Haniyeh rejects talks with Israel
Middle East Desk Report

GAZA—Prime Minister Ismail Haniyeh of Hamas on Tuesday poured cold water on any hopes a new Palestinian unity government might seek peace talks with Israel.
Israel and the United States have responded skeptically to the planned unity coalition, agreed by Haniyeh and President Mahmoud Abbas on Monday as a way to lift a Western aid boycott imposed on the Hamas-led government in March.
The European Union has been more positive, believing it could re-energize the Middle East peace process.
Asked by Reuters if the new administration would negotiate with the Jewish state, Haniyeh said: "No. Negotiations have to do with the PLO and not with the government."
Previous peace talks with Israel have been conducted by the Palestine Liberation Organization (PLO), which until the Hamas militant movement took power was seen as having the same interests as the government.
In a move that might help ease tensions, an Israeli military judge ordered the release of 21 Hamas officials detained in raids after a soldier was abducted by gunmen in the Gaza Strip in June, an army spokesman said.
A lawyer for the detainees said the release roster issued by Ofer Military Court included at least three Hamas cabinet ministers and a lawmaker. But implementation of the ruling was deferred until Thursday so prosecutors could appeal.
Israel regards Hamas, which seeks to destroy the Jewish state, as a terrorist organization.
Haniyeh, who is likely to head the unity government, has previously said he would not object to Abbas negotiating with Israel through the PLO but that any agreement would need to be ratified by parliament where Hamas has a majority.
Israel has said it would not talk to any Palestinian government that does not accept three conditions laid down by the Quartet of Middle East mediators -- recognize Israel, renounce violence and abide by past interim peace accords.
The Hamas movement's insistence on refusing to recognize Israel has raised questions over whether the new coalition would satisfy those demands.
But some Western diplomats and analysts believe the European Union might settle for less than Washington and reach out to non-Hamas ministers in a new government to get aid flowing.
In a reported released on Tuesday, a United Nations agency said economic sanctions had left the Palestinian economy "on the verge of collapse," with two out of three families struggling to survive below the poverty level.
"Poverty continues to widen and deepen," said the U.N. Conference on Trade and Development (UNCTAD).
Palestinian officials said it could take two weeks for the unity government to be formed.
Abbas said he hoped its formation would satisfy the international community and lead to the lifting of sanctions.
"We are totally satisfied with what we achieved and we hope it will be met with international acceptance," Abbas said after meeting Spanish Foreign Minister Miguel Angel Moratinos in Gaza.
Moratinos said details of the unity government needed to be studied but that its creation would be a positive step.
"We hope the doors will reopen for the Palestinian people so they can lead a stable life," he said through a translator.
In Gaza, gunmen killed an Israeli soldier, the army said, announcing its first fatality in the territory since renewing ground operations three months ago.