Palestinians Deadlock on Forming Unity Government

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Talks to form a new Palestinian government have broken down between Fatah and Hamas, which now runs the Palestinian Authority's ministries.

A unity government of technocrats may have signaled a way out of the political deadlock and crippling economic sanctions imposed by the West after the Islamists won January's elections.

President Mahmoud Abbas, the leader of Fatah, has hinted he could take bold steps if talks continue to falter, including dissolving the government, declaring a state of emergency and calling a referendum on his program or new elections.

The threat of dramatic measures has come amid a flurry of street violence between Hamas and Fatah loyalists.

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