This article is part of the Cypriot presidency of the EU special report.

BRUSSELS — Diplomats across NATO’s and the European Union’s headquarters in Brussels are bracing for Cyprus, a neutral country, to take over the EU Council presidency in January at a time when defense is top of the agenda.

The big reason for concern is that Cyprus has long-standing tensions with Turkey and — in alliance with Greece — is refusing to open the door to closer military cooperation between the EU and Ankara.

“We are very worried” about Cyprus letting its hostility to Turkey get in the way of Europe’s defense priorities, said one senior European government official, referring to issues like Turkey’s bid to take part in joint procurements financed by the EU’s €150 billion Security Action for Europe scheme as well as broader EU-NATO integration.

That’s going to be a big challenge for a country of 1.3 million people on an island divided into an internationally recognized Greek-majority country and an ethnic Turkish entity protected by Turkish troops and recognized as an independent country only by Ankara.

However, Cyprus, which already held the presidency in 2012, insists it will make efforts to warm ties.

In an interview with POLITICO, Cypriot President Nikos Christodoulides said the key is getting Turkey to agree to let Cyprus into the Partnership for Peace program, which is seen as a first step toward NATO membership. Cyprus would then gradually remove impediments to closer cooperation between the EU and Turkey.

“We can envision a step-by-step approach with steps by Turkey on Cyprus joining the PfP and in parallel positive steps on EU-Turkey relations,” Christodoulides said.

The EU presidency rotates among member countries every six months; the main job of the holder is to chair meetings of EU ministers and represent country positions in legislative negotiations with the Commission and the European Parliament.

During its presidency, Cyprus will need to advance several defense files, including national plans for implementing SAFE, which need to be approved by the Council. It will also likely handle negotiations with the European Parliament on the Commission’s recent proposal to cut red tape for defense companies.

“I hope these obligations to develop our defense capabilities will move ahead despite who is in the presidency,” Defense Commissioner Andrius Kublius told POLITICO.

Although they are separate organizations, there is a lot of overlap between the EU and NATO. They have 23 members in common, share the same city — Brussels — for their headquarters, and are working together increasingly closely.

The last time a non-NATO European country headed the Council was in 2019 under Finland — years before Russia’s unprovoked full-scale attack on Ukraine. The war made defense a top EU priority and Finland joined the alliance as result. The bloc now has a defense commissioner for the first time, and is making enormous efforts to help countries boost defense spending.

Cypriot officials underline they are aware of the importance of the issue. “Defense and security, as well as support for Ukraine, will be top priorities for the Cyprus presidency,” Deputy Minister for EU Affairs Marilena Raouna told POLITICO.

 But the animosity between Cyprus and Turkey could torpedo efforts to strengthen defense ties with Ankara.

“We need to show unity” in the face of the Russian threat, said one NATO diplomat. And locking Turkey out of upcoming EU defense plans would “undermine that,” they said.

Talking Turkey

The tangled relationship between Cyprus and Turkey will be a big theme of the presidency.

Nicosia stresses that it’s Turkey that is keeping it out of NATO.

 “The fact that Cyprus is not in NATO is not a matter of choice; if it could, it would join the alliance tomorrow,” said Raouna.

The presidency comes as pressure grows to deepen defense cooperation with Turkey. The country has the second-largest military in NATO after the U.S., a defense industry making NATO-standard weapons and components wanted by European countries, and is also seen as a possible participant in any peacekeeping mission to Ukraine.

But Cyprus is blocking some of those efforts.

Both Greece and Cyprus refuse to allow Turkey to join the European Defence Agency, an EU intergovernmental body. In retaliation, Turkey is blocking NATO from sharing classified information with the EDA, despite the agency’s recent calls for closer ties with NATO including to “ensure that EDA and NATO can exchange classified information,” according to a document seen by POLITICO.

“Generally, everyone would benefit if that conflict would be put to rest,” the NATO diplomat said. If classified information were shared freely shared between the EU and NATO, “you can have more in-depth discussions if you know what the other side of town knows,” they said.

Although Turkey is an applicant to join the EU, allowing it to take part in SAFE deals also requires the unanimous support of member countries — something recently agreed for Canada. Neither Greece nor Cyprus is keen on that happening.

“Cyprus is a member state under Turkish occupation. Occupation of European territory. EU defense funds cannot go to Turkey without any progress being made,” said Raouna.

That’s not leaving much optimism for the Cyprus presidency among Turkish officials.

“For six months, EU integration with NATO—especially with Turkey—will be stuck,” said Selim Yenel, former Turkish ambassador to the EU and now chair of the Global Relations Forum, an Istanbul-based think tank.