European Affairs

As my hon. Friend knows, it is certainly the position of the UK Government that settlement activity needs to be frozen, including natural growth, which is, of course, a commitment of the road map. In respect of engagement with the United States, I spoke yesterday to Secretary Clinton and former Senator Mitchell, and I think that the US role will be absolutely critical. However, I would also say that it is not just a matter of applying "pressure"; I think that the European support for Palestinian institutions is going to be important, and I also believe that there are responsibilities on the Arab states to think through how they will achieve the goals of the Arab peace initiative and how they will operationalise the very important vision set out in that. The EU can play a role in that regard, too. The third issue I want to touch on concerns the first ever EU-Pakistan summit, which will take place at UK instigation just before the European Council on Wednesday. Given the range of interests Europe has at stake, the UK has argued long and hard for more strategic engagement with Pakistan. There is a wide range of issues for discussion at the summit, including the following. First, there are the counter-insurgency operations in North-West Frontier Province and the consequent humanitarian situation now afflicting some 2.7 million or 2.8 million refugees, or IDPs. The EU has rightly pledged to make available a sizeable contribution to assist the displaced population, but it will also have a role to play in rehabilitation and reconstruction. Secondly, in respect of governance and democracy, the EU can and should help with institution building both at the centre and in the provinces by providing finance, advice and expertise. Thirdly, on economic development, the EU is Pakistan's most important trading partner, so it is right that we should do more to improve access to EU markets. To this end, the summit is looking to agree a step change in the EU's engagement with Pakistan on trade, leading to a free trade agreement in due course.