CRUCIAL talks on a federal solution for Cyprus at the Swiss resort of Mont Pelerin have hit an impasse, prompting officials to return to the island yesterday.

Cyprus government spokesman Nicos Christodoulides said that United Nations-backed talks on how much territory Greek and Turkish Cypriots would administer under an envisaged federation had proven “inconclusive.”

“This isn’t good for anyone. We are not at all happy with the outcome,” said Mr Christodoulides after the talks, which began 18 months ago, broke off shortly after midnight on Monday.

The UN said that President Nicos Anastasiades and Turkish Cypriot leader Mustafa Akinci had failed to narrow their differences.

A deal on territory would have paved the way for a final summit bringing together Greece, Turkey and former colonial ruler Britain to agree on security arrangements for the reunified island.

The UN said that Mr Anastasiades and Mr Akinci had decided to return to Cyprus “to reflect on the way forward.”

Mr Christodoulides said that the main area of disagreement was on the amount of territory that would make up the federal zones each side would run.

Greek Cypriots sought the return of enough territory, following the Turkish invasion in 1974, to enable up to 100,000 displaced people to return to the homes and property they lost during the war.

That would increase support for any accord in a plebiscite and reduce costs involved in compensating those unable to return.

Mr Akinci’s spokesman Baris Burcu accused the government of being inflexible and of keeping a “maximalist” approach.