David Levy making friends in Brussels

Hopes Rise for Mid-East Peace

The Palestinian leader, Yasser Arafat, and the Israeli Foreign Minister, David Levy, are having talks at the EU foreign ministers' meeting in Brussels - but not with each other.

The EU's hope is that it can bring them together. One of the leading Palestinian negotiators, Saeb Erakat, says that is now looking more likely. And the Israeli spokesman, Moshe Fogel, told BBC World television that his government would welcome a meeting.

Yasser Arafat at an earlier meeting, with US envoy Dennis Ross (left)

He said, however, that the Palestinians would have to accept that "terror and violence is not going to bring us to our knees". Asked about possible concessions on the Israelis' part, Mr Fogel said: "Concessions is a two-way street".

Even if the meeting does happen, it will be hard for the European foreign ministers to extract much from it, because the positions of the two sides are so entrenched.

The Israelis are demanding the resignation of the head of the Palestinian police, alleging that he has been organising a campaign of political violence against them.

The Palestinians are still demanding an end to the construction of Jewish settlements on occupied territory. There's been no worthwhile dialogue between the two sides since March, when Israel started building Har Homa, the latest Jewish settlement on occupied land at Jebel Abu Gnaim in Jerusalem.

Even so, the European Union believes that it may have a chance where the Americans have so far failed. The EU is the biggest donor to the Palestinians, who trust it more than they trust the Clinton administration.

The Americans are also working on new proposals. They have had separate meetings in Washington with Israeli and Palestinian negotiators.

On both sides of the Atlantic, the going is slow and difficult. In the Middle East, there is a deep sense of crisis. The Israeli commander on the West Bank says the area is "a powder keg".