This isn't so much an issue of the lack of freedom of movement as much as it touches upon property rights, the right to commerce. A lot of the properties in the north were owned by displaced Greek Cypriots, and it's those limitations that have been problematic. In other words, people with land there, people who grew up there, are not allowed to move. As I wrote in the thread that Migeru linked to, Cyprus and Papadapoulos have already agreed to a limitation on movement in the 2002 Annan deal. This would apply to Greek Cypriots who do not have their origins in the north. In the 2004 deal, there was also a limitation on property owners AND, as well, the gov't of Cyprus would have to cover any restitution to these property owners, out of their own tax base.

Regardless, given the happenings this week, I'd say that for Cyprus, entering the EU has been a bad deal, and they certainly haven't gained from it, and likely won't. I'm starting to think they would have been better off outside the EU precisely because they have been blamed now for the partition. Before the referendum during the week of accession, they had the world's sympathy. Outside the EU, an agreement would have had to have been made based on reciprocal negotiations, but inside the EU, or together with accession, the reunification deal was negotiated by others. Their economy, such as it was, really doesn't gain much from the EU since it relies on 3 factors, two of which have been curtailed somewhat by accession.