Europe signalled a tougher line towards Israel yesterday, with a warning that it should withdraw immediately from the West Bank or face a review of its special relationship with the EU.
Mr Romano Prodi, President of the European Commission, called for early talks with Mr Ariel Sharon's government to discuss the EU-Israel association agreement, which provides for preferential trade and political dialogue. "The Israeli government must immediately pull out its forces from recently occupied territories," he said, warning of a "major humanitarian crisis" in the West Bank.
Mr Prodi's remarks followed weekend statements by several EU governments suggesting that sanctions could be imposed if Israel continued to defy US and European demands for a pull-back.
Last week Mr Sharon rebuffed an EU attempt to broker a ceasefire by banning its foreign policy chief, Mr Javier Solana, and Mr Josep Pique, the Spanish Foreign Minister, current holder of the EU presidency, from meeting Mr Yasser Arafat, who is under siege by Israeli troops at his headquarters in Ramallah.
Mr Prodi reiterated the EU view that the Palestinian leader remained the only valid negotiating partner for an Israeli government which has dismissed him as an enemy. He also demanded that Mr Arafat denounce terrorism.
"Terrorism puts the legitimate cause of the Palestinian people into jeopardy and you risk losing the support and protection of the international community." Mr Pique said EU foreign ministers would discuss sanctions against Israel if it went on rejecting calls for a ceasefire, when they meet next week. European markets account for 40 per cent of Israel's trade. - (Guardian News Service)