The European Union today welcomed Palestinian leader Mr Yasser Arafat's cabinet reshuffle and said a reformed and more democratic Palestinian Authority was in the interests of all, including Israel.
Yesterday, under heavy international pressure, Mr Arafat reduced his cabinet to 21 ministers from 31, appointing a new interior minister to head a streamlined security force made up of rival agencies.
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The Spanish Foreign Minister, Mr Josep Pique, whose country holds the EU's rotating presidency said: "I think the reforms in the Palestinian Authority are moving in the right direction. We need to emphasise that there is clear control over the security forces."
"This reform strengthens the peace process," he told reporters, speaking after talks in Luxembourg with Jordanian Foreign Minister, Mr Marwan al-Muasher.
Echoing his comments, European Commissioner for External Affairs, Mr Chris Patten said: "A transformed Palestinian Authority, which is more democratic, transparent and accountable, is in everybody's interests...of Israel's too."
He added that the EU and the rest of the international community had to be ready to help rebuild the Palestinian territories, shattered by months of fighting.
"You cannot build a new Palestinian Authority with good wishes and communiques. You need money," said Mr Patten, whose office is the main conduit of EU aid for the Palestinians.
Jordan's Mr Muasher said it was important to maintain the momentum of international diplomatic efforts to convene a peace conference for the Middle East.
"We need to define the endgame so that the two sides know what will happen at the end of the process," he added.
Mr Patten said the EU wanted the countries of the region, including Jordan, to open up their economies more to trade with their neighbours.
"Only four to six per cent of our Mediterranean partners' trade is with one another. This is terribly low," he said. The EU aims to create a free trade zone with North African and Middle Eastern countries of the Mediterranean rim by 2012.