Micheál Martin (Cork South Central, Fianna Fail)
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The General Affairs and External Relations Council on 15 June welcomed as an initial step the statement by Prime Minister Netanyahu which recognised the goal of a peace which would involve the establishment of a Palestinian state. It is important that Mr. Netanyahu, as Likud leader and Prime Minister, has finally stated this, and to a conservative audience in Israel.

I was disappointed, however, with the heavily qualified nature of Prime Minister Netanyahu's willingness to contemplate a future Palestinian state, which essentially accorded priority to Israel's security concerns above all other considerations.

The aim of the peace process, as the EU has consistently made clear, must be a comprehensive settlement based on two states coexisting in peace, providing for the security, dignity and aspirations of both the Israeli and Palestinian peoples. The security of both Israelis and Palestinians is a legitimate concern which must be addressed in the negotiations. However, Israeli demands on 'final status issues' cannot be accepted as preconditions to the process. President Obama has made it clear that this is also his view.

We will therefore be watching closely what the parties actually do, as well as what their statements contain.

The continued expansion of Israeli settlements is a major problem which I have focussed on in discussions at EU level and with Israeli and other leaders in the region. This relentless process is creating obstacles to peace which may make it very difficult for any Israeli Government to reach a peace agreement with its neighbours and serves to weaken the standing of moderate Palestinian leaders. Moreover, the daily and cumulative injustices and humiliations which the whole settlement process involves for the Palestinian population continually increase the risk of another large scale descent into violence.

It was therefore disappointing, if not unexpected, that Mr. Netanyahu's speech rejected the demand of both the EU and the United States for an immediate freeze on settlement construction. It is true that he pledged that no new settlements would be constructed, but in terms that were general enough to allow almost any interpretation. Again, this is a critical area where we will be watching what actually happens on the ground. Continued evictions of Palestinians and destruction of their homes will be a clear rejection of the demands of the international community.

In relation to EU – Israel relations, I would refer the Deputy to my reply to Question 329 of 23 June, in which I dealt with this issue in more detail. What had been envisaged was a deepening of political relations and cooperation on practical matters, rather than trade relations. In the event, and in line with the argument I have been consistently making with our EU partners, the Council has decided not to proceed with the so-called 'upgrade' of political relations at this time, and practical cooperation will continue to be governed by the existing agreement.