LUXEMBOURG, April 23, 2007, (WAFA)- The Council of the European Union welcomed the Arab Peace Initiative as reaffirmed in the declaration of the Arab League Summit of 29 March and supports it as a major element in moving the Middle East Peace Process forward.

In a statement issued Monday following the Council meeting in Luxembourg, the EU invited the Quartet to lead an effort by the international community for successful negotiations between Israel and the Palestinians on the basis of the Road Map and to reach a comprehensive settlement of the Israeli-Arab conflict.

The Council welcomed the intention of President Mahmoud Abbas and Prime Minister Olmert to meet on a regular basis, hoping that these meetings contribute to the effective and sustainable improvement of the living conditions in the Palestinian territories..

"The EU will continue to work closely with the parties including by practical measures regarding access and movement, governance and the security sector," according to the statement.

EU also recalled its readiness to work with and to resume its direct assistance to a Palestinian government whose policy and actions reflect the Quartet principles.

"In that context, it continues to closely evaluate the policy and actions of the new national unity government. It has initiated co-operation with members of the government who accept these principles," EU added.

The Council endorsed the extension of the Temporary International Mechanism (TIM) for a further three months, reiterating its call on Israel for the immediate resumption of the transfer of withheld Palestinian tax and customs revenues, directly or through the TIM.

It called on the parties to consolidate the cease-fire in Gaza and to extend it to the West Bank, expressing at the same time deep concern with the continuation of settlement activities, and the ongoing construction of the barrier (Apartheid Wall) on Palestinian land.

H.M (23:30 P)-(20:30 GMT)