The European Union has joined the United States in threats to withhold aid if Hamas participates in a Palestinian government.

Javier Solana, the EU foreign policy chief, has said tens of millions of dollars of aid to the Palestinian Authority could be halted if Hamas wins elections next month and fails to renounce violence.

Hamas has swept municipal elections in several West Bank cities last week, reflecting Palestinian dissatisfaction with the ruling Fatah party.

The strong showing has raised the possibility that Hamas could win the Palestinian parliamentary elections on 25 January.

EU aid planned for next year is said to be 312 million US dollar.

US resolution

The US House of Representatives passed a resolution on Friday stating that American support for the Palestinian Authority would be placed at risk by any Hamas participation in government.

Israeli officials have insisted that Mahmoud Abbas, the Palestinian president, should bar Hamas from the parliamentary election, saying that a victory by the group will scupper peace prospects.

The Palestinians rely on the international community for roughly half of their annual operating budget.

The international community has, however, been urged by Palestinian groups, including Fatah, to stay out of internal Palestinian affairs and have backed Hamas's right to contest the elections.

Hamas ready to join PA government

A Hamas leader has said the movement is interested in joining the Palestinian government after upcoming parliamentary elections.

Sayid Siyam, a Hamas leader in the Gaza Strip, said on Sunday that the group believes that entering the government will allow it to push its agenda of promoting reform and ending corruption.

In particular, he said, Hamas has its eyes on some of the Palestinian security branches, which he called "one of the areas of corruption" and "an object of our interest to reform".

Cease-fire

"Martyrdom operations is one of our tools. It is not the only means that we have," he said.

Hamas leaders say privately that they are ready to end such attacks and continue a cease-fire with Israel to focus on politics. They say, however, that such decisions will come after the election

PHOTO CAPTION

Javier Solana (L) talks with Mahmoud Abbas in Gaza December 18, 2005. (REUTERS)