Alarmed EU scrambles to play down rift with America

Europe was forced to backtrack hurriedly to avoid a public rift with the United States over the Middle East yesterday.

After months of European support for Yasser Arafat, the American call for an end to his leadership left EU officials acutely embarrassed.

Despite US misgivings, the EU has consistently stood behind Mr Arafat as the legitimate representative of the Palestinian people. Because of the Bush speech, European officials yesterday shifted their ground slightly by putting new emphasis on the need for elections to the Palestinian Authority. They insisted the Palestinian people had to choose their leader and the outcome of the vote should not be discussed by foreign powers.

Javier Solana, the EU high representative on foreign affairs, said it was ready to help organise elections that would give the Palestinians "an opportunity to choose their leaders". The point was echoed by politicians including the French Foreign Minister, Dominique Galouzeau de Villepin, who said it was "only the Palestinians themselves who can choose their leaders".

His German counterpart, Joschka Fischer, welcomed "the newly expressed perspective that the US would fully support a Palestinian state if there were rapid Palestinian reform efforts". But he added that "only the Palestinian people can decide on their legitimate leadership".

Diplomats described the Bush speech as a sign of stronger US involvement in the Middle East, and focused on areas of greater common ground in the declaration ­ studiously avoiding any comment on Mr Arafat's future.

EU officials believe one possibility is that Mr Arafat might be given a more ceremonial post, allowing for a new negotiating partner for Israel to emerge. But a source added: "What we do not do is to try to predetermine the outcome of elections".

Trying to put his best gloss on the Bush speech, Mr Solana said the EU and America "share the same fundamental objective" and called for "an end to terrorism and an end to occupation".

His statement referred pointedly to the need for an early international peace conference ­ something about which America has been ambivalent.

The question of Mr Arafat's part in the peace process has been the cause of frequent conflict. When Israel suggested that the Palestinian president might be excluded from a peace conference, European officials insisted otherwise.