European Union foreign ministers agreed today to back a Palestinian national unity government being formed by President Mahmoud Abbas with the Hamas 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 Mr 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.
Having committed 8,000 peacekeepers to Lebanon after last month's war between Israel and Lebanese Hizbullah, the EU is keen to revive Middle East peace negotiations to reduce tensions.