Israeli Public Radio Palestinian president calls on Europe to recognize the Palestinian state During his meeting with EU Foreign Minister Catherine Ashton, the President of the Palestinian Authority (PA), Mahmoud Abbas, demanded the EU recognize the Palestinian state on 1967 borders. Israeli Public Radio quoted the chief of the Palestinian negotiators, Saeb Erekat, as saying that the PA demanded the EU send a message to the U.N. Secretary General, Ban Ki Moon, to discuss the issue in the U.N. Security Council, clarifying that Ashton did not oppose or support the idea. Erekat added that Mr. Abbas told the EU official that Palestinian reconciliation is the only way to achieve the two-state solution. Yediot Ahronot Hamas refused a new draft agreement with Israel to exchange prisoners with Shalit High-profile German sources revealed to Yediot Ahronot that Hamas' militia refused a draft agreement to exchange prisoners with Israel, included releasing 1,000 Palestinian prisoners in return for the Israeli soldier Gilaad Shalit. The sources added that German negotiators went to the Gaza Strip two months ago and offered the draft agreement to Hamas, clarifying that the political leadership of the Islamic movement approved the proposed agreement while al-Qassam Brigades, the movement's militia, refused it. It's important to mention that Hamas conditions releasing 1,500 Palestinian prisoners, including 450 prisoners who face tough rules, to release Shalit. Maariv Tel-Aviv plans to re-suspending the PA's money due to the formation of a national unity government Maariv said that Israeli Finance Minister Yuval Steinitz intends to suspend the tax money of the PA after the formation of the Palestinian national unity government in Cairo on Tuesday. Marriv said the Israeli minister expressed his anxiety, in closed sessions, that Hamas could benefit from the money in adopting actions against Israel. The Israeli minister added, "If the new Palestinian government includes members or representatives of Hamas, Israel should suspend transferring the tax money to the PA." The Hebrew newspaper said that Steinitz intends not only suspending the tax money but also to obtaining an official decision from the Israeli government to prevent transferring any money to the PA. Steinitz prevented transferring the money to the PA 45 days ago after the conclusion of the reconciliation agreement between Fatah and Hamas, signed in Cairo on May 4, while the decision has been revoked due to the international pressure on Israel. Haartez Barack: Assad's regime will not continue in power for a long time The Israeli Defense Minister, Ehud Barack, said that Assad's days in power are numbered and his regime will continue in power for only months. He added, in a press conference with the French media during his visit to Paris, that the Syrian president uses excessive force against his people. Barack clarified that overthrowing the Syrian regime will weaken both Iran and Hezbullah so Israel should be optimistic of any potential change in the Syrian leadership. The minister stressed the necessity of tightening the international sanctions imposed on Iran, clarifying that the Iranian nuclear program will reach the point of no return in few months. About the future of the peace process between Palestine and Israel, Barack said the future Palestinian state should take into account that the Jewish areas in East Jerusalem and the Israel settlements in the West Bank will be a part of Israel.