The Government has decided not to oppose a Dáil motion calling for recognition of Palestinian statehood, in a move seen as paving the way for formal state recognition.

Sinn Féin tabled a private member’s motion in the Dáil calling on the Government to join other EU states in formally recognising the Palestinian state.

At the Cabinet meeting on Tuesday, Ministers decided not to oppose the motion but it does not mean recognition of Palestine will follow.

When asked if not opposing the Sinn Féin motion is preparing the ground for a change of Government policy, a spokesman would only say “Europe is looking at this anew”.

A formal change of policy would have to come from the Government itself, the spokesman said, and then be voted on in the Dáil.

A Sinn Féin spokesman welcomed the fact that its motion would not face Government opposition, a development he described as “significant”.

Fund of €10 million

Speaking on the debate in the Dáil last night, Séan Sherlock, the Minister of State at the Department of Foreign Affairs, highlighted the €10 million provided to the Palestinian territories by the Government.

He also said the Government will “continue to reflect both nationally and along with our EU colleagues, on the role which the specific step of recognition of Palestine could play”.

“We have made clear that the Government has an open mind about any action, including early recognition of Palestine, which can positively contribute to the goal which we all share of an end to the conflict and a secure future for both Palestinians and Israelis,” Mr Sherlock said.

“This Government will continue to do all we can to ensure that a future Palestinian state will be one built on strong institutions capable of meeting the needs of the people of that state.”

The Palestinian Authority must be able to meet the needs of those living in the West Bank and Gaza, he said, adding public services are “essential not only for the immediate welfare of the Palestinian people but . . . also critical to the creation of a Palestinian state”.

The Sinn Féin motion noted that, as of earlier this week “135 countries have formally recognised the state of Palestine, including eight EU member states – the Czech Republic, Hungary, Poland, Bulgaria, Romania, Malta, Cyprus and Sweden”.

It called on the Government to “officially recognise the state of Palestine, on the basis of the 1967 borders with east Jerusalem as the capital, as established in UN resolutions, as a further positive contribution to securing a negotiated two-state solution to the Israeli-Palestinian conflict”.