European Union leaders urged Israel today to pull all its forces out of the Palestinian territories immediately and to respect international law, including Palestinians' human rights.
In a declaration issued at the end of a two-day summit in Barcelona, the leaders also reaffirmed their support for an independent Palestinian state alongside an Israel secure within internationally recognized borders.
"Israel, notwithstanding its right to fight terrorism, must immediately withdraw its military forces from areas placed under the control of the Palestinian Authority, stop extra-judicial executions, lift the closures and restrictions, freeze settlements and respect international law," they said.
"Both parties must respect international human rights standards," they added.
The declaration also called on the Palestinians to crack down on terrorism. But it added that Israel must not undermine the Palestinian security forces needed to curb militant groups.
Unlike earlier drafts seen at the summit, the final text did not include a call for Israel to respect the fourth Geneva convention, which protects the rights of refugees.
Israeli security forces have stormed into Palestinian refugee camps hunting for guerrillas they suspect have plotted attacks on Israeli civilian and military targets.
Germany, which traditionally opposes strong criticism of Israel, insisted that the line be dropped, EU diplomats said.
The EU leaders expressed strong support for US envoy Mr Anthony Zinni's mission to the Middle East.
The EU leaders called in their declaration for "the creation of a democratic, viable and independent state of Palestine, bringing to an end the occupation of 1967, and the right of Israel to live within safe and secure borders."
They also backed a Saudi plan which envisages Arab recognition of the state of Israel in return for Israeli withdrawal from the occupied territories.
Mr Arafat, still confined to the Palestinian territories by Israel, should be allowed to travel to Beirut this month for an Arab summit which is due to discuss the Saudi plan, they said.
The EU reiterated its support for a "third party monitoring mechanism" of observers to help police a future cease-fire and pledged "substantial" aid to rebuild the Palestinian territories once peace takes hold.