A Palestinian unity deal with the Islamist Hamas movement must be supported, European Commission chief Jose Manuel Barroso told an Israeli security conference on Sunday.

His remarks came just days after a Palestinian unity government, comprised of political independents but backed by Hamas, was sworn in — a move welcomed by the international community but rejected by Israel as a major stumbling block to peace.

“In the interest of a future peace deal and of a legitimate and representative government, intra-Palestinian reconciliation… should be supported,” he told delegates at the Herzliya Conference, an annual security conference.

Any Palestinian government should uphold the principle of non-violence, be committed to a two-state solution and a negotiated settlement of the conflict, which would imply accepting existing agreements as well as recognizing Israel’s right to exist, he said.

When news of the surprise reconciliation agreement between Palestinian leaders in the West Bank and Gaza emerged in late April, Israel immediately broke off US-led peace talks, saying it would never negotiate with any government backed by Hamas.

“The Palestinian unity government with backing from the Hamas terrorist organisation is a Palestinian step against peace and in favor of terrorism,” Israeli Prime Minister Benjamin Netanyahu said on Tuesday.

“No European country would be prepared to accept a terrorist organisation as part of its government,” he said.

Barroso also called on Israel and the Palestinians to find the “political courage” to take decisive steps “to bet on peace.”

“The status quo may seem politically safer in the short term but it cannot deliver any long term gains,” he said.

“Leadership is about making possible what is necessary, and peace is necessary in the region. Security for Israel and a state for the Palestinians are moral imperatives for the international community.”