Includes Euro Summit The Palestinian leader, Yasser Arafat, has expressed optimism that his people will achieve statehood very soon, following the latest peace deal agreed with Israel.

Mr Arafat was speaking in Austria after briefing European Union leaderson the Washington talks.

Mr Arafat said he hoped Palestinian independence would come with the agreement of the Israelis -- and added that he now considered the Israeli Prime Minister, Binjamin Netanyahu, as his new partner in the peace process.

The peace deal has been broadly welcomed around the world, but there has been an angry reaction from Jewish settlers in the West Bank.

The accord has also been condemned by Palestinian opposition groups based in Syria as well as HAMAS and Islamic Jihad.