European Union foreign ministers will wrestle on Monday with the shock Hamas election victory and how to continue support for the Palestinians if they are led by a group on the bloc's terror blacklist.

In their first meeting since the long-ruling Fatah faction was ousted in last week's general elections, the ministers will sketch out their stance toward Hamas, which has carried out most of the attacks on Israel.

"The tenor of what will arise from these talks between the 25 on Monday will set the tone," a European diplomat said.

That tone is likely to be further refined at a meeting later in London between the Mideast Quartet of the EU, the United States, the United Nations and Russia.

The EU believes it has time while waiting for a Palestinian government to be formed, which Hamas has been asked to do, and the diplomat said Palestinian Authority president Mahmud Abbas would remain its central point of contact.

He said the Union faces a "black scenario if, for example, Hamas continues to call for the destruction of Israel" or a "rosy scenario, if Hamas continues to evolve and renounces violence."

"With either of these scenarios, the EU's decision is simple. But the question is, what will we do if it is somewhere between the two."

The EU indicated where policy might head when it pledged on Thursday to help strengthen the Palestinian economy but warned that it expects the new government to commit to peace with Israel.

"The European Union stands ready to continue to support Palestinian economic development and democratic state building," the 25 members said in a statement.

"At the same time, the European Union expects the newly elected PLC (Palestinian Legislative Council) to support the formation of a government committed to ending violence, a negotiated solution to the Israeli-Palestinian conflict, the rule of law, reform, and sound fiscal management," it said.

Hamas has shown no sign yet that it will, but the group's supremo, Khaled Meshall, said on Saturday that it would work with the international community.

"We will carry out reforms as soon as possible. We will coordinate with Arab countries, Muslim countries, European countries and all the international community," said Meshaal, one of Israel's most wanted men.

The EU is the world's biggest donor of aid to the Palestinians.

Since 2003, member states and the European Commission have given about 500 million euros (613 million dollars) each year to the Palestinian people.

The commission pledged some 280 million euros in 2005 -- around 70 million euros was destined for the Palestinian Authority through the World Bank, but only half was paid because the PA did not respect some democratic "benchmarks".

But in its efforts to help rebuild the impoverished Palestinian territories and encourage democracy and the rule of law, the EU has been heavily criticised by Israel for talking to Hamas members.

"It is up to the European Union to speak out clearly and unequivocally and clarify that there will not be any European understanding shown towards a process which would mean the establishment of a government of terror," Israeli Foreign Minister Tzippi Livni said on Thursday.

During their talks, the ministers will also discuss developments with Iran's nuclear programme, amid fears it may be used to make atomic arms, ahead of a meeting of the International Atomic Energy Agency (IAEA) on Thursday.

They are expected to express concern at the Islamic republic's decision to remove seals at several nuclear installations and its decision to resume enrichment activities.

They will also call on the authorities in Belarus to ensure its election in March is free and fair, and criticise the deterioration of democracy, human rights and political freedoms in the former Soviet state.