Mr President, after President Bush's endorsement of Mr Sharon's prejudgment of final status negotiations – ruling himself out as an even-handed peacebroker – it is easy to be discouraged about the prospects for the coexistence of a secure Israel and a viable Palestinian state, but that is the only real solution via the roadmap. It may well be that Israel keeping some key West Bank settlements and Palestinians accepting that the return of refugees will be to a Palestinian state – with which I personally agree – would indeed be part of an eventual negotiated settlement. The Quartet, with EU leadership, must disprove, however, Mr Sharon's claim that his plan constitutes a critical blow to Palestinian hopes of statehood. I am absolutely committed to the existence of Israel as a Jewish homeland and state – though one in which Arab Israelis have full, equal rights – and Israel's right to live in peace and security within recognised boundaries. My dismay at the occupation is not only about the misery of ordinary Palestinians but also how the role of colonial occupier is damaging Israel's integrity and its commitment to the rule of law. I condemn all terrorism against Israel and I do not see suicide bombers as purely the product of desperation among Palestinians – real though that desperation is. There is also exploitation of young people and a despicable culture of martyrdom in a perversion of Islam. The wall or fence might be capable of justification if it were on the Green Line – but it is not. The Bush-Sharon policy of military defeat will not ensure Israel's security. Hamas is a dangerous and uncompromising organisation dedicated to Israel's destruction, but the recent illegal assassinations of its leaders simply create more bitterness and recruits for terrorism. I am deeply worried about the rising incidence of anti-Semitism in Europe and take a strong interest in combating it, as well as other kinds of racial and religious prejudice. The delay by the EU Monitoring Centre in producing timely work on the threat to Europe's Jewish communities naturally fed suspicions about bias. We need renewed vigour in exposing and rooting out anti-Semitism and in establishing the dividing line between legitimate criticism of the policies of the Israeli Government and the demonisation of Jews. I understand the shock that Israelis must have felt at the poll last year that said that 59% of Europeans considered Israel a threat to world peace. I believe that many respondents read that question as being about the conflict between Israel and Palestinians, but it was deeply unhelpful to pose it in that way. However, the result was a wake-up call. We need a more intense EU-Israel dialogue. That is why I personally oppose any calls in the European Parliament to boycott Israel, and calls for cutting academic links are completely counterproductive. I have equally resisted moves to eliminate EU funding for the Palestinian Authority. I welcome the fact that it is Palestinians themselves calling for a clean-up of corruption, but Israel needs a negotiating partner and the sub-Saharan poverty level of Palestinians would be even greater without EU support. Finally, it is unworthy of Israel and its tradition of justice to persecute Mordechai Vanunu in a vindictive manner after his release. He has served his sentence and he should now be free.

Political group: ELDR