The European Commission President, Mr Romano Prodi, has reacted sharply to an Israeli claim that the Palestinian Authority is using EU funds to buy weapons. Mr Prodi said the accusation, made by the Israeli Prime Minister, Mr Sharon, on Sunday was entirely without substance.
"This is simply untrue," Mr Prodi said. "The EU gives money to prevent the collapse of the Palestinian Authority. The money is used for health, schools and basic elements of administration. We have spent no money on the military side of it."
The Commission President was speaking in Damascus on the last day of a three-day EU visit to the Middle East. Mr Prodi and the Belgian Prime Minister, Mr Guy Verhofstadt, met Syria's President, Mr Bashar al-Assad.
Mr Verhofstadt said the talks had been fruitful and that the EU delegation encouraged Syria to help find an agreement between Israel and the Palestinian Authority. The delegation was clearly disappointed by Mr Sharon's unbending approach during a lunch-time meeting in Jerusalem on Sunday. Sources close to Mr Verhofstadt said Mr Sharon adopted a more conciliatory tone during an impromptu meeting between the two prime ministers on Sunday evening.
EU officials expressed satisfaction last night at yesterday's speech on Middle East policy by the US Secretary of State, Mr Colin Powell. They said it showed that US and EU policy on the region had moved closer together.
"There is now a clear understanding between the US and the EU about the origins of this conflict and what is necessary for the solution of this conflict. I think for the first time we see an international community with the same point of view on this issue and that's very important," Mr Verhofstadt said.
The EU delegation flew from Damascus to Beirut for talks with Lebanon's Prime Minister, Mr Rafiq Hariri, and President Emile Lahoud.
