Palestinian deal falls short

last updated 8 January 2015

Mecca, Saudi Arabia

Rival Palestinian parties have agreed to form a joint government in the hope of ending an international aid boycott. The U.S. and European Union, the main financers of the Palestinian Authority, stopped payments last year, after the Islamic militant group Hamas came to power. They said they would only support a government that recognizes Israel and renounces violence. The new joint government of Hamas and the more moderate Fatah party—brokered by the Saudis—does neither. It does pledge to respect all existing treaties with Israel, but the U.S. and E.U. said that’s not enough to get the money flowing. The government’s inability to pay salaries has spurred militants to seek backdoor funding from Iran.