The LAS, Russia and the EU welcomed the new national unity government, believing it has set the stage for constructive cooperation between the Palestinians and the international community and the dialogue between the Palestinians and Israel. Israel, however, rejected the new Palestinian Government, vowing that it will not cooperate with it unless Hamas changes its policy toward Israel. The U.S. attitude is still unclear. Israeli newspaper Ha'aretz reported that it would be difficult for Israel to persuade the United States not to deal with the new government, especially those who maintain good relations with the United States and the EU.

A long way to go

Although the international community is making every effort to promote the Middle East peace process, peace will not be realized in the volatile region any time soon.

Hamas took a "softer" line in forming the national unity government largely for the purpose of gaining international aid. Also, it further legalized itself with this move. Hamas and Fatah have glaring differences over ideology, political programs and values. More importantly, their contention comes down to a rivalry for power. Fresh conflicts are therefore inevitable.

In fact, as Haniyeh and Abbas were engaged in heated negotiations, conflicts broke out again between Hamas and Fatah militants in northern Gaza on the night of March 14. It remains uncertain how far the two rivals can go in the unity government.

Israel has been in a political upheaval since the end of 2005 and early 2006. The Israeli Government has undergone frequent reshuffles, especially since the Israel-Lebanon conflict last summer. Prime Minister Olmert, Defense Minister Amir Peretz and former Defense Forces Chief of Staff Dan Halutz are currently under investigation by the Winograd Committee for their conduct during the Israel-Lebanon conflict. Initial results are expected to come out next month, which may plunge the government into a new political crisis or even force an early election. Given the political instability at home, Israel may find it difficult to make any progress in the peace talks with the Palestinians.

The U.S. policy toward the Middle East has a direct bearing on peace in the region. Now that the Arab world and Israel are locked in a standoff, their peace talks will not make headway unless a third party intervenes. Since President George W. Bush assumed office in 2001, the United States has been indifferent toward the Middle East peace process. As it is deeply mired in Iraq, the United States is shifting its foreign policy from unilateralism back to pragmatism. However, Rice has taken an active stance toward the Middle East peace process. To make predictions on the future of the region is anything but easy. 

The author is a scholar at the China Institute of International Studies