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BERLIN , April 9 (UPI) -- Israeli Prime Minister Ehud Olmert has agreed to concede to the Palestinians in the ongoing effort to find peace , a news magazine said. During talks with German Chancellor Angela Merkel , Olmert agreed to have the biweekly talks with the Palestinians supervised by a European observer , German news magazine Der Spiegel said in its latest issue. Israel had on repeated occasions promised the Palestinians forms of relief in the dialogue , including the cutback of military controls; the agreements were often broken. Merkel warned the Israeli and Palestinian authorities not to drag on for fruitless meetings without actual progress , which could lead to great "disappointments" on both sides. "We can't have an endless amount of meetings and nothing happens ," Merkel told the negotiating parties , Der Spiegel said. Sources from Olmert's office told the magazine the progress was due to the very high standing Merkel enjoys with the Israeli government. "You are great , Angela," Olmert told the chancellor over dinner, according to the magazine.

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