The European Union today threatened to cut off aid to a Hamas-led Palestinian government "unless it seeks peace by peaceful means," in its strongest signal on the issue to date.
The EU foreign ministers reviewed financial aid to Palestinians, but announced no immediate halt to funds as long as Hamas has not formed a government. It was expected to do so later this month.
"We want to remain a reliable partner for the Palestinian people, but we will not go soft on our principles," EU External Relations Commissioner Benita Ferrero-Waldner said.
"Money will not flow to the new (Palestinian) authority unless it seeks peace by peaceful means." Ferrero-Waldner spoke at the outset of two days of informal talks by EU foreign ministers in Salzburg.
German Foreign Minister Frank-Walter Steinmeier said the EU wants to see the Hamas-led government's program to find out what its stance is on the "road map" to Middle East peace drafted by the United States, the EU, Russia and the United Nations.
The EU expects a Hamas-led government to recognise Israel, renounce violence and accept all previous agreements between the Palestinians and Israel. If it does not do that, "there can be no cooperation with a government that is led by Hamas," Steinmeier said.
He added the EU has so far not seen any "meaningful signals" from Hamas, which is committed to Israel's destruction.
The decision to hold off on cutting aid was seen as a bid to pressure Hamas, which won the January 25 Palestinian elections, to shed its strident anti-Israel views and ensure EU aid continues to ease the economic plight of the Palestinian people.
Officials said one way for Hamas to do so was to endorse a 2002 peace initiative of Arab nations that includes a recognition of Israel's right to exist. French Foreign Minister Philippe Douste-Blazy urged Hamas to take action on the demands, but said money must still make its way to the Palestinian people.
"We must avoid an economic suffocation of the Palestinian territories," Douste-Blazy said. "If we want to avoid social chaos, economic chaos and security chaos, it is in our interest to help the Palestinian population."
Israel has already halted monthly transfers to the Palestinian Authority of some €30 million in tax receipts following Hamas' election victory.
The 25 EU foreign ministers grappled with the question of how Europe can remain the largest donor for the Palestinians without any of their aid ending up in the till of a government led by a faction both the United States and the EU consider a terrorist organisation.
In a three-page report to the foreign ministers, the European Commission warned that channelling aid solely through non-governmental groups offered no guarantee some of the funds wouldn't end up in the hands of Hamas.
Hamas politician Mahmoud Zahar reacted angrily to the demand his group fall in line with the peace process. "What are the peaceful means?" he asked. "Do they want us to respect Israel's decision to kill and detain our children?" He urged the EU to issue a response to Israeli actions against Palestinians.
"They shouldn't just talk about the Palestinians, but also about Israel," he said. EU foreign policy and security affairs chief Javier Solana presented them with an update of current aid programmes he co-wrote with Ferrero-Waldner.
The paper offered no funding options, nor a recommendation for an immediate cut off of EU aid to the Palestinians.
AP