This week saw the announcements of two steps in the wake of the Israeli commandoes' raid on the Gaza Freedom Flotilla a few weeks ago.

Israel itself announced the setting up of a board of inquiry, with some international participation. Many international players did not wish such an inquiry to be Israel-led but Israel has US support on this matter.

The second step was an agreement brokered by Tony Blair, the Middle East envoy working on behalf of the UN, US, Russia and the EU. Following 12 days of talks, Mr Blair secured Israel's agreement to change some of the most insidious aspects of its blockade of Gaza.

Israel had hitherto justified its blockade, with its grave consequences for Palestinian civilians, by saying that it was the only way it could curtail the activities of Hamas extremists. However, the blockade had a serious impact on every aspect of Palestinian civilian life.

Unemployment rose dramatically. Any humanitarian aid that could theoretically be put to alternative use was banned, which led to delays in the deliveries of most items, from paediatric hygiene kits to school textbooks. The UN statistics show that about 70 per cent of Gazans live on less than $1 per day.

The flotilla had, of course, been sailing to Gaza to break this blockade. It was boarded by Israeli troops and several activists were killed. Israel claimed the killing was in self-defence. The international outcry that followed has showed that the raid was a mistake, even from an Israeli perspective. The incident almost shattered Israel's relations with a former ally, Turkey. But there have also been other consequences, for Israel, the US and Europe.

The first concerns President Barack Obama's reputation in the Middle East. Arabs did not have exaggerated hopes for his Administration's chances of enabling peace in the region. During the Presidential campaign itself, then Senator Obama had clearly equivocated about his policy in an attempt to alienate neither Jewish nor Arab-American voters.

However, his election was greeted positively. I doubt whether any positive feeling will be left in the region, at least regarding the Arab-Israeli conflict, following the consistent support the US gave Israel during the UN discussions of the raid.

It was US pressure that led to the dilution of some of the key UN declarations. The US has supported the idea of an Israel-led inquiry into the raid rather than an independent one as urged by others.

Whatever the justification for the US position, the consequence is that the Obama Administration will be regarded as no different from previous US Administrations in its approach to the Palestinian question.

Such an approach may well strengthen the hand of the Palestinian extremists. They will be free to argue, among Palestinians, that there is not much use in adopting a more moderate approach given that real US support will not be forthcoming.

A related form of extremism will be strengthened, in my view, by the raid: anti-Semitism. A hatred of Jews can be found in various sectors in the Middle East. It is a hatred that goes beyond political anger at Israel's treatment of Palestinians. It is a hatred that is expressed by a wish to destroy Israel, to kill Jews indiscriminately and to minimise the tragedy of the Holocaust.

It is important to realise that such attitudes are resisted by many Arabs. However, the anti-Semitic tendencies will be strengthened by an event which has made it easy to depict Israel as a bully who believes that might is right.

Finally, there is the matter of the agreement that Mr Blair has brokered. This agreement redresses some of the most inequitable and insidious aspects of the Israeli blockade of Gaza. However, many people, not least Palestinians themselves, will have noticed that the agreement redresses conditions that have long pre-dated the flotilla raid.

So why was Israel only pressured to change its stance now? It sounds, in the first place, as though Israel was making tactical concessions to avoid greater rebuke from the international community. Up till now, its blockade of Gaza was always defended, in its details, by Israel as absolutely necessary for its security. Now it turns out that the security needs could have been met with less hardship for Palestinian civilians.

The agreement, positive in itself, bruises the reputation of the EU, despite its role in the criticism of Israel's behaviour. The agreement brokered now illustrates what could have been achieved earlier, when the blockade was in place and, therefore, Europe's sin of omission.

It also suggests that it is only significant international pressure, powered by civilian outrage, that can bring Israel to make concessions to the Palestinians.

I hope that is not the case. For the sake of the many Israelis who realise that the status quo is unsustainable for Israel, that it is a tragic situation for its citizens as much as for the Palestinians.

Dr Attard Montalto is a Labour member of the European Parliament.