France's President Nicolas Sarkozy (L) shakes hands with Israel's Prime Minister Ehud Olmert during their meeting in Jerusalem June 22, 2008.  (Xinhua/Reuters Photo) Photo Gallery>>>

    JERUSALEM, June 23 (Xinhua) -- French President Nicolas Sarkozy vowed during a special session of the Knesset (parliament) on Monday that his country would always stand by Israel against those who call for its destruction.

    "A nuclear Iran is unacceptable. Anyone trying to destroy Israel will find France blocking the way," Sarkozy said in his address to the Israeli lawmakers, the first by a French president since Francois Mitterrand in 1982.

    "Israel must know it is not alone in the battle against Iran's nuclear ambitions," he added.

    Israeli Prime Minister Ehud Olmert applauded Sarkozy for his "determination to root out anti-Semitism in France," saying that ties between France and Israel had seen a "revival under your leadership."

    Regarding the Israel-Palestinian conflict, Sarkozy stressed that recognition of Jerusalem as the capital of both Israel and a Palestinian state was a condition for peace.

    The Palestinians, he said, "have the right to a viable state of their own," noting that such a state would "ensure Israel's security."

    He also called on Israel to end its settlement activity in East Jerusalem and the West Bank, saying there would be "no peace without a solution to the problem of the Palestinian refugees," a sticking point in negotiations between the two sides.

    "There will be no peace if the Palestinians do not fight terrorism," Sarkozy said. "Each side has to make an effort. Peace is not possible if the Palestinians cannot move about freely."

    Sarkozy and his wife Carla Bruni were given a festive reception in their honor at the Knesset. Earlier Monday, the French presidential couple visited the Yad Vashem Holocaust Museum in Jerusalem.

    Sarkozy arrived at Ben-Gurion International Airport Sunday afternoon for a three-day visit in the region. The trip is Sarkozy's first to Israel and the Palestinian territories since he became president in May 2007.

    During a meeting with Israeli President Shimon Peres on Sunday, Sarkozy criticized the expansion of Jewish settlements in the West Bank and the construction in East Jerusalem.

    "You have made some bad decisions, like the expansion of settlements and east Jerusalem, where the construction is not good for Israel," said Sarkozy at Peres' residence in Jerusalem.

    "The best and only guarantee for the state of Israel is an independent, democratic Palestinian state at its side," he added.

    Peres responded "there are no disagreements between us on the issue of the Palestinian state and the settlements. However, we evacuated many settlements in the Gaza Strip and the unfortunate result is Hamas firing at civilians, firing missiles at them."

    The French president is scheduled to meet with Israeli opposition leader Benjamin Netanyahu and will also talk with Palestinian National Authority (PNA) President Mahmoud Abbas in the West Bank city of Bethlehem.

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