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Hamas Faces Money Crunch

After besting its rivals at the ballot box, Hamas now faces a far more challenging campaign: a fight to keep the international donor community, which has kept the Palestinian Authority (P.A.) functioning since 1994, from cutting off funding. The United States and the European Union, often at odds over Middle East policy, now appear united in their stance: If it wants the world`s assistance, Hamas must change. "The Hamas party has made it clear that they do not support the right of Israel to exist," U.S. President George W. Bush said Monday. "And I have made it clear that so long as that`s their policy, we will not support a Palestinian government made up of Hamas."

Germany`s new chancellor, Angela Merkel, presented a similar message during a visit to the region on Monday. Visiting the Palestinian capital of Ramallah, she asked P.A. President Mahmoud Abbas, leader of the ousted Fatah party grouping, to press the now-empowered terrorist group Hamas to abandon violence for the ballot box exclusively, and recognize Israel. "As a president, he should urge Hamas to respect certain principles," Ms. Merkel said. If Hamas holds to its hallmarks - calling for Israel`s destruction and using suicide bombers - "the E.U. would be unable to continue funding the P.A.," she said. In a statement Monday, though, a meeting of E.U. ministers made an announcement that backed away from saying the E.U. would completely, totally cut funding to a government led by the terror group.

America is taking a much harder line on Hamas than Europe, because it considers (like the E.U.) Hamas a terrorist organization and isn`t willing to give Hamas any passes until it atones for past actions by changing its positions in fact as well as in name. The hope is that pressure to keep foreign funding from coming to the P.A. will push Hamas leaders to make some crucial decisions about their stances if they want to move into the business of governance and away from being branded terrorists. At least half of the P.A.`s $3 billion budget is dependent on funds from donors.