Two key meetings took place on Monday to discuss future relations between the international community and the newly elected Hamas party in the Palestinian territories.
The International "Quartet" met in London, while in Brussels, ministers of the European Union met to discuss the matter as well.
The EU called in Hamas to embark on the road to peace with Israel, as well as calling on the group to clarify its political positions. If Hamas agrees to pursue peace with its Israeli neighbors, the EU will continue to fund the Palestinians, according to a draft text to be reviewed on Monday.
"The EU stands ready to continue to support Palestinian economic development and democratic state-building," on condition the new Palestinian Legislative Council backs the creation of a government "committed to a peaceful and negotiated solution of the conflict with Israel," the text said, according to a statement of an EU diplomat quoted by Reuters.
Many in the international community have stated that relations with, and funding for Hamas would be contingent upon the movement’s renouncing violence and recognizing Israel’s right to exist.
Acting Israeli Prime Minister Ehud Olmert, meeting with Germany’s Chancellor Angela Merkel at a press conference, said that, "We are not prepared in any way or shape [for] money which the Israeli government transfers will come under control of murderous elements who are interested in the destruction of Israel.”
Germany has expressed its reservations about transferring funds to the Palestinians under the new circumstances. Last year, some $600 million was provided to the PA by the European Union, while over the last five years, some $1.5 billion was transferred to the Palestinians.
The US reiterated on Sunday its intention to deny funding to Hamas, saying that the group would have to face the consequences of its policies.
"It is important that Hamas will now have to confront the implications of its covenant if it wishes to govern,” said U.S. Secretary of State Condoleezza Rice, according to Reuters, referring to Hamas’ official covenant which calls for the liberation of all of Palestine from Israeli sovereignty, a goal seen by many as the elimination of the State of Israel. Last year, the United Stated provided some $363 million to the PA.
Also on Sunday, the French ambassador to Israel, Gerard Araud, stated that the EU might consider transferring funds to the PA through alternative sources, such as non-governmental organizations, according to Haaretz.
He added that Hamas’ election was “worrying,” and that France would refrain from dealing with the group.
Israel, on its part, announced on Sunday that a $43 million grant intended for the Palestinian Authority would be withheld as well, reported Haaretz. ]
The sum, derived from Israeli government tax revenues, was set to be transferred to the PA on Wednesday. Government officials, however, declined to say whether or not the decision represented a permanent freeze in funds.
On Sunday, Olmert and Merkel pledged to refrain from negotiating with Hamas until it renounced violence and recognized Israel’s right to exist.
Merkel met with Palestinian President Mahmoud Abbas on Monday in the West Bank town of Ramallah. The Chancellor did not be meeting with Hamas representatives.
However, Israel’s Defense Minister Shaul Mofaz, has expressed support for the funding, saying that without it, the Palestinian Authority will be unable to provide basic services to the Palestinian people, thus requiring Israel to step in.
Israel is also concerned that Iran may fill the funding vacuum were it and the international community to cut funding to the Palestinians.
Meanwhile, Egypt’s Prime Minister Ahmed Nazif called on Hamas to abide by the Oslo Accords and work towards implementation of the Road Map peace plan.
He added the group should strive for a future where an Israeli and a Palestinian state live side by side in peace, and urged Israel to continue a political process with the democratically elected Hamas.
Nazif stated that the PA needed some $100 million to continue proper functioning.
Hamas urges international community not to cut aid to Palestinians
In response to the growing controversy over funding, Hamas representatives on Monday urged the international community not to cut aid to the Palestinian Authority.
Hamas leader Ismail Haniyeh stressed that any funding would not be spent on terror. "We assure you that all the revenues will be spent on salaries, daily life and infrastructure," he said in an interview with Al Arabia, according to the AP.
Another Hamas leader, Mohammed Nazzal, who is based in Syria, stated that cutting funding would only hurt the Palestinian people, and that Hamas would not be moved by such threats.
"Cutting off funds now will be a punishment of the Palestinian people, not of Hamas," he said.
"If the European Union countries and the American administration see this as a means that could lead to a change in Hamas' strategic position then they are dreaming and are mistaken. Hamas will never accept that," he said.