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EU envoy meets new Palestinian government official

A top EU envoy met with a senior member of the new Palestinian government, joining the US in ending a year of ostracism and leaving Israel increasingly isolated in its demand for a total boycott of the Hamas-Fatah coalition.

The envoy, Marc Otte, went to the West Bank city of Ramallah on Wednesday to see the new finance minister, respected economist Salam Fayyad, a day after the US consul in Jerusalem met Fayyad, a political independent.

However, the Islamic militant group Hamas itself is still being shunned, and economic sanctions remain in place.

Donor countries had to send more aid to the Palestinians last year than the year before to ease a humanitarian crisis set off by the embargo. Despite the increased aid flow, public institutions and services suffered because the funds bypassed the government, and the Palestinian economy shrank by 6.6 percent.

The Palestinians hope their new government, an alliance of Hamas and the Fatah Party of President Mahmoud Abbas installed on Saturday, will lead them out of international isolation -- even though the coalition stopped short of meeting the international conditions for acceptance, such as recognizing Israel's right to exist.

Officials said on Wednesday the first signs are encouraging, despite Israel's decision to shun the new government and rule out a resumption of peace talks.

"I think the international community is accepting and dealing with this national unity government," Information Minister Mustafa Barghouti said on Wednesday.

In an unexpected step, the US consul general in Jerusalem, Jacob Walles, met on Tuesday with Salam Fayyad, who had earned the trust of the Bush administration in his first term in the treasury, before Hamas came to power last year.

The meeting came despite initial US criticism of the Palestinian government's failure to meet the international conditions.

Speaking to the Arabic satellite TV station Al-Jazeera, Walles praised Fayyad.

"We look to work with him and others," Walles said in comments dubbed into Arabic. "The environment is difficult but we continue to work with the Palestinians and offer assistance in order to achieve the vision of a Palestinian state."

In another show of support, Otte held talks with Fayyad on Wednesday, a day after meeting with the new Palestinian foreign minister, Ziad Abu Amr, also an independent.

US Secretary of State Condoleezza Rice and German Chancellor Angela Merkel, are also expected in Ramallah over the weekend, but it is likely they will only meet with Abbas, not members of the new Cabinet. Germany currently holds the rotating EU presidency.
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