Despite the fact that Hamas, the Islamist groups in Gaza is on the EU’s list of terrorist organizations, the European Union has welcomed the reconciliation accord between Fatah of Palestinian Authority President Mahmoud Abbas and Hamas.
But the EU said its ‘’priority remains peace talks’’ with Israel.
"The EU's top priority is that the current talks continue beyond April 29," said Michael Mann, spokesman for EU foreign affairs chief Catherine Ashton, referring to the deadline for a US-led effort to broker a Palestinian-Israeli peace deal.
"The EU has consistently called for intra-Palestinian reconciliation behind" Palestinian President Mahmud Abbas, the spokesman said in a statement.
Such an understanding was "an important element for the unity of a future Palestinian state and for reaching a two-state solution (with Israel)", he added.
Israeli Prime Minister Benjamin Netanyahu said that Wednesday's agreement meant Abbas was choosing "Hamas, not peace with Israel".
Hamas, which rules Gaza, opposes all peace talks with Israel.
Ashton’s spokesman said the EU was following developments closely and looking "into the details of the agreement and its implementation".
The EU "welcomes the prospect of genuine democratic elections" for president and the legislature envisaged in the accord, he added.
Both Hamas and its military wing, the "Hamas-Izz al-Din al-Qassem" are on the EU's list of terrorist organizations.
The EU reaction to the Palestinian deal came as Israel announced Thursday the suspension of peace talks with the Palestinians over this deal.
The top-level inner cabinet of Prime Minister Benjamin Netanyahu’s government “decided unanimously that it will not negotiate with a Palestinian government that incorporates Hamas, a terrorist organization that seeks the destruction of Israel,” a statement said after an emergency meeting that lasted throughout Thursday afternoon.