BRUSSELS -- - Israel and the Palestinians took a modest step recently toward cooperating on energy projects and sharing gas and electricity supplies in talks hosted by the European Union.

Israeli Energy Minister Joseph Paritzky and his Palestinian counterpart Azzam Shawwa signed an agreement to open talks in August and September, when expert groups will discuss sharing electricity and gas supplies and managing demand. The deal came two days after visiting Israeli Foreign Minister Silvan Shalom told EU foreign ministers the Jewish state, long hostile to any European political role in the Middle East, wanted the bloc to play a greater part in peacemaking. The agreement also envisaged the creation of a joint body for energy cooperation, and in the medium term an energy infrastructure development programme which would seek support from international lenders such as the European Investment Bank. The three sides said they hoped to identify projects of common interest in time for an industrial conference in Brussels in November, which Egypt, Turkey, Jordan, Lebanon and Syria will also attend.

The deal came two days after visiting Israeli Foreign Minister Silvan Shalom told EU foreign ministers the Jewish state, long hostile to any European political role in the Middle East, wanted the bloc to play a greater part in peacemaking.

The agreement also envisaged the creation of a joint body for energy cooperation, and in the medium term an energy infrastructure development programme which would seek support from international lenders such as the European Investment Bank.

The three sides said they hoped to identify projects of common interest in time for an industrial conference in Brussels in November, which Egypt, Turkey, Jordan, Lebanon and Syria will also attend.