The European Union on Sunday welcomed the successful outcome of the first Israeli-Palestinian summit in 18 months, saying it offered hope for a renewed dialogue between the two sides.

"The [E]) supports any moves that can contribute to reinvigorating the peace process," Benita Ferrero-Waldner, the bloc's foreign affairs commissioner, said in a statement.

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"I am also encouraged by the indications that Israel may be ready to unblock part of Palestinian customs and tax revenues for humanitarian purposes," the statement said. "This would be a first step towards a long-standing objective of the EU and vital in meeting the needs of the Palestinian people."

Ferrero-Waldner said the European Union stood ready to facilitate delivery of assistance to the Palestinians.

UAE to transfer $30 million to Palestinian Authority
The United Arab Emirates will transfer $30 million to the Palestinian Authority to ease the plight of Palestinians facing a Western boycott since Hamas took power this year, the official WAM news agency said Sunday.

"The President of the United Arab Emirates Sheikh Khalifa bin Zayed al-Nahayan has ordered the transfer of $30 million to the Palestinian Authority as support from the United Arab Emirates to the brotherly Palestinian people and to help reduce their suffering," WAM said

It gave no more details.

Hamas has refused to meet the conditions for lifting an economic boycott imposed by the international community in the wake of its win in the Palestinian parliamentary elections in January, namely recognizing Israel, renouncing violence and accepting previously signed interim peace agreements.

Prime Minister Ehud Olmert, in a Saturday meeting with PA Chairman Mahmoud Abbas, agreed to the transfer of $100 million in frozen taxes collected by Israel on behalf of the PA.

The funds will be transferred directly to Abbas, and not to the Hamas-led government.