JERUSALEM (EJP)---European Union foreign policy chief Catherine Ashton is to meet Monday with the family of Gilad Shalit, the Israeli soldier held captive by Hamas in Gaza since June 2006.

Speaking to reporters after meeting in Jerusalem Sunday evening with Israeli Foreign Minister Avigdor Lieberman, Ashton said: "I share with the family of Gilad Shalit my deepest sympathy."

"I cannot conceive of the terrible pain that Aviva and Noam Shalit have had to endure everyday of the four years since Gilad Shalit has been abducted," she added.

"Gilad must be released without delay and the Red Cross representatives must now be allowed to visit him," she also said.

Earlier on Sunday, Ashton visited the southern Israeli town of Sderot after leaving the Gaza Strip through the Erez crossing as part of her three-day Middle East tour, the second in four months.

The EU official stressed the importance of her visiting Sderot and witnessing the damages caused by rockets that have endangered the town's residents.

The rockets and residents affected by them, show how crucial efforts are in building an agreement, Ashton said.

On Saturday, after meeting Palestinian Prime Minister, Ashton said the European Union has been calling for an urgent and fundamental change of policy regarding the closure of Gaza.

"I have welcomed the new policy of the Israeli government as an important step forward," she said. "As I have always said, Israel’s new policy should improve the lives of the ordinary people of Gaza while addressing the legitimate security concerns of Israel. The position of the EU is clear, the blockade is unacceptable, unsustainable and counterproductive. It is not in the interests of any of those concerned."

"If we can be of value and the parties agree, the EU is ready to support a smooth handling of goods at the crossings."

Israel looking for serious partners to improve Gaza's economy

Israeli Foreign Minister Avigdor Lieberman said Sunday the new Israeli policy of increasing the amount of goods that can enter the Gaza Strip "is not enough". "Israel is looking for serious partners", to improve the economic situation in Gaza, he added.

"Israel is working on a plan to build a power station, desalination plants and infrastructure for water purification in the Gaza Strip," he said.

"These projects can resolve a real problem of drinking water and electricity and improve the situation," the minister added.

Lieberman told Ashton he hoped members of the European Union would back the Israeli plan.

Catherine Ashton, who was also due to meet Israeli Prime Minister Benjamin Netanyahu, Foreign Minister Avigdor Lieberman and Defense Minister Ehud Barak, stressed the need to see "confidence building measures" and at the same time "avoid measures that undermine the peace process”.

She expressed deep concern about frecent settlement activity in East Jerusalem.