Senior European Union officials held talks with the Palestinian President Mr Yasser Arafat today as part of a visit to the Middle East during which they will also meet Israeli Prime Minister Mr Ariel Sharon and his new government.
European Commissioner for External Affairs Mr Chris Patten and Swedish Foreign Minister Ms Anna Lindh met Mr Arafat at his offices in the Gaza Strip. They are scheduled to see Mr Sharon, Foreign Minister Mr Shimon Peres and President Moshe Katsav tomorrow.
Officials say the international donors' conference may take place in Stockholm around mid-March but that no date has been set. Sweden holds the EU's six-month rotating presidency.
Palestinians want the European Union to play an active role in putting an end to the conflict, which erupted into a Palestinian uprising against Israeli rule almost six months ago.
The EU has urged Israel to lift its economic blockade of Palestinian territories, which Israel says is imposed to block the entry into Israel of guerrillas planning to carry out bomb attacks.
The EU says the measure is driving more Palestinians into the arms of extremists opposed to any compromise with the Jewish state. Palestinians call the Israeli moves collective punishment.
Last month the EU said it was ready to convert planned loans worth 60 million euros into direct grants to the Palestinian budget. But the Palestinians, in return, must agree on an austerity budget with the International Monetary Fund.
The Palestinian uprising against Israeli occupation erupted last September and at least 344 Palestinians, 65 Israelis and 13 Israeli Arabs have been killed since it started.