Middle East peace deal possible this year - Blair

By Sam Cage

DAVOS, Switzerland (Reuters) - Middle East peace envoy Tony Blair said he believes both Israelis and Palestinians want peace and a deal can be brokered by the end of this year.

"I think it's doable this year if people want to do it," Blair, the former British prime minister, told Reuters.

Blair is peace envoy to the Quartet of Middle East mediators, which includes the United States, Russia, the European Union and the United Nations.

"You could get a peace deal. It's not impossible to work out what the basic principles of the agreement are, and both sides want to reach an agreement," Blair said at the annual meeting of the World Economic Forum.

"But what is necessary in order to get the politicians to the point where they can do the deal is to have sufficient confidence on the ground from people that the security situation for the Israelis can be improved and the occupation can be lifted for the Palestinians," he said.

He said it was essential to address the security concerns of the Israelis and that occupation of the Palestinian territories can be gradually lifted.

"If you could however get that different situation going, and you could get the basic principles of a political deal in place, this thing could move incredibly quickly."

Israeli Foreign Minister Tzipi Livni said on Thursday she would not be held to a U.S. timetable for peace and Palestinians needed to show they had a credible government to rule any independent state.