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The Hamas-led Palestinian government has agreed to form a government of national unity in a bid to break the crippling sanctions against the Palestinians, which has seen the standard of living plummet to starvation point. The move, announced by Palestinian President Mahmoud Abbas and Prime Minister Ismail Haniyeh, has been designed to allay concerns about the Hama-led government. For seven months the territories have been starved of funds and much needed aid, due to a western boycott, following the election of the Hamas government earlier this year. To discuss how will the government be formed and whether it improve prospects for peace with Israel, Dr Andrew Vincent, Middle East Expert with Macquarie University, spoke earlier to Erica Vowles.

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