Crises Make Mideast Peacekeeping Possible

In this picture released by the Israeli Government Press Office, Israeli Prime Minister Ehud Olmert, left, shakes hands with Palestinian President Mahmoud Abbas after a breakfast hosted by Jordan's King Abdullah, not seen, during a conference of Nobel Prize laureates in the ancient city of Petra, Jordan, in this June 22, 2006 file photo. A series of crises, not a sudden burst of goodwill, has made long moribund Israeli-Palestinian peacemaking possible again: economic meltdown in the West Bank and Gaza, plummeting popularity for Israel's prime minister after his inconclusive war in Lebanon, President Bush's troubles in Iraq and Afghanistan. (AP Photo/Moshe Milner/Government Press Office, File) (Moshe Milner - AP)

RAMALLAH, West Bank -- A series of crises, not a burst of goodwill, has made long moribund Israeli-Palestinian peacemaking possible again: economic meltdown in the West Bank and Gaza, plummeting popularity for Israel's prime minister after the war in Lebanon, President Bush's troubles in Iraq and Afghanistan.

Yet, as much as progress on Mideast peace could help rescue the political fortunes of the Palestinian, Israeli and U.S. governments, renewed peace talks are far from certain.

The Palestinians' Hamas rulers, while signaling a willingness to share power and honor a cease-fire, aren't ready to recognize Israel's right to exist _ a key demand of the U.S. and Israel. And Israeli Prime Minister Ehud Olmert may never regain the legitimacy needed for peace concessions.

However, Olmert spokeswoman Miri Eisin indicated Israel might be able to accept something less than full recognition by Hamas, saying her government's demands were "not etched in stone." So Hamas' formula for progress _ a new national unity government that would accept statehood in only part of historic Palestine _ could be a starting point for easing an international aid boycott that has crippled Hamas' 6-month-old government.

Assembling a unity coalition, however, is proving to be a challenge because of Hamas' refusal to recognize Israel. A meeting Tuesday between Palestinian President Mahmoud Abbas of Fatah and Prime Minister Ismail Haniyeh of Hamas to salvage coalition talks was called off because Abbas was enraged that Hamas officials accused him of withholding money from the Palestinian people, senior Palestinian officials said.

Abbas said Saturday that his efforts to form a unity government were "back to zero" after Hamas backtracked on promises to moderate its stance. A day later, however, Haniyeh said Hamas had "serious intentions" to make a unity government succeed, and would re-engage Abbas on the issue.

The public jockeying has become something of an embarrassment for Abbas, who announced to the U.N. General Assembly last week that any future Palestinian government would recognize Israel.

For Palestinians, it's much more than a political tussle. The withholding of hundreds of millions of dollars in aid has sent their economy into a tailspin, leaving Hamas unable to pay 165,000 government employees whose salaries support about a quarter of the population.

People are making ends meet by selling jewelry and giving up meat. A workers' strike has shut half the schools in the West Bank. Electricity rationing has forced many Gazans to break their Ramadan fast in the dark.

A short conversation with Mahfouz Salah, a 62-year-old street seller in Gaza, shows the depth of the crisis.

"The way we survive is by sending out the women to beg at the charity organizations for coupons and flour. The men feel ashamed to go," he said.

Mohammed Younis, a 23-year-old policeman, said he often doesn't show up to work for lack of bus fare. He said his family has taken to buying prepared foods.