Turkey must overcome internal divisions and get back to long-delayed reforms early next year to show it is serious about wanting to join the European Union, the bloc's enlargement chief said in an interview.

EU Enlargement Commissioner Olli Rehn said he expected more Balkan countries to apply for EU membership following Montenegro's move earlier this month, but urged them not to rush in because they must first show a track record of reforms.

He warned EU hopefuls in south and eastern Europe not to take the financial crisis as a pretext to give up on EU-minded reforms, adding that these countries must be helped to avoid going into free fall because of the crisis.

Next year should also be the year of a settlement in Cyprus, Rehn told Reuters.

"Next year will be an important litmus test of whether Turkey is serious about its EU accession perspective," Rehn said in the interview.

"After one or two years of domestic difficulties, we would expect Turkey now to put up a new gear and seriously start to pursue the reforms again," he said.

Turkey began accession negotiations in 2005 but has made slow progress. Analysts say political distractions at home and a lack of appetite for further enlargement among EU states have pushed the EU agenda to the back burner in Turkey.

Turkish society has long been divided over the role of religion in an officially secular but predominantly Muslim country.

Turkey narrowly avoided a crisis this year over a public prosecutor's attempt to have the Constitutional Court ban the ruling Islamist-rooted AK Party.

"I am aware of the dilemmas of the Turkish society in relation with the more secular and more religious lifestyles. It is essential that Turkish society find a modus vivendi," Rehn said.

"There is too much energy used on internal tensions which could be used for pursuing legal and economic reforms that are required for EU membership."

He said it was key for Turkey to reform its constitution and improve freedom of expression, and religious and linguistic rights, to be in line with EU standards. He said trade unions and business federations were blocking a trade union law essential to Turkey's EU accession process.

Rehn urged Turkey to get to business quickly. "The sooner the better, but at the latest after the March (local) elections, Turkey should totally resume the reforms again," he said.

BALKAN EU HOPEFULS

After Montenegro formally applied for EU membership, Rehn said it was likely that other Balkan countries would apply next year. But he urged them not to rush as they needed to step up reforms first.

"We have ... rather encouraged the countries to take some time to prepare their application for EU membership because indeed they need to have a convincing track record ..." he said.

Serbia is among those knocking on the EU's door, but the Netherlands has so far blocked the implementation of an interim trade agreement, the first step on the way to EU accession.

The Netherlands say Belgrade must first arrest wanted Bosnian Serb former military commander Ratko Mladic and hand him over to the International Criminal Tribunal for the former Yugoslavia (ICTY).

"In my view, Serbia is seriously cooperating with the ICTY," Rehn said in the interview. "This would be the right time to start implementing the interim agreement," he added, saying this would help, not hamper, the drive to arrest Mladic.