Israel has announced it is easing some restrictions on the impoverished Gaza Strip and West Bank as it negotiates a final peace deal with the Palestinians.
Israeli minister of international relations Yuval Steinitz revealed after a meeting at the United Nations on Wednesday that 5000 new work permits were being issued for Palestinians to work in Israel, the opening hours of the key Allenby Bridge crossing would be extended, and new imports of some building materials would be allowed into Gaza.
"We have an interest in a strong, viable, prosperous Palestinian economy," Steinitz told reporters after a meeting on the sidelines of the United Nations General Assembly.
"A better economic climate might help to create a better political climate," he added.
"And a strong Palestinian economy is good for Israel, it's good for our economy, it's good for the general atmosphere."
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He was speaking after ministers from the Middle East Ad Hoc Liaison committee met for some three hours to discuss progress in the talks so far.
US Secretary of State John Kerry said Washington was planning to step up efforts to help reach an elusive Middle East peace deal, having set an ambitious goal of sealing an agreement within nine months.
He revealed for the first time that Israeli and Palestinian negotiators have now met directly seven times since the peace talks were relaunched in late July aiming to create two states, one Israeli and one Palestinian, living side-by-side.
"All of the issues are on the table, territories, security, refugees, Jerusalem, all of the final status issues are on the table," Kerry stressed.
US special envoy Martin Indyk, a former ambassador to Israel who was appointed in July to shepherd the negotiations, has taken part in some of the seven rounds of talks so far.
"We've agreed now in the last week ... to intensify these talks and we've agreed that the American participation should be increased somewhat in order to try to facilitate them," Kerry added, without elaborating.
Palestinian Finance Minister Shukri Bishara said he was "really encouraged by some of the initiatives" announced by Israel at Wednesday's meeting.
"Opening the bridge for extended hours, is immense," he said, adding that he personally crossed through the border point every week.
"Enlarging the list of imports into Gaza is of immense help," Bishara said. "I hope we can build on these preliminary moves and multiply them. It's in our best interests to be prosperous, your (Israel's) best interests to see us prosperous."
UN chief Ban Ki-moon earlier called on all donors to step up efforts to help the slowing Palestinian economy saying "the situation is volatile and the status quo is not sustainable. In the long term it is damaging to both the Israelis and the Palestinians".
