MANILA - The European Union on Wednesday urged the Philippine government and separatist group Moro Islamic Liberation Front (MILF) to speed up the resumption of peace talks to ease the suffering of people displaced by the decades-old conflict.

"The EU encourages both sides to build on recent positive developments and to resume the formal peace talks at an early date," said a statement issued by the European Commission office here.

It said talks could enable "internally-displaced persons, whose continuing difficulties EU heads of mission in Manila had the opportunity to witness during a recent visit to Central Mindanao... to return to their homes."

Manila and the 12,000-member MILF signed a new ceasefire in July, 11 months after long-running peace talks were derailed by a series of deadly guerrilla attacks on Christian settler communities across the southern island of Mindanao.

Despite the ceasefire, both sides have been slow to restart the talks, with the government accusing a senior MILF leader of being behind the October 11 abduction of an Irish Roman Catholic priest, Father Michael Sinnott, 79.

The MILF has denied the allegation and warned that the issue could affect the peace process.

About 300,000 people are still living in temporary evacuation camps or with their families and relying on foreign aid for food and other necessities, according to the aid agencies involved.

Interior Secretary Ronaldo Puno on Wednesday suggested that Sinnott's abduction was the only remaining hurdle to restarting the formal talks.

"Considering that the peace talks are about to start, what they (MILF) can do is to get Father Sinnott released unharmed. If that happens, that would be a good start to the peace negotiations," Puno told reporters.

He warned that government forces would soon step up efforts to secure the ailing priest's freedom.

"From containment before, the operations will proceed to constriction," he said.

"We know where they are, more or less, and we will progressively reduce the areas in which they are able to move. I hope the MILF central committee will be able to convince them (kidnappers) before this starts," Puno said.