Turkish PM slams EU decision, vows more reforms

ANKARA, Dec 12 (Reuters) Turkish Prime Minister Tayyip Erdogan today condemned a decision by the European Union to partially suspend his country's accession talks but vowed to press on with reforms aimed at preparing Ankara for membership.

EU foreign ministers decided on Monday evening to suspend Turkey's accession talks in eight of the 35 chapters, or policy areas, into which the process is divided following Ankara's continued refusal to open its ports to traffic from Cyprus.

''This decision is unfair to Turkey ... Despite our efforts, Turkey-EU relations are passing through a serious test,'' Erdogan told members of his ruling AK Party.

''Our reform process will continue with the same decisiveness,'' said Erdogan, whose government has pushed through a heavy programme of political, social and economic reform in a bid to meet EU demands.

Foreign Minister Abdullah Gul said the EU ministers' decision betrayed ''a lack of vision''.

EU debate over 'punishing' Turkey mirrors deeper-running differences within the bloc over the desirability of admitting a large, relatively poor and predominantly Muslim country. France and Austria, among others, view Turkey's candidacy sceptically, while Britain backs membership as an important strategic move.

In encouraging news for Ankara, EU Enlargement Commissioner Olli Rehn said today the bloc was ready to open new negotiating chapters with Turkey soon.

''Turkey is ready to proceed as soon as possible ... with the opening of chapters for which technical preparations have been completed,'' Rehn told a news conference in Strasbourg, France.

Separately, EU sources said current EU president Finland hoped to restart talks before the end of the year, possibly on the economic and monetary affairs chapter.

CYPRUS On the vexed Cyprus issue, Erdogan sounded a defiant note, saying Turkey would take no unilateral moves to resolve the row.

Last week, Turkey had mooted the possibility of opening one port to Cypriot shipping for one year, on unilateral basis. His latest remarks suggested that proposal no longer stood.

Turkey has no diplomatic relations with Cyprus, an EU member since 2004, and instead backs breakaway Turkish Cypriots in the north of the divided Mediterranean island.

Ankara says it will not open its ports to the Greek Cypriots until the EU lifts trade restrictions against the Turkish Cypriots, a move so far blocked by Cyprus.

Turkish financial markets ended mixed as investors digested the full impact of the EU decision. The lira closed 0.5 percent firmer to the dollar, but shares ended modestly lower. There was a general sense of relief the EU had not punished Ankara more.

Deniz Baykal, head of the opposition Republican People's Party (CHP), accused the government of mishandling EU ties.

''Despite this government being ready to make every kind of concession in EU relations, we have reached this stage of deadlock... Lots of talking has brought us to a quick divorce,'' Baykal told his centre-left but nationalist-minded CHP.

Turkey began EU entry talks barely 15 months ago but is not expected to join the wealthy bloc for many years, if ever. Polls show support for EU membership falling here.

Cyprus has been split on ethnic lines since Turkey invaded the north in 1974 after a brief Greek Cypriot coup aimed at uniting the Mediterranean island with Greece.

REUTERS PDM RN2207