There have been numerous efforts to unite the island under the auspices of the UN, although, to date, these have been unsuccessful. In the referendum held at the end of April 2004, the plan for the reunification of the island, put forward by UN General Secretary Kofi Annan, was rejected when more than three-quarters of Greek Cypriots voted against the proposal. Cyprus therefore remained divided and only the Greek Cypriot state became a full member of the EU when it expanded on the 1st May 2004. The EU has however signalled that it is keen to seek ways to end the economic isolation of the Turkish Cypriot state.

The capital of the Republic of Cyprus, Nicosia, is located approximately 20 kilometres inland in the Messaoria Plain and has a population in the region of 200,000 people. All the island's other major cities are on the coast. Limassol is the second largest city in Cyprus and the island's biggest port, while the popular holiday resorts of Larnaca and Paphos are the third and fourth largest cities respectively. The official languages of the Republic are Greek and Turkish, although English is widely spoken and regularly used in commerce and government.

The Greek Cypriot economy of the south is much more prosperous than that of the Turkish Cypriot community, which, due to a lack of international recognition, has had difficulty arranging foreign financing and investment to aid its economic development. As a result the north relies heavily on economic support from Turkey. In 2002, the Turkish government provided $200 million US and has pledged a further $450 million US for the 2003 to 2005 period.

The Republic of Cyprus has developed a modern and thriving open free market economy which, according to the Central Bank of Cyprus, recorded real GDP growth of 4.1 per cent in the period 1999 to 2002. Figures from the European Central Bank annual report for 2002 put per capita GDP in Cyprus at 71 per cent of the corresponding EU average.

The service sector now dominates the economy and is responsible for employing about two thirds of the workforce. The tourist industry is particularly important, with other important industries in this sector including finance, insurance and business services. The country's main exports include clothing, footwear and textiles as well as chemicals and citrus fruit, with the majority of trade taking place with EU countries. Lebanon, Egypt, the Gulf States and Libya are also important trading partners.

The island occupies a strategic location at the crossroads between Europe, Asia and Africa and has an extensive transport infrastructure. Cyprus has two international airports situated near Larnaca and Paphos, which together cater for over 30 international airlines and more than 400 scheduled flights a week. London can be reached in approximately four and a half hours, while Frankfurt, Paris and Zurich are all less than 4 hours away. The island also benefits from several ports, which have facilities for handling a wide range of cargo, and there are in the region of 100 shipping lines regularly connecting the island to several continents.

Quality of life on the island is excellent, with little pollution, a low crime rate and good housing conditions. The school system is of a high standard and all major towns are home to private schools offering tuition in a variety of languages including English, French, Italian, Armenian and Arabic. In addition, the cost of living is relatively low compared to countries offering a comparable standard of living.