There is not that much good news out of Europe these days, so it is satisfying to be able to welcome a development with the potential to thaw out one of the continent’s oldest “frozen conflicts”. Ever since the Turkish invasion and the partition of Cyprus in 1974, the chances of reunification have been bedevilled by the different political timetables and the changing political configurations of the two parts of the island. Whenever one community or its leader seemed to be leaning toward a settlement, the other was opposed or indifferent.

That was the case when Greek Cypriots voted against Kofi Annan’s plan for reunification in 2004 after Turkish Cypriots had endorsed it. More recently, talks have languished in part because the Greek Cypriot president, Nicos Anastasiades, faced a leader on the Turkish side who was less committed to the attempt to end the stalemate. Now that leader, Derviş Eroğlu, has been displaced in presidential elections by Mustafa Akinci, a moderate strongly in favour of a vigorous resumption of the talks. The two men seem natural partners for peace.

Mr Akinci has a record of discreet and constructive participation in the informal, pragmatic cooperation over issues of sanitation, water and pest control that always went on even when relations between the communities were otherwise dire. Mr Anastasiades was one of the few Greek Cypriot politicians to be strongly in favour of the Annan plan. Personalities matter, but there are other critical factors at work which give considerable reason for hope.

Both sides of the island are in difficult economic situations. An austerity programme imposed by the European Union has squeezed Greek Cyprus hard, while Turkey has cut financial assistance to northern Cyprus to the bone. A settlement would give both economies a boost. There could be rapid exploitation of offshore gas without the complications arising from continued political division. Tourism could expand, with more European tourists coming to an undivided island, and more Turkish tourists heading to Cyprus as well. Direct access to Turkey for Greek Cypriots – it is, after all, less than 50 miles away – could bring many benefits. And a great deal of property that is unsaleable because title to it is confused or contested could become attractive to both Cypriot and foreign buyers.

Hope of economic reward is important, but there has also been a recent burgeoning of bicommunal contacts. Chambers of commerce from the two sides have held joint events in London, for example, while an academic conference recently took place in Ankara. There has also been a real, if still fragile, growth in trust. Since the opening of the border in 2003 visits back and forth have made two communities which had lived apart for a generation more familiar with one another, even if hopes that this alone would pave the way to settlement were overblown. With political leaders in place who have the right instincts, with the economic advantages plain to see, and with people on both sides readier for change, there is now a real chance to make the island one again.