Javier Solana, the European Union's foreign policy chief, has resisted calls for the EU to isolate the Palestinian President Yasser Arafat during a meeting with the Israeli Foreign Minister Silvan Shalom in Jerusalem. Shalom said the EU should follow the lead of the United States in rejecting dialogue with Arafat. He also called for the bloc to take a tougher line against "terror". "The time has come for Europe to recognise once and for all that Hamas is a terrorist organisation and must be treated as such," Shalom said. The EU has blacklisted the armed wing of Hamas but not the political wing. Solana said that despite a recent upsurge in violence, both sides should commit themselves to the "road map" peace plan. "The road map is the only document, the only alternative we have on the table and I would like very much to make an appeal to everybody that has responsibility to keep on moving the road map in the right direction forward, to do the utmost," Solana said. Arafat is currently locked in a power struggle with Mahmoud Abbas, the prime minister he appointed reluctantly earlier this year. On Thursday the Palestinian parliament will debate proposals that aim to define more clearly the responsibilities of the prime minister and president. **PHOTO CAPTION*** EU foreign policy chief Javier Solana (R) speaks to the press, as Israeli foreign minister Silvan Shalom looks on, during their press conference at a Tel Aviv hotel. (AFP/Yoav Lemmer)