European Union foreign ministers restated on Monday their commitment to the Middle East peace process, while appearing resigned to the United States' failure to convince Israel to stop settlement building in occupied Palestinian territories, dpa reported. Israel's decision not to renew a temporary freeze on construction in September brought the latest round of peace talks with the Palestinian Authority (PA) to a halt. "The EU notes with regret that Israel has not extended the moratorium," a statement read after regular monthly talks in Brussels between ministers. "It is an acknowledgment of the failure of direct talks," Italian deputy foreign minister Alfredo Mantica commented. British Foreign Secretary William Hague declared himself "disappointed," but added that "now, whatever the situation, we have to try to make sure that there is a way forward." "We know perfectly that Israel will continue with the settlements," his Spanish counterpart Trinidad Jimenez acknowledged. Argentina and Brazil reacted to the stalemate by recognising Palestine as a separate state, but the EU is unlikely to follow in their footsteps, at least for the moment. "We must avoid everything that could endanger the success of the peace process. This means unilateral steps as well," German Foreign Minister Guido Westerwelle said. Swedish Foreign Minister Carl Bildt agreed the move was premature. "We would be happy to (recognize a Palestinian state), but the conditions have to be there and the conditions aren't there as yet ... I think that the recognition that is really important is of course the recognition of Israel, and we are aiming for that to happen," he said. The EU expressed its readiness to move on recognition "when appropriate," acknowledging a World Bank report stating that, if current institution-building efforts by Palestinian Premier Salam Fayyad continue, that moment could come "at any point in the near future." "Nobody has mentioned dates or said it should be done before or after something. It is something that remains on the background," Mantica said in reference to the recognition. In a further nod to Palestinian concerns, ministers reiterated that Jerusalem should be the capital of both Palestinian and Israeli states, and called on Israel to further loosen its embargo on Gaza by letting in construction materials. The blockade has been enacted in 2006 and tightened in 2007 in response to militants abducting an Israeli soldier, Gilad Shalit. Ministers repeated appeals for him to be released "without delay."
