"All Israel's governing politicians have transformed the lives of the Palestinian people into an intolerable hell with their sanctions and expulsions," he said.

Moskovitz, 75, said the acts of violence by young Palestinians and fanatics could not be justified, but he said they were often a result of hopelessness and indignation.

He called on Europe to put pressure on Israeli Prime Minister Ariel Sharon.

The 2,000-euro (2,190-dollar) award was given to the two for providing "hope on the path to conciliation and peace between Jews and Palestinians," said Aachen Peace Prize Association chairman Gerhard Diefenbach.

Espanioly, who holds an Israeli passport, was cited for her 25-year fight for the rights of Palestinian women and children living in Israel.

Also honoured for its work was a German group called "Religious for Peace", which first came together around 20 years ago to protest at the deployment here of Pershing nuclear missiles but also campaigns against social injustice.

The Aachen Peace Prize was founded in 1988. Last year's winners were German teacher Bernhard Nolz and US congresswoman Barbara Lee.

WAR.WIRE