The European Union has urged Israel's newly-forming coalition government to lift its blockade of the Palestinian territories.
It said measures to re-establish normal economic life would help a return to cooperation, whereas continuing dislocation would only increase Palestinian desperation.
The concerns were conveyed to Israeli Prime Minister-elect Ariel Sharon's special envoy to Europe in talks with European Commission President Romano Prodi, Commissioner for External Relations, Chris Patten as well as EU foreign and security affairs chief Javier Solana.
The EU issued a statement saying it wanted to work with Israel on the basis of a clear commitment to peace.
The hope was expressed that the parties would proceed on the basis of the progress already achieved, it said.
The European Commissioners also expressed concern about the impact of Israel's withholding of customs receipts and tax revenues due to the Palestinians, it said.
Mr Solana issued a statement saying he had made clear that a collective effort by all parties is required to break the current cycle of violence.
"This is essential for the re-establishment of a sense of normality for both Israelis and Palestinians and a return to cooperation", he said.