In this book, the interaction between internal and external dynamics in the Cyprus conflict is assessed via a theoretical analysis, grounded on a detailed empirical and historical examination of the problem. It is posited that external factors, albeit expedited by internal ones, bear greater weight than the latter in determining the outcome of the dispute. Since the theoretical perspectives employed fall short of fully explaining the conflict, a middle position crossing levels of analysis and emphasizing the interplay of internal and external factors is explicitly recognized. Consequently, the ‘nature of the state’ is viewed in the context of wider geopolitical and strategic interests in the region. Further, the role of the EU as a potential diplomatic broker in the conflict is analyzed with a view to assessing the changing nature of power in the area and the subsequent implications of this shift for regional security and conflict resolution. The theoretical section also explores the basis for interethnic cooperation and conflict, competing identities as well as their interaction with system level factors. Moreover, national/ethnic identity factors and trends are assessed in terms of their impact on foreign policy predispositions and prospects for reconciliation between Greek and Turkish Cypriots, both bilaterally and in the context of the European Union.