The European Parliament,

–  having regard to its previous resolutions on the situation in the Middle East and the elections to the Palestinian Legislative Council (PLC),

–  having regard to the Quartet's 'Roadmap for Peace' of 30 April 2003,

–  having regard to the results of the 25 January 2006 elections to the Palestine Legislative Council (PLC),

–  having regard to the EU Foreign Ministers' decision of 10 April 2006 to suspend direct payments and technical assistance to the new Palestinian Government,

–  having regard to Rule 103(2) of its Rules of Procedure,

1.  Reiterates that the promotion of peace, prosperity and progress in the Middle East and a solution to the conflict will only be possible through the negotiation of a firm and final peace agreement as set out in the Roadmap; recalls that the Roadmap was launched by the Quartet (the UN, the EU, the US and Russia) as the result of a long peace-building process which dates back to the 1991 Madrid conference;

2.  Reaffirms the importance of the principles of partnership and negotiations leading to a two-state solution as stated in the Roadmap, and therefore calls on both parties to reach a peaceful solution for the creation of two democratic states, Israel and Palestine, living side by side in peace and security;

3.  Reaffirms its commitment to granting effective humanitarian aid to the Palestinian people; nevertheless underlines that the aid must not directly or indirectly support any violent groups or any policy affirming violence which aims at destroying the state of Israel;

4.  Expresses its concern over the fact that the government of the Palestinian Authority has so far failed to commit itself to the principles of non-violence, recognition of Israel and acceptance of previous agreements and obligations, including the Roadmap, or to take serious action against terrorism and violence;

5.  Supports the decision by the Council to suspend EU financial assistance to the Palestinian Authority until its Government commits itself to respecting the above mentioned principles;

6.  Stresses that delivery of humanitarian assistance directed to help meet the basic human needs of the Palestinian people is essential, especially assistance in the health and education sectors, and emphasises that the economic, social and humanitarian crisis in the Palestinian territories is getting worse;

7.  Evaluates positively the first official meeting of Israel's Foreign Minister, Mrs Livni, and President Abbas and the statement that Palestinian tax and customs revenues will be transferred from Israel to Palestine and will be used exclusively for the Palestinian health sector and delivered directly to hospitals;

8.  Urges the Commission to set up a financial instrument and certain financing mechanisms as soon as possible in order to ensure that this temporary instrument operates with full transparency and accountability and provides direct delivery of assistance to the Palestinian people;

9.  Instructs its President to forward this resolution to the European Council, the Commission, the Governments and Parliaments of the Member States, the Government of Israel, the Palestinian Authority, the UN Secretary-General and the Governments of the Quartet.