The election was important as an adverse result against conflict resolution talks could also affect Turkey's accession to the European Union. Though this election would not directly affect the 2013 Cypriot presidential election, it could set a precedent for coalition alliances. Current negotiations between the two parties concern the establishment of a federation of two states with a loose central government, though implementing the proposal has run into obstacles and northern part of Cyprus have not abandoned a wish for independence. Such hindrances to unification include territorial swaps and property rights of thousands of internally displaced persons.
Parties
Incumbent President Demetris Christofias governed with a coalition of his Communist Progressive Party of Working People and the centrist Democratic Party which has 11 seats. Both AKEL and the centre-right Democratic Rally have 18 seats. However, DIKO dropped out of the coalition in August 2011, forcing AKEL into a minority position in the house of representatives. Other parties include: the Movement for Social Democracy , the European Party and the Ecological and Environmental Movement.
Campaign
DIKO has criticised Christofias' offer for a rotating presidency with Turkish Cypriots as part of deal to settle the Cypriot conflict. The incumbent government was also criticised for its "slow response" to the financial crisis, in which Cyprus experienced its first recession in more than three decades.
Opinion polls
The opposition centre-right Democratic Rally showed a slight lead of the AKEL Party. Though it was still forecast to fall short of a majority in the 59-seat parliament.
Results
Democratic Rally finished with 34.27 percent and AKEL followed with 32.67 percent. The high abstention rate of 21% was also noted considering that voting is compulsory.
Reactions
An op-ed in the Turkish Hurriyet suggested two repercussions: an impact on the presidential election; and an effect to the United Nations-led direct reunification talks. This could be further hurt as the junior members of the governing coalition had shown signs of a rift with AKEL and Christofias over the reunification talks, as well as social and economic policies. It suggested a "grand coalition," though acknowledging it was a massive task due to the burgeoning ambitions of both the two biggest parties for the presidency between incumbent Christofias and the DISY's Nicos Anastasiades. It also pointed out that though AKEL still had wide-backing their overall performance of the government had lost some support. Additionally, it suggested peace talks would add pressure to Northern Cyprus should a grand coalition come to fruition and bring in a "strong leadership...to engage in a give-and-take." The first test of such a possibility would be the election of the parliamentary speaker.
would produce the best chance ever for a Cyprus settlement. – Hurriyet
Aftermath
A coalition government was formed in 2008 between the incumbent AKEL and DIKO parties. However, on 3 August 2011 DIKO withdrew from the coalition citing its differences over resolution of the Cypriot conflict and consequently leaving AKEL with a minority government. Following a meeting with President Dimitris Christofias, party leader Marios Garoyian said that "despite our continued efforts and repeated appeals, unfortunately, the wished-for understanding between political forces which is so needed in these crucial moments for our country couldn't be achieved." Part of Garoyian's demands, following his criticism of Christofias, was that the president withdraw proposals for a rotating presidency of a potential unified Cyprus. Government spokesman Stefanos Stefanou said that though Christofias regrets DIKO's withdrawal from the government he would go ahead with a cabinet reshuffle: "The aim is for the new government is to confront the challenges our country faces with dynamism and determination." He also added that the government would not withdraw proposals during an "intensified period of negotiations" following UN Secretary-Genera; Ban Ki-moon's urging to resolve all core issues by October, including resolving the matter of private property losses from the war.