Following the signing of the Fatah- Hamas reconciliation pact in Cairo on Wednesday, Israeli Foreign Minister Avigdor Lieberman is planning to demand the government cut off all ties with the Palestinian leadership.
The ultra-nationalist Yisrael Beiteinu party headed by Lieberman issued a statement Wednesday, saying the minister plans to bring up the issue possibly at the weekly Sunday cabinet meeting.
Beyond severing diplomatic contacts, Lieberman will also ask all the government ministries to cease cooperation with the Palestinian National Authority (PNA) and call for continuing to withhold the regular transfer of tax revenues to the Palestinian government.
Lieberman did not, however, mention the security cooperation with the PNA, which has reaped benefits and trust for both sides.
"The state of Israel cannot be expected to transfer funds to Hamas or in so doing fund terror activities against its citizens," the
statement said, adding that Hamas "cannot be a partner to ( peace) negotiations, neither directly nor indirectly."
Israeli Prime Minister Benjamin Netanyahu also slammed the Egyptian-brokered agreement, which promises an interim unity government and elections within a year, as a "victory for terrorism."
"What happened today in Cairo is a tremendous blow to peace and a great victory for terrorism," Netanyahu told reporters in London, where he arrived Tuesday night on an official visit.
However, some Israeli analysts believe that the Fatah-Hamas alliance can play into Netanyahu's hands, at least up to September, when the Palestinians go to the United Nations General Assembly seeking a resolution of supporting a Palestinian statehood.
The prime minister can turn to the United States and the international community, saying he now officially has no peace partner, since Israel has repeatedly said it will not negotiate with Hamas, whose founding charter calls for Israel's destruction, said the analysts.
Netanyahu earlier called on the Palestinian President Mahmoud Abbas to immediately annul the agreement with Hamas, saying the latter must choose between a "path of peace with Israel" or peace with the Islamist group who "aspires to destroy Israel."
However, some senior Israeli security officials said some of the remarks on the accord was outracing the reality.
Yuval Diskin, the outgoing chief of Israel's Shin Bet security agency,said the fears expressed by the Israeli authorities over the unity deal have been "blown out of proportion."
"There have been attempts at reconciliation for a long time, as has the blame game between Fatah and Hamas," Diskin told reporters in Tel Aviv.
The security chief described Hamas' decision to be reconciled with Fatah as a "tactical move" that emanates from recent developments in the region, mainly the social unrest currently sweeping the Arab capitals.
"In the years to come I expect to see a real reconciliation on the ground," he said.