EU cautiously optimistic on Palestinian pact

European Union officials said today they were cautiously optimistic about a Palestinian power-sharing deal reached by Hamas and Fatah political leaders in Saudi Arabia, but said it was too early to lift an international aid embargo against the Hamas-led Palestinian government.

German foreign minister Frank-Walter Steinmeier said in Berlin the agreement reached yesterday between the two groups would be studied “very carefully” over the coming days, and that he would discuss it with colleagues in the so-called Quartet of Mideast negotiators – the US, EU, United Nations and Russia.

EU officials said that experts would look at the accord to see whether it met international demands that the Islamic militant group Hamas, which currently runs the Palestinian government, recognise Israel, renounce violence and embrace prior agreements between Israel and the Palestinians to work toward peace.

“Our expectations of the Palestinian side are clear,” Steinmeier told reporters.

“Violence against Israel must come to an end, the dialogue with the Israeli government started by President (Mahmoud) Abbas must be continued,” he said. “The basis remains all the agreements to date between Israel and the (Palestinians), as well as the roadmap.”

Hamas, which has refused to meet international demands to recognise Israel, agreed at the talks in Mecca, Saudi Arabia, only to “respect” past peace deals with Israel as it leads a new coalition government with Fatah.

“We expect from all parties that they remain committed to the aim of a two-state solution, with mutual recognition,” Steinmeier said.

EU spokeswoman Emma Udwin told reporters in Brussels that a new unity government “can bring a halt in the violence between the various parties".

She said that the 27-nation bloc hopes such a government “would reflect the principles that have been set out.

“We really need to see what has been written down, what has been agreed and what the consequences would be for our relationship.”

EU officials said, however, it was too early to resume sending international aid to the Palestinian Authority that was cut off when Hamas took control of the Palestinian Cabinet and legislature in last year’s elections. The EU, Washington and the UN have frozen around £500m (€749.4m) a year in aid to the Palestinian Authority.

International donors have, however, set up a special temporary aid plan for the Palestinians that bypasses the Hamas-led government.

Donors have sent some £450m (€674.5m) through the World Bank-monitored aid scheme directly to Palestinians in need last year. The bulk of that aid came from EU coffers.

EU officials said External Relations Commissioner Benita Ferrero-Waldner was to outline a possible expansion of the aid plan at foreign ministers’ talks on Monday.

Officials said this would go beyond the current payments to help pay for energy supplies, keep hospitals open and pay for allowances to unemployed and impoverished Palestinians.

Officials said the temporary aid scheme could be expanded to include boosting economic development, bolstering Palestinian institutions not controlled by Hamas – like Palestinian President Mahmoud Abbas and border management agencies - and giving aid to fight corruption.

This possible expansion they said, was agreed to at a meeting of the Quartet of Middle East peace mediators, which met in Washington last week.

French Foreign Minister Philippe Douste-Blazy said in Paris that inclusion of the term “respect ... is a step in the right direction, toward full adherence to the demands of the international community that we hold dear, including in particular the recognition of Israel.”

EU officials said they would also look at who would fill what posts in the new Palestinian Cabinet, which is expected to be led by current Palestinian Authority Prime Minister Ismail Haniyeh of Hamas.

Under the agreement, Hamas will get nine Cabinet posts, including the prime minister position. Fatah gets six, and other factions get four. Besides the interior ministry, independents will get the foreign ministry and planning ministry.

EU foreign policy chief Javier Solana’s spokeswoman Cristina Gallach said Solana has been on the phone with other members of the Quartet deciphering the exact detail of the power-sharing accord.

The EU’s 27 foreign ministers were expected to discuss the power-sharing accord at talks on Monday, and assess whether it meets international conditions. However, diplomats said no decision was expected until after a new unity government takes power, and proves it will adhere to the conditions, which they don’t expect to happen for the next several weeks.