The United States has so far responded with scepticism towards Palestinian President Manmoud Abbas’ announcement of the formation of a Palestinian unity government; U.S. Assistant Secretary of State for Near Eastern Affairs, David Welch, stated that “…Washington would only deal with a new unity government if it met three conditions laid down by the Quartet of Middle East mediators -- renounce violence, recognize Israel and abide by past Israeli-Palestinian accords.” (Reuters)

Meanwhile, the European Union has expressed more positive reactions, reaffirming that the deal would offer some hope for the revival of the “peace process.”

Palestinian reactions, embodied by various political groups and key national figures, have also been somewhat dichotomised between support and condemnation of the anticipated new government. Some members of FATEH, Abbas’ secular now-opposition faction, have been vocal in directly dismissing the decision as “…Abu Mazen’s attempt to save HAMAS from complete collapse,” insinuating that the current ruling party would not have had a chance to overcome internal pressures, most notably the ongoing workers’ strike demanding unpaid wages.

HAMAS supporters have been less outspoken regarding the formation of the unity government, but there are conflicting reports that some HAMAS legislatures have expressed their belief that their faction will not necessarily be obliged to fulfil the conditions outlined by the Quartet, even if the new government does.

Meanwhile, Palestinian Prime Minister Ismail Haniyyeh (HAMAS), who is expected to be re-appointed by Abbas in his position for the new government, has already stated that the government itself will not be bound to seek peace with Israel, adding that this is the domain of the PLO, and not of the Palestinian Authority.

The current political reshuffling is expected to salvage the Palestinian territories from increasing economic pressures, particularly as the international donor community would reconsider its decision last February to cut off direct funding to the Palestinian Authority, and eventually channel desperately needed funds into the basic public sectors.