The rival Hamas and Fatah parties today froze talks on forming a Palestinian unity government, Fatah officials said, a new setback in efforts to form a more moderate coalition acceptable to the West.
The deep differences raised questions about the ability of the sides to reach a deal that could end months of painful economic sanctions that have bankrupted the Palestinian government and caused widespread hardship in the West Bank and Gaza Strip.
The sudden announcement of a breakdown came after months of negotiations that appeared to be heading toward formation of a Cabinet of independent experts to replace the Hamas-led body. Palestinian President Mahmoud Abbas of Fatah met late Sunday with Prime Minister Ismail Haniyeh of the ruling Islamic group Hamas in Gaza, and officials said the session was cordial.
But Abbas aide Nabil Amr confirmed today that the talks had reached a standstill.
"We would say talks are suspended now," he told a news conference. "What we have agreed upon is only the first mile over the 1,000-mile road."
It wasn't clear whether the suspension was the sign of a real crisis or simply a negotiating tactic by Abbas' weakened Fatah Party.
Hamas officials denied any serious trouble. "Talks are continuing on the highest levels," Haniyeh said.
However, no new talks were scheduled.
The two sides earlier agreed on a US-educated academic as the candidate for prime minister to replace Haniyeh, and crafted a foundation for a joint government that would leave negotiating with Israel up to Abbas, while Hamas would deal with day-to-day issues.
Hamas won parliamentary elections and took office in March. The U.S. and Europe then cut off aid to the Palestinian government, labeling Hamas a terror group for its history of suicide bombings and other attacks against Israelis.
AP