EU offers encouragement to Palestinian unity govt

BRUSSELS, Mar 9 (Reuters) EU leaders today said they were ready to work with a Palestinian unity government if it agreed to conditions laid down by international powers.

The European Union suspended direct aid to the Palestinian government last year after Islamist Hamas, which it considers a terrorist group, beat the moderate Fatah in an election.

The heads of state and government, meeting in Brussels, welcomed an agreement reached between the two in Mecca last month to form a unity government, the make-up of which is still being haggled over by the rival factions.

''The EU stands ready to work with a legitimate Palestinian government that adopts a platform reflecting the Quartet principles,'' it said.

The Quartet of West Asia mediators -- the United States, Russia, the European Union and the United Nations -- has called for a future government to renounce violence, accept Israel's right to exist, and recognise past peace accords.

The Mecca deal contains a vague promise to ''respect'' Israeli-Palestinian pacts but does does not commit the incoming government to abide by those pacts, nor to it recognising Israel and renouncing violence.

An EU diplomat noted the European Union had already given tentative backing to the Mecca deal and an endorsement by EU leaders was a further positive signal.

Swedish Foreign Minister Carl Bildt said how the EU responded to a new Palestinian government depended on its ''personalities, policies and performance''.

He argued the Mecca pact, by respecting past agreements, ''to some extent'' implicity recognised Israel's right to exist.

''By respecting previous agreements...you have an implicit recognition of the right of Israel to exist,'' he said.

Abbas wants international donors to lift the diplomatic and financial boycott on the government once a unity cabinet is formed. Israel has urged the European Union not to compromise on the Quartet demands.

Abbas and Israeli Prime Minister Ehud Olmert are expected to meet on Sunday to discuss the unity government.

EU leaders also endorsed a plan for EU foreign policy chief Javier Solana to travel to West Asia, including Syria, as part of international diplomatic efforts.

REUTERS DKA HS1822