party (Ulusal Birlik Partisi) – UBP of Derviş Eroğlu and its partner in power, the Democratic Party (Demokrat Partisi)  – DP, with Serdar Denktaş contested also the election along with two minor conservative parties, the Milliyetçi Barış Partisi – MBP (Nationalist Peace Party) and the Kıbrıs Adalet Partisi – KAP (Cyprus Justice Party).

The high stakes of the election led to the conservatives and the opposition occupying an equal number of seats, 25 – 25. The Republican Turkish Party New Forces won the first place with 35.17%, only 2.2 points ahead of the National Unity Party, while Akıncı’s Peace and Democracy Movement secured 13.2%, a mere 0.3 points more than the Democratic Party. However, the Democratic Party secured one seat more than the BDH thanks to the method of allocating seats in constituencies.

The Republican Turkish Party New Forces won 35.95% of the vote in the town of Nicosia; its highest score was in communities with Turkish Cypriot exclusive population (38.5%) or in majority over settlers from Turkey (37.65%). In exclusively settler communities, CTP received a mere 13.89% against 44.88% for the National Unity Party and 28.05% for the Democratic Party. UBP secured the top place in the town of Famagusta (36.87%), where a considerable number of settlers live, with the CTP only two points behind. The best result for BDH was in the town of Nicosia 18.38% and among Turkish Cypriots (15.11%). In the absence of a settler party contesting the election, settlers’ vote benefited the conservative parties, which secured around 84%.