EU backs Palestinian unity government

BRUSSELS - European Union foreign ministers have agreed to back a Palestinian national unity government being formed by President Mahmoud Abbas with the Hamas Islamist movement, despite US misgivings.

But they said it was too early to decide whether to resume direct aid to the cash-strapped Palestinian Authority and they agreed in the meantime to extend a temporary aid scheme bypassing Hamas for another three months.

A statement by the 25 EU states after a meeting in Brussels welcomed Abbas's announcement of agreement to form a new unity government and expressed the hope its political platform would "reflect the Quartet principles and allow for early engagement".

The EU and the United States have boycotted the Hamas-led government formed in March as it refused to accept the demands of the Quartet of Middle East peace brokers to recognise Israel, renounce violence and accept past peace accords.

Finnish Foreign Minister Erkki Tuomioja, who chaired the talks, said Abbas had assured the EU that the new government was committed to all Palestine Liberation Organisation agreements.

"It creates a new situation and allows us to break the deadlock," he said, adding that the ministers had invited Abbas to meet them at the United Nations in New York next week.

Italian Foreign Minister Massimo D'Alema told Reuters: "It's a very important turning point for the situation."

Having committed 8,000 peacekeepers to Lebanon after last month's war between Israel and Lebanese Hizbollah guerrillas, the EU is keen to revive Middle East peace negotiations to reduce tensions.

In Gaza, Palestinian government spokesman Ghazi Hamad welcomed the EU move as "progressive and rational", saying it would contribute towards maintaining stability.

"We hope to open a new chapter between the Palestinian government and the EU and I hope that there will be no retreat under pressure from the United States administration," he said.

Not all convinced

Israeli Foreign Ministry spokesman Mark Regev said Israel noted that the foreign minister's statement called for a new Palestinian government to accept Quartet principles.

"If these crucial elements are indeed adopted by a future Palestinian government, it will open the door to re-energise political dialogue between Israelis and Palestinians and will put the peace process back on track."

Washington said on Thursday it saw no Palestinian policy change to justify lifting the embargo on contacts and aid.

"Therefore ... we would expect that the status quo as it stands should be unchanged," State Department spokesman Sean McCormack told a briefing.

Many European governments are anxious to end the stand-off, which has contributed to aggravated poverty and lawlessness in the Palestinian territories.

But diplomats said not all European governments were in a hurry, with Britain, Germany, the Netherlands and Czech Republic - all close to Washington - urging caution.

British Europe Minister Geoff Hoon said it was too early to talk of resuming direct aid: "We haven't reached that position yet. There is still some further clarification (needed) as to precisely what is the underlying agreement involving Hamas."

EU External Relations Commissioner Benita Ferrero-Waldner said the interior, finance and external relations ministers of the new government might not be Hamas members. She added that even if the new platform was "excellent" it would be some time before direct support could be resumed.

- REUTERS