Palestinian President, Mahmoud Abbas, said on Saturday that talks for
the formation of a National Unity Government have collapsed back to
square zero. The statements of Abbas came after the Palestinian Prime
Minister, from the Hamas movement, said that the movement will not
recognize Israel.

The Hamas-led Palestinian government rejected a proposal for ten-year truce with Israel if Israel stops its attacks and withdraws from the occupied territories.

The statements of Abbas came during a press conference in Cairo on Saturday. “we are back to square zero”, Abbas stated.
Meanwhile, Dr. Mahmoud Zahar, the Palestinian Foreign Minister and one of the senior leaders of Hamas, said that the movement will not participate in any government that recognizes “the enemy”. 

Abbas said that the Palestinians will not agree to any solution that does not include a full Israeli withdrawal from the occupied territories since 1967, including the east of Jerusalem.

During his speech at the United Nations on Thursday, Abbas said that the national unity government would recognize Israel.

On Saturday, during a visit to Cairo, Abbas said after a meeting with the Egyptian President Hosni Mubarak, that "backtracking took place" on the negotiations, Israeli online daily Haaretz reported.