U.S. stymies coalition, Palestinian leader says

? Prime Minister Ismail Haniyeh of Hamas on Thursday accused the United States of undermining efforts to form a new coalition government and called on Europe to take the lead in lifting international sanctions against the Palestinians.

European diplomats visiting the West Bank indicated formation of a unity government with Palestinian moderates could lead to restoration of vital foreign aid.

Haniyeh spoke a day after Secretary of State Condoleezza Rice said the new Palestinian government would have to accept international demands to renounce violence and recognize Israel.

Hamas, which has controlled the Palestinian government since March, caved to intense international pressure this week and agreed to share power with moderate President Mahmoud Abbas’ Fatah Party.