The US also said it would reward Turkish Cypriots for voting in favour of the plan, but did not provide details of the assistance it would provide.
EU enlargement commissioner Guenter Verheugen denied co-operation with authorities in the north to boost its economy in recognition of a Turkish vote in favour of uniting the island amounted to recognition of the self-declared Turkish Republic of Northern Cyprus.
Announcing the aid package, EU foreign ministers reiterated their regret at the Greek Cypriot rejection of the plan. The EU “is determined to put an end to the isolation of the Turkish Cypriot community and to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community,” the ministers said.
“The council (of EU ministers) recommended that the E259 million ($418 million) already earmarked for the northern part of Cyprus in the event of a settlement now be used for this purpose,” they said, referring to the aid package prepared by the European Commission in preparation of a hoped-for yes vote.
