World signals Greek Cypriots under cloud for "No"

World leaders signalled Greek Cypriots will enter the EU under a cloud of disapproval after rejecting reunification, but Turkish Cypriots will see some easing of their isolation because of their "Yes" vote.

Greek Cypriots defied international pressure on Saturday, overwhelmingly voting "No" to a UN-backed plan to end 30 years of partition on the Mediterranean island and usher a united Cyprus into the European Union.

It was a result the EU, the United States and the United Nations had striven to avoid, and the UN said its peace efforts were over.

The long-festering Cyprus problem, which has brought Nato partners Turkey and Greece to the verge of war on two occasions, will now be "imported" into the EU on Saturday with all attendant complexities and emotions.

"The political damage is large," EU Enlargement Commissioner Guenter Verheugen told Germany's ARD Television. "There's now a shadow over Cyprus's membership."

Mr Verheugen said the referendum result, which means only the internationally recognised Greek Cypriots will take up the island's EU membership, would unnecessarily complicate the bloc's relations with Turkey as Ankara itself seeks to join.

The United States, which has said it would not leave the Turkish Cypriots out in the cold if they approved the plan for a loose association of two largely autonomous zones, expressed disappointment at the Greek Cypriot "No."

The Turkish Cypriots, comprising less than 200,000 of the island's 800,000 people, are poorer than the Greek Cypriots in the south because they are only recognised by Turkey and cut off from much of the world.

"We commend all those who voted to approve the plan - particularly a large majority of Turkish Cypriots - for their courage and their vote for peace and reconciliation," a US State Department spokesman said.

The European Commission praised Turkish Cypriots for their "Yes" vote and said it would consider ways to promote economic development in the poorer Turkish half.

Thousands gathered at a square in the northern Turkish half of Nicosia to celebrate their "Yes" vote, waving flags, singing and calling for the resignation of Rauf Denktash, the hardline Turkish Cypriot president who rejected the deal.

The mood on the Greek side was more subdued, with streets and cafes almost empty.

Many Greek Cypriots believed the deal, though it would have allowed more than 100,000 to return to homes under Greek Cypriot administration, did not cede them enough territory.

Turkey's centre-right government had hoped reunification would boost its chances of winning a date for Turkish EU entry talks later this year, critical to luring foreign investment.

But the government has won some goodwill in casting aside past Turkish intransigence over Cyprus and taking the courageous step of publicly defying Mr Denktash, a figure with strong allies in the military.

Cyprus, a former British colony, was racked by ethnic violence in the 1960s and split by a 1974 Turkish invasion after militant Greek Cypriots mounted a coup aimed at union with Greece.

Emotions rooted in that brief war, which drove hundreds of thousands from their homes, run high on both sides of the island.

Turkish Foreign Minister Abdullah Gul said the Greek Cypriot rejection meant partition was now "permanent."