Brussels:EU external relations commissioner Benita Ferrero-Waldner pledged to review the union's suspension of direct aid to the Palestinian unity government yesterday.
Speaking after EU foreign ministers held talks with the Arab League, Ms Ferrero-Waldner said she was encouraged by the discussions and progress made in Palestine.
"I think it is important that we see positively what has been mentioned and we will have to see in the future. We will have the next council and hopefully the next council can take decisions on that," Ms Waldner told reporters in Brussels.
EU foreign ministers discussed a proposal to channel aid via a single treasury account controlled by the Palestinian finance minister, Salam Fayyad, who is not a member of Hamas. This cash could then be channelled to Palestinian ministries that are not controlled by Hamas ministers, an organisation the EU and US refuse to deal with.
EU member states came under renewed pressure from Arab states yesterday, which said the suspension of direct aid was "really unfair" and contributing to a grave humanitarian crisis in the Palestinian Territories.
"This is a government of national unity. The platform is a platform of negotiations and trying to reach peace and it is now time to stop the restrictions that have been taken for no reason," said Arab League secretary general Amr Mussa at the meeting with EU foreign ministers.
The EU cut off direct aid when Hamas refused to recognise Israel, renounce violence or accept interim peace deals.
Ms Fererro-Waldner pledged EU support to the Arab League peace initiative, while Irish officials intervened in the debate noting that the peace process in Northern Ireland could be an example to follow.
Meanwhile, EU foreign ministers also took a controversial decision to ease sanctions imposed on Uzbekistan for crushing a revolt in the town of Andijan in 2005.
The decision to remove four names from a list of 12 top Uzbek officials banned from entering the EU was taken despite objections from several states which believe the oil-rich state has not yet properly addressed human rights violations.
Germany, the current holder of the six-month rotating EU presidency, had pushed hard to ease the sanctions as part of its drive to launch an EU-Central Asia strategy. The sanctions were imposed after troops opened fire on a crowd of mostly peaceful protesters in Andijan two years ago, killing at least 700 people.