<h1>European government to recognise Palestinian state at UN if hostages returned and militants removed; bans settlement goods, bars leaders</h1> A European government announced plans to recognise a Palestinian state at the UN, conditioned on the return of all hostages and removal of the ruling militant group from power, and signalled measures including banning goods from occupied-area settlements and declaring militant leaders, violent settlers and two far-right cabinet members persona non grata. The government urged the EU to suspend ties, including a trade agreement, to increase pressure. The move, part of a broader shift by several Western states toward recognition, drew a sharp rebuke from a far-right minister in the other government directly involved in the conflict.