Deputy Hamas chief Moussa Abu Marzouk says "the decision is a correction of a historical mistake the European Union had made."

Reuters/Brussels

The Palestinian Islamist group Hamas should be removed from the European Union's terrorist list, an EU court ruled on Wednesday, saying the decision to include it was based on media reports not considered analysis.

However, in its ruling, the bloc's second highest tribunal said member states could maintain their freeze on Hamas's assets for three months to give time for further review or for an appeal to be launched.

The EU's foreign policy arm said the bloc continued to view Hamas as a terrorist group. "This was a legal ruling of the court based on procedural grounds. We will look into this and decide on appropriate remedial action," spokeswoman Maja Kocijanic said.

Israel, which has clashed repeatedly with Europe in recent years over Palestinian statehood ambitions, demanded Hamas remain blacklisted and said the ruling showed "staggering hypocrisy" toward a Jewish state founded after the Holocaust.

"It seems that too many in Europe, on whose soil six million Jews were slaughtered, have learned nothing. But we in Israel, we've learned," Prime Minister Benjamin Netanyahu said. He branded Hamas "a murderous terrorist organisation".

Hamas holds sway in the Gaza Strip and its founding charter calls for the destruction of Israel. It has regularly battled Israel, most recently in a 50-day war this summer.

HAMAS BUOYED

Hamas says it is a legitimate resistance movement and contested the European Union's decision in 2001 to include it on the terrorist list. It welcomed Wednesday's verdict.

"The decision is a correction of a historical mistake the European Union had made," Deputy Hamas chief Moussa Abu Marzouk said. "Hamas is a resistance movement and it has a natural right according to all international laws and standards to resist the occupation."

The EU court did not ponder the merits of whether Hamas should be classified as a terror group, but reviewed the original decision-making process. This, it said, did not include the considered opinion of competent authorities, but rather relied on media and Internet reports.

It said if an appeal was brought before the EU's top court, the European Court of Justice, the freeze of Hamas funds should continue until the legal process was complete.

EU parliament backs Palestinian statehood in principle

The European Parliament adopted a resolution on Wednesday supporting Palestinian statehood in principle, in a compromise motion that did not follow some European national legislatures in backing immediate recognition of a Palestinian state.

Following a deal among the main parties, the motion carried by 498 votes to 88 stated: "(The European Parliament) supports in principle recognition of Palestinian statehood and the two-state solution, and believes these should go hand in hand with the development of peace talks, which should be advanced."

Lawmakers on the left had originally wanted to urge the EU's 28 member states to recognise Palestine now without conditions.

This follows Sweden's decision in October to do so and non-binding votes since then by parliaments in Britain, France and Ireland in favour of recognition that demonstrated growing European impatience with Israel and the stalled peace process.

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