The report, released Tuesday by the independent non-governmental organization, says the U.N. Security Council's reluctance to take action against either Ethiopia or Eritrea and the overall neglect of the tense situation could allow hostilities to escalate further into a full-blown repeat of the nations' 1998-2000 war, the Crisis Group reported.

The report, entitled "Beyond the Fragile Peace Between Ethiopia and Eritrea: Averting New War," analyzes the ongoing stalemate over the border conflict between Ethiopia and Eritrea. The instability in the region has only grown worse recently, with Ethiopia's refusal to accept virtual demarcation of the border and the provocations from Eritrea forces.

"The departure of the Ethiopia-Eritrea Boundary Commission and the U.N. peacekeepers has made this conflict much more dangerous, removing the means both for dialogue between the parties and for stopping small problems from escalating," Andebrhan Giorgis, Crisis Group senior Africa adviser, said in a statement.

"Neither regime wants war at present. Both prefer to keep tensions simmering, giving them an excuse to maintain authoritarian rule, but a minor border incident or miscalculation could produce a disastrous return to conflict."

The Crisis Group report calls for a reconfigured 2000 peace agreement between the countries and the immediate withdrawal of Ethiopian troops out of the temporary security zone. Additionally, officials say, a dialogue needs to be facilitated to take any steps forward.

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