CAIRO, Feb 3 - German Chancellor Angela Merkel on Saturday called for exerting international efforts to solve the Palestinian issue, which she said was the core of the Middle East conflict.

Addressing a joint news conference with Egyptian President Hosni Mubarak here, the German Chancellor said Israeli-Palestinian confidence was required to solve the Palestinian problem. She expressed the readiness of the European Union to improve the economic conditions of the Palestinians providing that Israel's right to exist was endorsed.

She stressed necessity of collective international efforts to solve problems of the region, noting that the EU launched profound efforts in the support of the causes of the Middle East by participating in the international quartet committee which wrapped works in Washington yesterday.

She said the quartet meeting was a positive indication, praising Egypt's efforts to urge the partners support a palestinian national unity government and push forward the negotiation process with the Israeli side.

Merkel underlined significance of the economic development in the Palestinian areas as a vital step, noting that terms set by the quartet committee for both the Palestinians and Israelis should be respected to be able to assist the Palestinians and reach a solution. The Egyptian efforts are essential and it is important that the EU and the quartet backed up these efforts, she went on.

On his part, Mubarak said it was essential to clear the Palestinian-Palestinian rift before negotiations with the Israelis started.

He said Israel wanted to solve the problem of the Israeli soldier held captive by the Palestinians who want their detainees released from Israeli jails. "We are preoccupied by establishing a Palestinian national unity government," he added.

On Africa, Merkel said an EU peacekeeping mission was sent to Darfur region in cooperation with the African Union, appealing for collective efforts to solve problems in the region.

Mubarak for his part said there was no country that can work on its own. There are several problems that need to be addressed collectively.

On the Iranian nuclear file, Mubarak said it was an issue at the Security Council's agenda. The United States and the Western countries do not want nuclear powers in the area more than what is currently present. He expressed hope for a peaceful solution for the issue.

Mubarak stressed Egypt's call for a Middle East free of weapons of mass destruction.

On German-Egyptian economic cooperation, Merkel said is was possible to talk about available potentials to present to Egypt, pointing out that the delegation accompanying her during the trip included businessmen that held talks with their Egyptian counterparts.

She said the EU would work on increasing Egyptian exports to Germany and the European countries.

On education cooperation, Merkel said the German university in Egyppt is part of a process for such cooperation.

She said the EU supports the Euro-Medditerranean dialogue and backs up the good neighbourliness policy, noting that a meeting would be held in Cairo next march in this respect.

She said points of view were identical with Egypt on necessity of preserving the national conciliation and stability in Somalia, Iraq and Lebanon and reaching a political settlement for the Iranian nuclear issue.

Source: KUNA