The European Union (EU) on Monday called on Israel and the Palestinian side to take "urgent steps" to resume the peace process, reaffirming the regional bloc' s support for a two-state solution to the decades-old conflict.

"We demand that both parties take urgent steps to resume peace negotiations, respecting previous agreements," said Czech Foreign Minister Karel Schwarzenberg, whose country holds the rotating EU presidency, at a press conference during the monthly EU foreign ministers' meeting in Luxembourg.

Pointing out that both Israel and the Palestinians are reviewing their options over the peace process at the current stage, Schwarzenberg said the EU will not "prejudge their positions," but expects the two sides to stick "unequivocally" to the two-state solution, with a democratic, independent and viable Palestinian side with east Jerusalem as its capital living in peace side by side with Israel.

The Israel-Palestinian peace track has been put on hold since Israel launched attacks on Hamas targets in the Gaza Strip at the end of last year, causing high civilian casualties and a huge humanitarian disaster.

The prospects for resuming the peace process have been dealt a heavy blow after the formation of the new Israeli government led by hardline Likud Prime Minister Benjamin Netanyanhu.

On the Palestinian side, split among the factions has made it a difficult task of forming a national unity government.

While Netanyanhu has promised to continue the peace process, the Palestinians remain skeptical about how his government will deal with them.

According to Schwarzenberg, the EU foreign ministers reaffirmed on Monday their commitment to help achieve a comprehensive peace agreement in the Mideast.

But he warned that the situation in Gaza and the settlement activities in the West Bank remain two of the major obstacles to further progress in the peace talks.

Earlier Monday, Egyptian Foreign Minister Aboul Gheit said that the new Israeli government has so far not taken any positive steps in relation to its neighbours.

"I do not believe that the Israeli government has taken any positive steps up till this moment -- nothing whatsoever," Gheit told reporters after a meeting with EU officials in Luxembourg.

At the same press conference, EU External Relations Commissioner Benita Ferrero-Waldner said a meeting of the Middle East Quartet -- EU, Russia, United Nations and the United States -- will be called hopefully in the near future.