Berlin - Germany welcomed Wednesday a proposal by Egypt's President Hosny Mubarak for an immediate ceasefire between Israel and the Palestinians in the Gaza Strip, to be followed by meetings to end the blockade of Gaza.

Foreign Minister Frank-Walter Steinmeier said, "One must now seek an exit from the violence as soon as possible on this basis."

He also welcomed Israel's announcement that it would allow a humanitarian corridor for aid to enter the Gaza Strip.

Steinmeier called for the corridor to opened quickly "to get urgently needed supplies of relief to the suffering people in Gaza."

The minister said in Berlin that Germany was granting 2 million euros (2.8 million dollars) to the International Committee of the Red Cross (ICRC) for relief in Gaza.

He said the Foreign Ministry had budgeted aid to the Palestinians for the whole year of 11 million euros. (dpa)