It does not cause a problem for Turkey as long as this prospect cooperation is not against a third country. Personally, I support regional cooperations coz it is the real warranty for the peace. As to Cyprus issue, united or divided, turkish cypriots want the solution (in fact turkish cypriots are happy in their de facto state) but greek side wants a united island without giving any warranty to turkish community and they showed it by refusing Annan's UN plan. Mediation of Greece in Middle east? Mediator should have a positive contribution to the process. Eventhough Papandreu has a peaceful character, greece can not play a constructive role in middle east.
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from the article: Greek PM to Haaretz: We could help mediate Middle East peace agreements