A bi-zonal, bi-communal federation in Cyprus is the only compromise solution that can terminate the Turkish occupation and lead to the reunification of the island and its people, Government Spokesman Stephanos Stephanou said on Friday.

Addressing an event, on the occasion of the commemorative events of the 38th anniversary of Turkey’s invasion in Cyprus, Stephanou noted that Ankara is not aiming at the reunification of the island, but at a partition and a two-state solution.

He added that the government addresses the Turkish approach, by insisting on the implementation of the Cyprus-related UN resolutions and the solution foreseen by them, a bi-zonal, bi-communal federation, with political equality. He noted that all Cyprus Presidents, with no exception, negotiated on this basis.

On Turkey’s threats against the Republic of Cyprus, Stephanou said the government managed, through a coherent and targeted policy, to bring the international community on Cyprus’ side, and is very active, both in the UN and in other international organisations.

Referring to Ankara’s refusal to recognize Nicosia’s Presidency term at the Council of the EU, the Government Spokesman said that Turkey is creating more problems to itself. The Republic of Cyprus, he went on, is committed to an objective chairmanship and will act as an honest broker within the EU.

Stephanou also expressed the view that the Greek Cypriot side is not opposing confidence-building measures, but said that “according to our position, negotiations should carry on”.

On the economy, the Government Spokesman referred to “great challenges” ahead and added that “we will tackle these challenges in a positive light, in the best possible way and to the benefit of our people and our land”. This is a hard effort, but we believe we can manage to overcome difficulties, Stephanou concluded.

Cyprus, which currently holds the six-monthly rotating Presidency of the Council of the EU, has been divided since 1974, when Turkish troops invaded and occupied its northern third.

A new round of peace talks started on September 2008 to find a negotiated settlement that will reunify the country, under a federal roof.

Ankara does not recognize the Republic of Cyprus and stated that it will not talk to Nicosia during its EU Presidency term, in the second half of 2012. Numerous officials from the EU and the member states reacted by saying that the EU Presidency should be respected by all, including countries that aspire to join the bloc.

Following a decision by Nicosia to begin natural gas and oil exploration in its exclusive economic zone last September, Ankara threatened the Republic of Cyprus with military action.

The government of Cyprus has protested to the UN and the EU Turkey’s moves, saying it has a sovereign right to exploit its natural resources, pointing out that Greek Cypriots and Turkish Cypriots will benefit from any benefits that may come from oil drilling.