BRUSSELS (EJP)---The EU’s new head of foreign policy has condemned Israel's "occupation,"  demanded that Israel lift its "blockade" of the Gaza Strip and blasted the security barrier.

In her first major speech since taking office on 1 December, British Catherine Ashton – a former EU Commissioner in charge of Trade - said in the European Parliament in Strasbourg.: "We are deeply concerned about the daily living conditions of people in Gaza. Israel should reopen the crossings without delay."

She added: "East Jerusalem is occupied territory together with the West Bank. The EU is opposed to the destruction of homes, the eviction of Arab residents and the construction of the separation barrier."

Israeli government officials said they were surprised, dissatisfied and concerned that such a senior figure had expressed criticism before visiting Israel and learning the facts.

They said the remarks cast a pall over relations with the European Union, and that they were particularly angry that she had not welcomed the settlement construction freeze, as had the EU Foreign Ministers earlier this month.

Ashton, a British Labour politician whose official title is European Union High Representative for Foreign Affairs and Security Policy, belittled Israel's construction freeze in West Bank settlements, calling it only a "first step.”

She announced that she planned to visit the Middle East in late January or early February.

Several left-wing and liberal members of the European Parliament have called for measures to be taken against Israel, including a suspension of the EU's Association Agreement and trade penalties against products made in West Bank settlements.

The EU Swedish presidency on Friday criticised an Israeli plan to increase funding for settlements in the West Bank, saying it could be an “obstacle” to resuming peace negotiations between Israel and the Palestinians.

"This decision runs counter to the spirit of the settlement freeze," the EU presidency said in a statement.

"It also prevents the creation of an atmosphere conducive to resuming negotiations on a two-state solution," it said.

Israel said it would continue to abide by a 10-month freeze on new  building which Prime Minister Benjamin Netanyahu announced in November as part of an effort to relaunch peace talks.

Spanish Foreign Minister Miguel Angel Moratinos said in Brussels that his country, which takes over the EU presidency for six months in January, would strive for quick peace talks.

"My idea and my dream ... is to work for having in 2010 finally a Palestinian state that could live in peace and security with Israel," he said.