"It is very important for the region and the world that we reach a solution with two states. I think that the Geneva Initiative shows that it is possible to achieve this goal," Moeller said.

He was speaking at a joint press conference with the architects of the peace plan, Palestinian information minister Yasser Abed Rabbo and Israeli Labour party parliamentarian Avraham Burg, who are currently on a northern European tour to drum up support.

Moeller said the plan was complementary to the so-called roadmap for Middle East peace -- drafted by the United States, United Nations, European Union and Russia -- which envisages the creation of a Palestinian state by 2005.

The Geneva Initiative goes further than the roadmap, making proposals for resolving some of the thorniest problems in the Palestinian-Israeli conflict, such as the status of Jerusalem and Palestinian refugees.

The European Commission said Friday it could help fund implementation of the initiative, whose authors will be in Brussels next week.

The plan, launched in December in Switzerland, has been rejected by the government of Israeli Prime Minister Ariel Sharon.

The Palestinian parliament has refused to adopt a proposal condemning the plan but has voted against its official endorsement.

WAR.WIRE