EU confident Turkey entry talks will start on time

The European Union's enlargement chief said yesterday he was reasonably confident that Turkey's membership talks would start as planned on October 3, in spite of calls for Ankara to recognise Cyprus before that date.

"If we stick to what we have ourselves decided at the highest political level in the European Council, as we should, I am reasonably confident that the negotiations shall start on October 3," Enlargement Commissioner Olli Rehn said.

The comment was in a copy of a speech he gave in the German city of Hamburg yesterday.

EU leaders agreed in December that Ankara could begin talks to join the bloc on October 3.

But last week French Prime Minister Dominique de Villepin said it was inconceivable for Turkey to begin negotiations without recognising Cyprus, which became an EU member last year.

Mr Rehn's comments failed to reassure market analysts who have growing doubts about prospects for Turkey's EU membership talks.

"We see the choice of words as a negative for markets, especially as up until recently Mr Rehn's comments have been the most encouraging of EU officials for Turkey," said Simon Quijano-Evans of Bank Austria Creditanstalt.

"The quote in our view would confirm a move one step down the ladder in Mr Rehn's perception of the 3 October date," he said, citing more bullish sounding comments from Mr Rehn recently.

But Turkish currency and bond markets showed no reaction. Analysts said negative comments on Turkey's entry talks have already priced in.

Turkey signed a protocol last month extending its customs union to new EU members including Cyprus, fulfilling the requirements set by the EU to begin membership talks.

However, Turkey made it clear the signing did not change its position over the divided island whose Greek Cypriot government is viewed in Brussels as the sole legitimate authority.

Ankara recognises only a breakaway Turkish Cypriot enclave in the north. The island has been divided along ethnic lines since Turkish troops invaded in 1974 after a brief Greek Cypriot coup backed by the military junta then ruling Greece.