The conflict between Fatah and Hamas has destabilised the already volatile Palestinian political scene but a settlement involving a unity government may be close at hand, writes Erica Silverman Fear hung over the Gaza Strip on Friday evening as Palestinians braced themselves for renewed internal clashes between Fatah and Hamas, forecasted after Interior Minister Said Syiam announced Palestinian Authority police, with Hamas Executive forces in reserve, would end violent protests by Fatah-affiliated security forces on Saturday. Unexpectedly, "black Saturday" turned out a "white Saturday," declared Khaled Abu Hilal, Interior Ministry spokesperson, describing Saturday's torrential rain as a peaceful blessing. "We have reached a national consensus on the highest level [between Fatah and Hamas] that conveys a message to all Palestinian citizens the situation is under control," said Hilal. As Gazans began pre-holiday shopping in Gaza City last week in anticipation of Eid Al-Fitr, scores of angry PA police officers along with Fatah youth took to the streets blockading roads with flaming dumpsters and firing weapons in the air, protesting unpaid salaries. Eventually businesses were forced to close. Government employees have gone unpaid for nearly eight months after Israel decided to withhold $54 million in monthly tax revenue owed to the PA as punishment for Hamas's electoral victory. The stench of burning tyres lingered in the air, reminding government employees, like teachers and healthcare workers who were paid via the European Union Temporary International Mechanism (TIM), that there were thousands of security officers who were left empty handed. The TIM is an emergency means to alleviate the humanitarian crisis borne from the economic embargo against the Hamas-led Palestinian government. Factional leadership has acknowledged if a consensus is not reached for a national unity government between Fatah and Hamas, the alternative will be an escalation of violence. The Israeli occupation is the common denominator," said Hilal, trying to convince Fatah and Hamas members to deal with their differences responsibly, to avoid bloodshed. "We need a cultural revolution within the second and third generations of Fatah and Hamas so they can work together," said government spokesperson Ghazi Hamad. The top level leadership of the police and the executive Force has demonstrated their ability to cooperate, but on the ground the forces are still largely in opposition. Some of the police personnel refuse to deal with the Executive Force, after instructions from the Fatah leadership, according to Hilal. "It is not easy for Fatah to return to power and it is not easy for Hamas to continue without Fatah," a Hamas official told Al-Ahram Weekly on condition of anonymity, asserting an agreement for a national unity government will be reached in the coming days. President Abbas is convinced the government cannot be led by Hamas and satisfy the Quartet's (the US, EU, UN and Russia) principles, and Hamas is unable to recognise Israel. Hamas's solution is to select a new independent prime minister that "will only speak for the national government, and will not express the official position of Hamas," said the official, anticipating this will satisfy the Quartet and end the economic embargo. Neither Hamas nor Fatah will choose prominent leaders from the organisations to serve in the new government. Instead it will be comprised of a mix of politicians and specialists, although Hamas does not support a technocratic government, warning the security forces could become unwieldy. The primary goals are to end internal conflict, rebuild the economy, increase investment and ameliorate the security crisis, particularly in Gaza. The gross domestic product (GDP) of the Palestinian Territories dropped from $4.04 billion to $2.9 billion in the past year, a decline of 28 per cent, while investments dropped by 60 per cent, from $1 billion to $400 million, in the same period, reported chief Palestinian negotiator Saeb Erekat this week. The new government will respect decisions taken by the Arab League and the PLO, international legitimacy, the terms of Abbas's speech before the legislature in February, and a Palestinian "state according to the 1967 borders and not more," said the Hamas official, but the government will not accept the Oslo Accords. This will allow the president to start the peace process with Israel and to negotiate. It will not be a Hamas government, since the number of Hamas ministers will be limited to seven or eight, and will focus on internal affairs such as health and education, the Hamas official said, adding that Quartet officials have indicated they will welcome the new government. The EU fears Gaza is near collapse, and if the US can recognise the Lebanese government including Hizbullah, they may recognise a Palestinian government including Hamas. Israeli Prime Minister Ehud Olmert told the Knesset Foreign Affairs and Defence Committee on Monday the Israeli army will expand its operations inside Gaza. Meanwhile, Israeli incursion into Gaza, purportedly to halt the launching of Qassam rockets into Israel and to secure the recovery of an Israeli soldier captured by Hamas, continues after more than four months. Olmert told the committee that 300 militants have been killed in the course of the army's invasion into Gaza over the past four months. However, 330 Palestinians have been killed by Israeli forces since 25 June, more than 208 of them civilians and 62 children, and 1,122 have been injured, including at least 315 children, four medics and six journalists, according to the Palestinian Center for Human Rights in Gaza City. A Hamas delegation arrived on Monday in Cairo to meet with Egyptian chief of intelligence Omar Suleiman to discuss the fate of the Israeli soldier and the formation of a unity government. Haaretz, the Israeli daily, reported last Sunday that Egypt deployed thousands of troops along the Gaza-Egypt border after reports were released that Israel intended to bomb tunnels said to be used for smuggling weapons into Gaza. According to a senior official from the Egyptian political delegation in Gaza, as of Sunday evening no troops had been deployed. Egyptian soldiers along the Gaza-Egypt border are not from the army, but from the police, and were moved from Al-Arish to Rafah only, said the official. 750 Egyptian troops can be stationed along the Philadelphi Corridor, according to the present agreement between Egypt and Israel.