EU agrees ready to boost Israel ties, postpones Cuba decision

"The European Union is determined to develop a closer partnership with Israel," EU foreign ministers agreed at talks in Luxembourg, according to a text obtained by Reuters.    Â

The process should take place in a context "which notably includes the resolution of the Israeli-Palestinian conflict through the implementation of the two-state solution," it said.

The EU was due to meet later on Monday with Foreign Minister Tzipi Livni of Israel, which has sought a significant upgrading of relations opposed by Arab states and the Palestinian Authority especially because of Israel's settlement building.

Diplomats said EU member states were ready to enhance ties with Israel in social policy, give the hi-tech Israeli economy better access to the European market and cooperate more closely on regulatory issues.

That is more modest than proposals made last year by Israel which included regular summits of EU and Israeli leaders, and meetings with EU sectoral ministers on top of the current annual session at foreign minister level.

Israel has a seven-year-old "association agreement" with the 27-member bloc setting out a schedule of political meetings, regulating trade ties and areas of cooperation from internal security to education.

SANCTIONS ON CUBA

EU foreign ministers postponed a decision on Monday on whether to lift sanctions on Cuba, leaving the controversial issue for a summit of the 27-nation bloc on Thursday, EU diplomats said. The measures were imposed after a crackdown on dissent in 2003 and include a freeze on visits by high-level officials. They were formally suspended in 2005 but abolition would be seen as EU encouragement for reforms by Cuban President Raul Castro, who took over after the Feb. 24 retirement of his brother Fidel.

"The decision on Cuba was moved to the summit," an EU diplomat said. "They have enough difficult topics to discuss today," another diplomat said, referring to talks on the bloc's reform Lisbon treaty, rejected by Irish voters last week.

Lifting sanctions would put the 27-member bloc at odds with Washington over Cuba policy. President George W. Bush told an EU-U.S. summit in Slovenia last week the communist island needed to free political prisoners before relations could go forward.

Former colonial power Spain has long led calls for an end to the EU sanctions, which unlike the 1962 U.S. embargo do not prevent trade and investment. But it has met resistance from the bloc's ex-communist members, notably the Czech Republic.