The Council's legal experts have stated that Turkey's declaration about not recognizing Cyprus should not be an obstacle for starting the EU talks in October, with a compromise supported by France on the way, according to diplomats.
The compromise might take the form of a counter-declaration, stating that the customs union protocol must be fully implemented
However, both the member states and the commission are ready to step up pressure on Turkey to quit banning ships and planes from Cyprus in their ports and air space, stressing it is not in line with the customs union agreement Turkey signed in late July.
http://euobserver.com/?sid=9&aid=19756
Well, this is what I had predict: http://www.cyprus-forum.com/viewtopic.php?t=3029
I think this is enough for a first step.