Olmert: Peace deal has never been closer

PARIS (AP) -- Israeli Prime Minister Ehud Olmert says that Israel and the Palestinians have never been closer to a peace deal than now.

Palestinian leader Mahmoud Abbas, standing with Olmert at the French presidential palace Sunday, added that both sides were "serious and want to achieve peace."

Meanwhile, Olmert also said Sunday that Israel hoped to have direct contacts with Syria soon. The rival neighbors have been holding indirect talks mediated by Turkey.

Olmert and Abbas held talks Sunday with French President Nicolas Sarkozy ahead of a sweeping summit launching the Union for the Mediterranean, bringing together leaders of some 40 nations in Europe, the Middle East and Africa.

"We have never been as close to a possible [peace] agreement as today," Olmert told reporters.

Repeated rounds of Israeli-Palestinian peace talks since a peace conference in Annapolis, Md., last year have produced little movement.

But the atmosphere was friendly when Olmert and Abbas posed on the steps of the Elysee Palace with Sarkozy in the center, arms linked.

Olmert's domestic troubles, meanwhile, have clouded peace efforts. Law enforcement officials announced the widening of the corruption investigation against Olmert. The ongoing investigations threaten his political survival and will make it more difficult at least in the short term to make major steps toward peace.

Palestinian negotiator Saeed Erekat said Sunday that those troubles were not affecting current discussions. He said Israeli and Palestinian officials would review the status of negotiations on the sidelines of the Paris summit, discussing Israel settlement activity, the Gaza border and Palestinian prisoner releases.

Syria's President Bashar Assad said Sunday that talks with Israel could move toward direct contact but suggested that would not happen until there was a new U.S. president in place.

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