Sigurdardottir's Social Democrats have been in favour of EUtalks but their coalition partners, the Left-Greens, have beenmuch more cautious about joining the bloc. Support for joiningthe EU and ultimately adopting the euro has risen sharply sinceIceland's economic meltdown last October. Bonds Global Markets. By Patrick Worsnip UNITED NATIONS, May 6 (Reuters) - Israel's government is considering a U.N request for compensation for damage to U.N. facilities in the Gaza strip during Israel's war against Hamas in January, President Shimon Peres said on Wednesday.

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"It's under consideration," Peres told reporters after meeting U.N Secretary-General Ban Ki-moon. "About the compensation, the government has now appointed a group which studies how to handle it, and I think the results will come very soon." A report by a U.N. inquiry board, a summary of which became public on Tuesday, put the cost of damage to U.N. property in Gaza during the conflict at over $11 million, almost all of it caused by Israeli forces. As Israeli officials had done earlier, Peres rejected as one-sided accusations in the report that Israel had shown gross negligence and recklessness in its Gaza actions. "We don't accept one word of what the board writes," he said.

Peres said the four-person panel had overstepped its mandate to look into damage to U.N. facilities and "decided they are going to investigate the whole situation in Gaza... We think it's outrageous, we shall never accept it." Israel has said it attacked Gaza to stamp out rocket launches by Palestinian Hamas militants into Israel, and that the damage to U.N. premises was caused unintentionally when Israeli troops responded to Palestinian fire The U.N. report said, however, that Israel had falsely asserted that the fire had come from within U.N.

facilities and that the Jewish state should acknowledge that. Peres did not respond directly when asked if Israel would do so, although he said his country saw no need to apologize for its attack on Gaza. "There were accusations (against Israel) that were untrue too," the veteran Israeli president said "That's what we want to investigate We don't want to cover anything. If there were mistakes, we should correct them." IRANIAN SPEECH The main damage to U.N property in Gaza came on Jan. 15 when Israeli shells, some containing the incendiary substance white phosphorus, hit the compound of the U.N. Relief and Works Agency, badly damaging a warehouse and training center Several U.N.-run schools were hit in other strikes.