Palestinians welcome EU warning to Netanyahu

The Palestinian Authority on Saturday welcomed the European Union's call for Israel's prime minister-designate to accept the principle of the creation of a Palestinian state.

"Linking the development of the European Union's relations with Israel to a two-state solution is an encouraging position for the advancement of peace," PA spokesman Nabil Abu Rudeina told AFP.

The 25-nation E.U. warned Israel's incoming new government which will be led by Netanyahu of unspecified "consequences" if it did not accept the principle of a Palestinian state.

"Relations would become very difficult indeed," said Czech Foreign Minister Karel Schwarzenberg, whose country holds the rotating EU presidency.

"At one of our next ministerial meetings we would have to discuss what consequences the EU would draw from that," he told reporters on the sidelines of a meeting with his EU counterparts in the Czech Republic.

Netanyahu, a hawkish member of Israel's right-wing Likud, plans to present his new government to parliament next week, following the Labour party's decision to join his coalition.

The United States has warned that peace efforts will not be any easier under Netanyahu, who opposes the creation of a Palestinian state.

Linking the development of the European Union's relations with Israel to a two-state solution is an encouraging position for the advancement of peace

Nabil Abu Rudeina, Palestinian Authority spokesman