Ten years later, the likelihood of a military confrontation between Turkey and Greece is close to zero. The traditional rivalry between the two Aegean neighbors has largely melted away. Significant progress has been made over the past ten years, especially since 1999. Nevertheless, two major challenges remain in the way of achieving a sustainable and lasting detente: the territorial disputes in the Aegean and the Cyprus issue.

Regarding the Aegean issue, Ankara and Athens have not resolved their territorial disputes but they no longer perceive the issue as posing an existential threat. They can handle their differences. This was well illustrated in late May after a mid-air collision over the Aegean Sea between one Greek and one Turkish fighter jet. The Greek pilot died. Swift communication between the foreign ministries and militaries of the two countries ensured that the incident did not escalate into a major row. Just as significant was that Greek Foreign Minister Dora Bakoyannis went ahead with a planned visit to Istanbul on June 10 despite the incident.

But Turkey and Greece cannot pretend that the Aegean disputes do not exist. Currently, there is a window of hope for tackling these challenges, and both Turkey and Greece should not miss such a chance.

On the second matter, so far Turkey and Greece have succeeded in decoupling their bilateral relationship from the thorny Cyprus issue and its repercussions for Turkey's EU membership bid. It goes without saying that a major derailment in Turkey-EU relations would certainly complicate and possibly threaten Turkish-Greek rapprochement. It is crucial for Athens to make sure that the dispute over Cyprus does not cause a major setback for Turkey's accession talks. If it did, Ankara would blame Athens for its unwillingness to restrain the hard-line policies of the Greek Cypriots. In the absence of progress regarding Cyprus, the current Turkish-Greek rapprochement is unsustainable in the long term.

The stakes to bring about a complete normalization of relations between Turkey and Greece are high. But a lasting solution would bring significant benefits to both neighbors -- given the ample room for bilateral cooperation in the economic, trade, tourism, and energy sectors.

Dr. Wolfango Piccoli is a Turkey analyst with Eurasia Group, a political risk advisory and consulting firm. He has a long-standing research interest in Turkey and has spent several years studying and living in the country. Prior to joining Eurasia Group, he was Assistant Professor in the Department of International Politics of the University of Wales, Aberystwyth. His publications include a co-authored book entitled Turkey at the Crossroads: Ottoman Legacies and a Greater Middle East.