Palestinian Prime Minister Ismail Haniyeh at his office in Gaza City on the day of the announcement of the unity government. (Wesam Saleh, Maan Images)

Palestinian President Mahmoud Abbas of the nationalist Fatah Party and Prime Minister Ismail Haniyeh of Islamic Hamas have agreed to form a new national unity government in what appears to be an attempt to gain international legitimacy and obtain sorely needed economic aid.

Abbas and Haniyeh announced their agreement Monday in Gaza after months of negotiations.

"In the coming days we will start forming the national unity government... The Palestinian interest lies in getting all the Palestinians to work together so as to achieve victory and accomplish a Palestinian independent state with Jerusalem as its capital," Abbas declared according to the Maan news agency.

"Everybody is proud that we are going to establish a national coalition government which will protect the rights of Palestinians and our interests and enhance our national unity," Haniyeh stated.

The president's spokesman, Nabil Abu Rudeineh, told United Press International that in two or three days Abbas would issue a decree dissolving the Hamas-led government and will ask Haniyeh to form a new national unity government. Hamas controls almost two-thirds of the seats in the Legislative Council; Fatah is the second biggest party.

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Hamas spokesman in the Gaza Strip, Sami Abu Zuhri, told reporters that during the "positive meeting" with Abbas the Islamic movement has nominated Haniyeh for the premiership, Hamas' website reported.

Hamas has sought a national unity government ever since it won the January elections by an overwhelming majority. It has since failed to come to terms with Fatah and the other factions.

Now, too, it is unclear whether there will be smooth sailing until the new government is sworn in. According to Abbas' aides there is no agreement yet on how many seats each party would have in the new Cabinet, let alone which portfolios each side would hold. There will be an attempt to bring in other parties represented in the Legislative Council.

Fatah and Hamas agreed the government would be based on what has become known as "The Prisoners' Document," a national reconciliation plan that prisoners from the various factions held in Israeli jails concluded in May. The prisoners, jailed for fighting Israel, are highly respected in the Palestinian street.

Their document talks of establishing an independent Palestinian state in "all the territories occupied in 1967" which means the West Bank, the Gaza Strip and East Jerusalem. It talks of focusing the resistance to Israel "in the occupied territories of 1967" which would mean not inside Israel proper.

Abbas would be the one to negotiate with Israel, as he is chairman of the Palestine Liberation Organization. The Oslo accords that launched the peace process, and provided the basis for forming the Palestinian Authority, have been signed with the PLO.

To read the full article please visit United Press International's website.