Palestinian rival leaders fail to agree on coalition

Palestinian president Mahmoud Abbas and Hamas’ exiled chief failed to resolve an increasingly bitter dispute and form a unity government, dashing hopes for a quick end to the political crisis.

However, Abbas and Hamas top leader Khaled Mashaal yesterday said the two sides “achieved major progress” during their meeting in Syria – the first since July 2005 – and pledged to continue talks on forming a coalition government within the next two weeks, according to a joint statement.