Palestinians agree on statehood deal

Hamas’s refusal to recognise Israel, renounce violence and abide by past agreements has seen its government boycotted and its finances go into free fall after the EU, once its largest donor, and United States suspended direct aid.

The 18-point national reconciliation document also calls for an end to attacks in Israel and the creation of a national unity government.

Abbas had vowed to put the statehood initiative to the first ever Palestinian referendum on July 26 should no agreement be reached, although Hamas had slammed the vote as an attempt to overthrow its government.

Hamas and Fatah representatives have been locked in on and off crisis talks since May 25 which had hitherto failed to reach an agreement amid a surge in deadly political feuding in the Gaza Strip that prompted fears of civil war.

Officials had nevertheless been recently increasingly upbeat about clinching a deal and overcoming major sticking points such as acceptance of a 1967-border Palestinian state, the supremacy of the Palestine Liberation Organisation and talks with Israel.

Hamas’s charter calls for armed resistance rather than negotiations to solve the Middle East conflict, and the destruction of the Jewish state rather than an independent Palestine in Gaza and the West Bank, including east Jerusalem.

Observers say the statehood charter, drawn up by faction leaders jailed in Israel, would amount to de-facto recognition of Israel, one of the West’s central demands before aid is resumed to the beleaguered Hamas government.