MADRID -- The European Union on Saturday said it "deplores" the UN decision to call off a Fact-Finding Mission into Israel's assault on the Jenin Refugee Camp and that without it, the long shadow cast by events there would remain, Reuters reported.

Palestinians accused Israel of a massacre in Jenin during fierce fighting there last month. Israel denies the allegations and says it did what it could to avoid civilian casualties.

"The EU deplores the fact that...the (UN) team is unable to go to the region and begin its mission," Spain's UN Ambassador, Innocence Arias, told the Security Council on behalf Of the ECU. Spain currently holds the EU presidency.

"Israel says it has nothing to hide, but in the words of the UN Secretary-General, the long shadow cast by the recent events in the Jenin Refugee Camp will remain if there is no investigation," a statement quoted him as saying.

Israel at first supported an international probe to clarify the events in Jenin but later objected to a UN mission, which UN Secretary-General Kofi Annan cancelled on Thursday.

Spain also said Arias told the Security Council that the 15-nation European Union "reserves the right to demand compensation (for Palestinians) in the appropriate forum."

The EU said Israel caused "unprecedented damage" to the Palestinian infrastructure and private property that had "no relevance to security" and "can in no way be justified by Israel's legitimate fight against terrorism."

The EU called for Israel to give humanitarian organizations free access to the Palestinian territories and comply with UN Resolutions demanding a withdrawal from Palestinian territories, the statement said.