VIENNA -- Austria expects additional steps in overcoming a political stalemate involving the Palestinians after a reconciliation agreement was reached between Fatah and the Islamic Hamas movements.

Foreign Minister Michael Spindelegger said Wednesday he hoped to see new ways to end the stalemate so as to establish a transitional government and hold free elections.

"We welcome the fundamental commitment of both sides to return to work in the interest of the entire Palestinian people and with the aim of establishing a democratic law-based state in the Palestinian territories," he said.

He stressed that that was only a first step in the right direction, and that the new leadership must continue successful reform policies and that negotiations with Israel toward a peaceful and lasting Middle East solution should be rapidly resumed.

Spindelegger also suggested to invite Palestinian National Authority President Mahmoud Abbas to the next EU foreign ministers meeting in Brussels.

Leaders of the two Palestinian factions on Tuesday signed in Cairo a Egypt-drafted reconciliation agreement during a meeting with a senior Egyptian security intelligence delegation.