European Union states agreed on Monday they were ready to upgrade ties with Israel while urging the Jewish state to make progress on Middle East peace, officials said. "The European Union is determined to develop a closer partnership with Israel," EU foreign ministers agreed at talks in Luxembourg, according to a text obtained by Reuters. The process should take place in a context "which notably includes the resolution of the Israeli-Palestinian conflict through the implementation of the two-state solution," it said. The EU was due to meet later on Monday with Foreign Minister Tzipi Livni of Israel.