Israeli Prime Minister Benjamin Netanyahu has criticised EU calls to freeze a planned upgrade of ties until his government commits to the Middle East peace process, the Haaretz newspaper reported on Friday.

‘Don’t set conditions for us,’ the daily quoted him as telling visiting Prime Minister Mirek Topolanek of the Czech Republic, which currently holds the European Union’s presidency.

‘Peace is in Israel’s interest no less than it is in Europe’s interest, and there’s no need to make the upgrade in relations with Israel conditional on progress on the peace process,’ Netanyahu said.

‘We are in the process of reviewing our policy; don’t rush us,’ Haaretz quoted Netanyahu as saying during Thursday’s meeting.

The European Commission made it clear on Thursday a planned upgrade of bilateral relations would not be implemented at this stage.

‘Too much remains unclear at this current point in time. And we expect indeed a clear commitment from the new government to pursue the negotiations with the Palestinians,’ EU commissioner Benita Ferrero-Waldner told reporters in Brussels.

‘We expect a stop of all activities undermining our objective of a two-state solution,’ she added, citing the expansion of Israeli settlements in the Palestinian territories ‘which is continuing on a daily basis.’

Netanyahu has not endorsed the creation of a Palestinian state which is the cornerstone of the internationally backed Middle East peace process.

Late last year EU nations agreed to enhance ties with Israel but the idea has been a dead letter since Israel’s deadly military offensive in the Gaza Strip in December and January.