We are particularly concerned about the repeated attempts to jeopardize the upgrade of relations between the European Union and Israel.

The European Neighbourhood Policy (ENP) establishes a framework under which the EU offers its neighbours a privileged relationship that brings advantages to both sides.It is in this light that the European Commission has proposed to promote the ENP policy in order to strengthen political, trade, economic and human rights agreements between the EU and nearby countries, including Israel. The proposals include, among others, the possibility of opening EU programs and agencies to Israeli participation.

On a recent visit to Israel, External Relations European Commissioner Benita Ferrero-Waldner stressed that EU-Israel relations "have moved into a warmer era". She said the EU is interested in deepening its economic ties with Israel, developing stronger cooperation on energy and transportation issues and increasing the exchanges between business people, academics, local authorities, artists and young people.It is this constructive approach that we invite EU leaders to support. The upgrade of relations with Israel could represent a new channel for exchanging knowledge and best practices in various fields. It would implement a more constructive dialogue on a series of topics, thus opening new opportunities and challenges that could only strengthen collaboration between Europe and the Near East and further promote the implementation of the peace process.

For the above mentioned reasons, we welcome the decision of the EU to upgrade ties with Israel and call on the EU to continue on its path of dialogue and peace promotion, as it is only by inclusion and not by the exclusion of partners that true understanding can be achieved.

Furthermore, we would like to bring the following facts to your attention:

• The EU's policy towards the Mediterranean region is governed by the Euro-Mediterranean Partnership, which involves extending free trade across the Mediterranean region through a network of bilateral agreements between the EU and individual Mediterranean partners, with the aim of creating a Euro-Mediterranean Free Trade Area by 2010. In 1995 the EU and Israel signed the Euro-Mediterranean Association Agreement, which entered into force on 1 June 2000. It replaced the former 1975 EC-Israel Co-operation Agreement. EU-Israel trade is growing healthily. In the last 20 years, the share of EU-Israel trade in their commerce with the rest of the world has almost doubled. In terms of total trade, the EU is Israel's major partner.

• Israel ranks as EU's 27^th largest trading partner. Israel is one of the biggest trading partners in the Euromed area, with total trade with the EU amounting to more than €23.5 billion in 2006. In the same year, the EU ranked number 1 in Israel's imports and number 2 in its exports. Israel ranked 30th in the EU's imports and 22nd in the EU's exports (approx. 1% of total EU trade). Israel has signed free trade agreements with not only with the European Union, but also with the United States, the European Free Trade Association, Turkey, Mexico, Canada, Jordan, and Egypt, and on 18 December 2007, became the first non-Latin American country to sign a free trade agreement with Mercosur.

• Israel's indicators in terms of economy, science, law, education show the natural closeness between Israel and the EU and why the EU should reach its hands to a neighbour like Israel. Amongst the "neighbourhood" of the EU Israel is the one which is the closet to the EU in terms of all the above and of course the sole democracy and its resulting values in the Region.

• As to products originating in the Israeli settlements in the West-Bank, East Jerusalem and the Golan Heights, by Notice published on 25 January 2005 (OJ C 20 p.2), the Commission recalled that these products are not entitled to benefit from preferential tariff treatment under the EU-Israel Association Agreement. It also informed operators that for these products the EU and Israel have reached an arrangement which foresees that all proofs of origin made out in Israel will bear, as of 1.2.2005 the name of the city, village or industrial zone where production conferring originating status has taken place. This procedure works well, and no complains have been reported so far.

• Faced with unremitting rocket attacks from Gaza (4,000 rocket and mortar attacks on its civilians since the Jewish state dismantled every settlement and removed every settler from Gaza in 2005 ) the government of Israel has shown great restraint as it takes action to defend its citizens, the right and the prime obligation of any nation. Israel remains committed to talks with the Palestinian Authority (PA), despite Hamas’ deliberate targeting of Israeli civilians on a daily basis.

• Palestinian terrorists have repeatedly attacked the very border crossings and facilities intended to help the Palestinians, including the Kerem Shalom crossing, where hundreds of trucks with food and medicine enter Gaza on a monthly basis. Nevertheless, Israel continues to allow the delivery of food, medicines and energy supplies to Gaza despite repeated attacks on those helping to facilitate such humanitarian efforts. Since Hamas took over Gaza in June 2007, Israel has transferred more than 530,000 tons of humanitarian supplies to Gaza. Furthermore, Israel continues to allow patients to leave Gaza for medical treatment in the Jewish state, with more than 14,000 people having entered Israel since 2006.

• Scores of suicide bombings and daily terrorist attacks against Israeli civilians have killed more than 900 people and wounded thousands more since September 2000. Israel did not want to build a fence and has prevented itself from doing so for more than 35 years but it was forced to act and the government decided to construct a security fence near the northern part of the pre-1967 “Green Line” between Israel and the West Bank to prevent Palestinian terrorists from infiltrating into Israeli population centers. It is important to stress as repeatedly mentioned by Israeli Officials that the fence is not political, and is not a border. Since construction of the fence began, the number of attacks has declined by more than 90%. The number of Israelis murdered and wounded has decreased by more than 70% and 85%, respectively, after erection of the fence[1]. Even the Palestinian terrorists have admitted the fence is a deterrent[2]. As a matter of fact, the security fence does create some inconvenience to Palestinians, but it also saves lives. The deaths of Israelis caused by terror are permanent and irreversible whereas the hardships faced by the Palestinians are temporary and reversible.

• Arab states need to take concrete steps to support the talks by providing Abbas the political support he will need to fight terrorism, isolate Hamas and make the tough compromises necessary to reach an agreement with Israel. Arab governments must fulfil their pledges to provide financial assistance to the Palestinians. Despite record oil profits, members of the Arab League have provided the PA with only 30 percent ($215 million out of $717.1 million) of pledged budget support. Arab states can further show their commitment to ending the conflict – and demonstrate to the Israeli and international public their sincerity – by taking steps to normalize relations with Israel, ending incitement in their media and preparing their own people for peace with the Jewish state.