Gaza strikes may cool Israeli ties with Europe

By Mark John - Analysis

BRUSSELS (Reuters) - Public horror at the pounding of Gaza by Israeli forces is hindering efforts by Europe to deepen ties with Israel and could jeopardise plans for a joint summit jeopardizeearly this year, diplomats said on Tuesday.

The 27-nation European Union has issued a string of statements denouncing violence on both sides and has been involved in international efforts to secure a ceasefire.

But while the EU underlines its neutrality, diplomats say EU-Israel relations could suffer as European governments hesitate to fully implement a pact made last year to deepen ties, including staging regular summits between the two.

"If we announced a summit now, it would be a catastrophe," a senior EU diplomat said, referring to the public outcry that could be caused by a plan to bring EU and Israeli leaders together in or around April.

Aware it has much less clout in the region than the United States, the EU sees enhancing ties with Israel as a way to boost its influence in the Middle East and may in the end push ahead with deeper relations despite the prospect of public criticism.

"For us the basic reason is to have more influence on Israel -- that they take more account of what we say," said one envoy.

Large protests have taken place in European capitals against the Israeli strikes. Pro-Palestinian lobbies and the region's Muslim populations condemn what Israel says is a response to a campaign of terrorism waged against its people by Hamas.

In a newspaper interview published on Tuesday, EU Aid Commissioner Louis Michel called an 18-day Israeli offensive which has killed over 900 Gazans "totally disproportionate" and in breach of international humanitarian law.

The EU agreed last year to upgrade political and trade ties with Israel despite protests by Palestinian officials. But EU envoys noted wording in the agreement loosely linking any moves to implement the agreement with progress in peace efforts.

"It is a question of magnitude -- how far and fast you go. And at every stage, EU member states will have to decide," said the first diplomat.

Michel appeared to distance himself from the decision to upgrade ties, telling Belgium's La Libre Belgique: "One should be careful not to use instruments which could make one or either side think one is not capable of balance."

STRUCK A NERVE

The conflict has also cast a pall over plans by the Czech Republic, which holds the EU presidency for the first six months of this year, to make a meaningful contribution to the Middle East peace process.

It has had to correct initial statements perceived as too pro-Israeli and its EU mission to the region last week was eclipsed by a trip headed by French President Nicolas Sarkozy.

A Czech presidency spokesman said it was too early to say when or if the EU-Israel summit would go ahead.