Door Open to Palestinians

In separate statements from their foreign ministries, France and Austria signaled they would take the first, tentative steps toward official contact with members of the new government not from the ranks of the Islamist movement.

France will meet moderate ministers, while Austrian Foreign Minister Ursula Plassnik invited her Palestinian counterpart Ziad Abu Amr, an independent, to visit. Belgian Foreign Minister Karel De Gucht may also hold talks with him.

"There is no EU decision that would ban such visits, nor any decision laying out the EU's policy on such contacts," explained the European Commission's spokeswoman for external affairs, Emma Udwin.

The United States also made contact with the independent finance minister, according to Palestinian sources, while non-EU country Norway has gone further and recognized the government outright.

Germany Mideast quartet's demands met

German Chancellor Angela Merkel told Palestinian President Mahmoud Abbas in a telephone conversation on Tuesday that she was pleased the new Fatah-Hamas unity government had contributed to some internal stability ion the region, according to government spokesman Ulrich Wilhelm.

"At the same time, she urged again that the new government fulfill the criteria of the so-called Middle East Quartet, in particular the renunciation of violence and the recognition of Israel,"

Wilhelm said.

Hamas swept to power a year ago. The elections that brought it to office were endorsed but the result was shunned by the EU and the United States, as the group ranks on their terror blacklists.

It led to the end of direct aid to the Hamas government, including a Israeli boycott of hundreds of millions of dollars of tax and customs duties owed to the Palestinian Authority, and drove it into bankruptcy.

No official ties, but doors still open

On Monday, the United States and European Union agreed to withhold recognition of the unity government grouping Western-backed moderates and Islamic radicals, but they did leave the door open to future official ties.

The two along with the United Nations and Russia, who all make up the Middle East diplomatic Quartet, insist that the cabinet's program must recognize Israel, renounce violence and respect past peace agreements.

"I have to say that this government does not comply fully with the principles," EU foreign policy chief Javier Solana said Monday. "It's much more important what they do than what they say at this point in time."

Palestinian officials have repeatedly called for an end to the international aid boycott, as the Gaza Strip spiraled into economic chaos and violence.

EU wants proof from Palestinians

But officials said on Tuesday that the EU was in no hurry, without proof that the new government is as good as its word.

"We need to see real action from the government, and that won't happen from one day to the next," one official in Brussels said, on condition of anonymity.

The Union is by far the biggest aid provider to the Palestinians. It donated some 700 million euros ($900 million) last year, without any of the money reaching Hamas.

Even with Hamas being by-passed, the amount was around 200 million euros more than it usually provides annually.

Finding fair aid model

Most of the funds went through a temporary mechanism set up to provide fuel for hospitals and generators and pay temporary allowances to those most in need, and officials expect that to evolve.

"The question of how to normalize financial assistance is something that will be addressed very gradually," the EU official said. "The temporary mechanism will evolve."

"We'll keep using the mechanism for a while," said Solana's spokeswoman, Cristina Gallach. "It allows us to give aid. We're not going to close the door but we're not going to open it right up either."

Officials agreed that the EU's position on dealing with the government -- at least non-Hamas members in it -- is likely be made more formal at a meeting of the bloc's foreign ministers in Bremen, northern Germany late next week.