Turkish Cypriot leader Rauf Denktash today surprisingly appointed the leader of a pro-EU party to form the next government in the breakaway state.
The move came two weeks after elections ended with parliament evenly split between parties favouring and opposing a UN proposed plan to reunify the war-divided Mediterranean island and chances of forming a new administration appeared slim.
If a new government is not formed by the beginning of February a new election must be held.
Denktash has opposed the UN plan.
The Republican Turkish Party of Mehmet Ali Talat, who was named to form the next government, is in an alliance with another pro-EU party and together they have 25 seats in the 50 member parliament.
Talat has 15 days to form a new government. He has said he could form a coalition with any party on the condition that the new government presses forward with the UN plan.
The former government was headed by Dervis Eroglu of the National Unity Party which has opposed the plan.
Turkish Cypriots are under increasing pressure to find a solution to the decades-long division of the island with Cyprus set to join the European Union in May.
The bloc’s laws and benefits will not apply to Turkish Cypriots until the island is reunified.