Is the Israeli-Palestinian peace process dead? One month after the Palestinian Legislative Council elections, many commentators see the process as moribund and the Palestinian Authority as irrelevant. Hamas' surprising January 25 election victory may have set back the peace process and the emergence of a Palestinian political entity for years.

Why the pessimism? Indeed, there has not been a massive upsurge in terrorism after the Hamas victory. According to Yoram Gabbay, a former member of the Israeli peace negotiating team, Hamas agreed to a period of calm so that they could get their house in order. "The considerations that brought Hamas to agree to a cease-fire are as follows: as the party in power, Hamas is committed to providing its nation with health, education, and welfare services, and to reduce corruption. These goals require a fairly calm security situation and financial resources," Gabbay said.

Khaled Meshaal, the leader of the Hamas Movement, has stressed that he is still committed to a cease-fire, and the "ball is in the court of Israel" as to how long it lasts. Meshaal, based in Damascus, and the Hamas leadership have called for an end to Israel's targeted assassinations and a release of "political prisoners" for the period of calm to remain. What the Palestinians call "political prisoners" are actually terrorists and their commanders.

Sounds Reasonable, But No One Believes It

The Hamas demands may sound reasonable to some, but not to Israeli, American, and European diplomats and experts who continue to see Hamas as a terrorist organization.

Meshaal is known for his extremely hardline opinions and absolutely refuses to recognize Israel. In fact, Meshaal said that Hamas' only interest is to destroy Israel. Speaking last week at a memorial gathering for a deceased Palestinian politician, Meshaal said, "Being in power is only a means to an end for Hamas, power is not our ultimate goal."

The Hamas leader reiterated his belligerent stance: "We and the Zionists have a date with destiny. If they want a fight, we are ready for it. If they want a war, we are the sons of war. If they want a struggle, we are for it to the end," Meshaal declared. "We have more stamina than Israel and we will defeat it, God willing."

Analysts point to other terrorist organizations, such as the Islamic Jihad or Fatah, taking over for Hamas' terrorists while the new Palestinian leaders take a breather from the active terror campaign. On Tuesday a suicide bomber from Islamic Jihad was intercepted by Israeli security forces on the way to Tel Aviv. Click to see video news account.

The international community has set three criteria for Hamas before it can receive recognition and help. UN Secretary-General Kofi Annan, on behalf of the Middle East Quartet, creator of the "Road Map" for the peace process, has made three demands of Hamas: recognize Israel, observe all international agreements signed by the previous Palestinian leadership, and end violence against Israel. Meshaal and many Hamas leaders have repeatedly stated that Hamas will do none of the above.

Emergency Funding Continues

The European Union (EU) recently signed a deal with the United Nations granting $78 million in urgent aid for Palestinians. EU External Relations Commissioner Benita Ferrero-Waldner signed the emergency aid which is designated for education, health, and social services for Palestinians in the Gaza Strip and the West Bank.

But even the EU aid is not likely to continue once Hamas is officially in power. The emergence of an Islamic Hamas government may jeopardize up to 80 percent of the EU's $609 million annual aid for Palestinians once they are led by a group that is sworn to destroy Israel, EU officials say. There is a worry amongst many in the West that Palestinians may look to countries like Saudi Arabia and Iran. Just last month Iran transferred $1.8 million to the Islamic Jihad, Israel's Defense Minister Shaul Mofaz revealed this week. The fear is that being financially dependent on these nations will further radicalize Palestinian positions.

Is a Hamas Government on Its Way?

A Hamas-led Palestinian government became more of a reality this week as a cabinet was presented to PA Chairman Mahmoud Abbas by Prime Minister-designate Ismail Haniyeh. The cabinet list consisted solely of Hamas members. The new lineup includes five professors from an-Najah University in Nablus and a number of independent academics closely associated with the Islamic movement.

The post of foreign minister is second in importance to that of prime minister. After all, he (Hamas is unlikely to ever appoint a woman to the post) is the face and voice of the Palestinian government to the world. Mahmoud Zahar is the Hamas candidate for the post. He is "adamantly opposed to any softening of Hamas' position that Israel should be destroyed," one newspaper reported this week. "Zahar is known for his fiery rhetoric and vocal support for the organization's use of suicide bombings. Zahar has long said that all of historical Palestine is holy to Islam and must be liberated," the paper continued. "From Israel's point of view, Zahar as foreign minister is simply a symbol of what Israel faces with Hamas at the helm."

Fatah, the group founded by Yasser Arafat that led the Palestinians for 40 years, did not join the new cabinet because it is unhappy with the coalition guidelines, explaining that it cannot join a government that does not accept the "strategic" principle of negotiating with Israel. Other factions in the PA that refused to join the coalition did not insist on negotiations, but wanted the basic principles to mention the Palestine Liberation Organization and its status as the representative of the Palestinian people, as well as the international decisions regarding a resolution of the conflict and the establishment of a Palestinian state