Britain, Australia and Canada Sunday recognised a Palestinian state in a seismic shift in decades of Western foreign policy, triggering swift Israeli anger. Portugal also declared later in the day that it recognises Palestine as a state. Today, to revive the hope of peace for the Palestinians and Israelis, and a two state solution, the United Kingdom formally recognises the State of Palestine. Palestinian president Mahmoud Abbas said Sunday that Britain's recognition of a Palestinian state was a necessary step toward lasting peace in the region. Calls for a Palestinian state "would endanger our existence and serve as absurd reward for terrorism," Netanyahu said Sunday.