European leaders issued their strongest support yet for Palestinian statehood, saying they looked forward to an early fulfilment of the Palestinians' "unqualified right" to independence.
The statement drew praise from Palestinian leaders, but was denounced by the Israeli Prime Minister, Mr Benjamin Netanyahu. He said Europe was trying to impose a solution which endangered Israel.
The declaration was intended to compensate the Palestinian leader, Mr Yasser Arafat, for his apparent willingness to postpone a unilateral declaration of statehood in the West Bank and Gaza Strip beyond May 4th, the end of the five-year period of Palestinian autonomy laid down under the 1993 Oslo peace accords.
He has met EU and US officials recently and reportedly sought assurances that if he held off on declaring independence in May, a Palestinian state would eventually win international recognition.
May 4th is the deadline for negotiations between Israel and the Palestinians on the final status of the West Bank and Gaza. Mr Arafat has asked Europe and the US to set a new deadline for completing the talks.
Although yesterday's statement did not mention a date, it said the EU was ready to "consider recognition of a Palestinian state in due course". The EU "is convinced the creation of a democratic, viable and peaceful sovereign Palestinian state on the basis of existing agreements and through negotiations would be the best guarantee of Israeli security".
In Israel Mr Netanyahu said: "Such a state would be able to raise a large army, use it without limitations, forge alliances with regimes that aim to destroy Israel, and serve as a base of increased terrorism against Israel, and in that way threaten its existence." He has warned that he would annexe parts of the West Bank and Gaza in response to a unilateral declaration of statehood by Mr Arafat.