PALESTINIAN President Mahmoud Abbas has apologised following a speech he made this week widely condemned as anti-Semitic.

He said it was the “social functions” of Jews, including money-lending, that caused hatred toward them in Europe.

He also said there was no historical “basis for the Jewish homeland”.

The speech drew criticism around the world that Abbas perpetuated anti-Semitic stereotypes and ignored deep Jewish historical connections to the Holy Land.

Palestinian officials say Abbas was under intense pressure from diplomats to apologise.

“If people were offended by my statement ... especially people of the Jewish faith, I apologise to them,” news agency Wafa quoted Abbas as saying.

Abbas was re-elected as the country’s president yesterday.

The Palestine Liberation Organisation (PLO) also gave new powers to a decision-making body stacked with his loyalists and pushed out remaining dissenters in a carefully staged four-day convention that ended yesterday.

The decisions by the PLO parliament also opened the door to a possible path of succession, though Abbas has blocked any discussion about what will happen when he leaves politics.

The session of the PLO parliament – meant to represent Palestinians everywhere – cemented the shift of power to the West Bank-based Abbas.