The European Council adopted a resolution on the situation in the Middle East. They reaffirmed their belief that a peaceful settlement should be based on Security Council resolutions 242 and 338 and on the following: a) The inadmissibility of the acquisition of territory by force b) The need for Israel to end the occupation of territories it has held since 1967, c) Respect for the sovereignty, territorial integrity and independence of every state and region and their right to live peacefully within secure and recognized borders d) The recognition that, for the establishment of a just and lasting peace, the legitimate rights of the Palestinians must be taken into account. The Nine also adopted a statement on economic growth, inflation and employment, emphasizing the need for industrial countries to cooperate in order to achieve sustained expansion of global economic activity compatible with reducing inflation and thus contribute to reducing unemployment.