Mr President, if nothing else, last week’s visit of the parliamentary delegation to the Palestinian territories illustrated that over the past four months, the situation has taken a bad turn for the worse. During my most recent visit at the start of the Intifada, it was evident that economically, there was a future for a separate Palestinian state. If you now walk around in Bethlehem or Jerusalem, it is painful to see that the economy has completely bottomed out. This is as a result of the tourist trade drying up completely and of the policy of closures by the Israeli government, which is preventing tens of thousands of workers from commuting into work. The political situation too has deteriorated dramatically due to the no-compromise rhetoric. This is now prevalent on the Palestinian side, and given the liquidations carried out by the Israeli government, this is a very understandable reaction. The European Union was right to condemn this policy, all be it a little belatedly. In short, my impression after last week’s visit, if I am being honest, is a very negative one. In all truthfulness, I am not holding out too much hope for the future either. In that sense, I share the view of Mr Sakellariou. My expectation is that the peace process will grind to a halt as a result of the wait-and-see attitude of the Bush administration and the fact that I think that the Sharon government – which I am certain will soon be a reality – will initially keep reasonably calm in the face of international pressure. But this standstill could be a blessing in disguise if the European Union were to use that time to its own advantage. This is possible and would be possible if it were to use its role as key donor to the Palestinians and as Israel’s key trading partner in an effective manner. With regard to the Palestinians, I believe that the European Union should act as follows. It should use its role as key donor to urge the Palestinians to end the widespread corruption, which many people protest against and are indignant about at regional level. Additionally, the Palestinian authorities should respect human rights to a much higher degree, not only in terms of executions but also, for example, in its treatment of prisoners. It would be unacceptable, with regard to respecting human rights, for the European Union to finance police training if in practice nothing were to change. Finally, I would like to comment on the Palestinians. Local elections are required in order to enhance the legitimacy of the Palestinian Authority. As for Israel, I believe that the European Union should leave Israel in no doubt that if, after the forthcoming elections, repression increases, if the settlement policy does not change and if there is no movement in their willingness to reach an agreement, then we cannot proceed in a business-as-usual manner. We cannot continue to deal with a partner who refuses to do what we have been asking for for years. We should have the nerve to draw the necessary conclusions, to refer to the rules in the Association Agreement and dare to take measures. If the European Union uses this economic position to its advantage, it could well play a political role in future, a political role which does justice to the demands of the region and the interests of the Union itself. (Applause)

Political group: Verts-ALE