Plans for closer ties between the European Union and Israel must be halted until there is a "comprehensive" ceasefire in the Gaza offensive, aid agencies demanded today. (WITH VIDEO)

Plans for closer ties between the European Union and Israel must be halted until there is a "comprehensive" ceasefire in the Gaza offensive, aid agencies demanded today.

Humanitarian, human rights and development organisations issued the joint call following the death yesterday of about 40 people during an Israeli attack on a United Nations-run school in Gaza.

The European Commission has condemned the attack as "completely unacceptable", but Israel has dismissed a call from EU foreign ministers for a ceasefire.

And a high-level EU delegation which visited the region for talks on Monday was also rebuffed.

Now the coalition of agencies, including Oxfam, World Vision, Muslim Aid and Christian Aid, say Brussels should use ongoing talks on closer EU-Israel relations as a lever.

An EU-Israel Association Agreement is being stepped up to "gradually integrate Israel into European policies and programmes", said the Commission.

Under the deal, Israel is eligible for almost £13 million in EU "financial cooperation" in the next seven years.

But the aid agencies want EU foreign ministers meeting in Prague tomorrow to suspend the process.

Daleep Mukarji, director of Christian Aid UK and Ireland, said: "Israel has shunned diplomatic efforts by the EU, and the EU's credibility is now at stake.

"It is inconceivable that we should extend further benefits of European partnership to a government that violates international humanitarian law and refuses negotiation in favour of continued violence. It is time for robust EU action to bring about an immediate ceasefire and end the violence on all sides."

The agencies say the humanitarian aid situation in the Gaza Strip was already "dire" because of an 18-month blockade, but has now been pushed to "crisis point".

Souhayr Belhassen, president of the International Federation for Human Rights, said: "This is not the time to be awarding benefits to a party to the conflict.

"The civilian casualties and destruction of homes, schools and basic infrastructure in Gaza are shocking and increasing every day. The EU cannot proceed with upgrading our relations with Israel while such violations are talking place."

Jeremy Hobbs, executive director of Oxfam International, added: "The EU agrees that an immediate ceasefire and an opening of Gaza crossings is our only hope for alleviating the desperate situation in Gaza and providing security for people on both sides.

"The EU must now apply real pressure to convince Israeli and Hamas leaders to accept this and redouble its efforts to achieve sustainable peace in the region."

The agencies want the EU to suspend the EU-Israel "upgrade" process until a "full, complete and permanent" ceasefire has been agreed by both sides, and until Israel provides "unimpeded" humanitarian access.

They say it should be made clear that Israel's partnership with the EU should be linked to respect for human rights and international law.

Shadow foreign secretary William Hague, speaking about the bombardment of the al-Fakhura school, said: "It is a grave error and grave tragedy to hit schools. We don't know the ins and outs of this, of course.

"The Israelis say that it was being used as cover in some way, the UN people themselves say that is not the case.

"It does great damage to the Israeli cause when there is such tragic loss of civilian life and I think the Israelis know that, I think they know they have to do their utmost to avoid it.

"This is a disaster for them when things like that happen, as well as a disaster for the families of all the people involved," he told Sky News.

But Mr Hague suggested it was "not appropriate" to suggest Israel was acting disproportionately in terms of its overall offensive in Gaza: "In this case the start of the conflict was the launching of hundreds of Hamas rockets at Israel with the intention of killing civilians.

"That, of course, is something we have to remember and underlines why we need a ceasefire on both sides for these tragic deaths to stop."