President Mahmoud Abbas said Wednesday that the Ramallah-based government had yet to rule out the 2-state solution to the Palestinian struggle for self-determination.

"We fully support the 2-state solution, a Palestinian state on the 1967 borders living side by side with Israel in peace, security and stability," Abbas said after meeting with Finland's President Tarja Halonen.

"We insist that this is the best solution for the future of both Palestinians and Israelis; there is no other option," Abbas said countering growing calls that the PLO give up talks with Israel.

Concerning Israel's recent demand that it be recognized as a Jewish state, Abbas said, "Our stance is that we recognize them, but if the Israelis want to call themselves any other name [than the State of Israel], they should consult the United Nations and the international community -- this issue is none of our business."

He called on the Israeli government to end settlement construction, saying the PLO would return to direct talks. "Stop this so we can negotiate," he said. "Let's focus on hope rather than failure."