Palestinian unity talks in Cairo end with no deal

Rival Palestinian groups have adjourned their reconciliation talks in Egypt without a breakthrough on the shape or agenda of a national unity government, one participant said on Thursday.

Wasil Abou Youssef, secretary-general of the Palestine Liberation Front, told Reuters another round of talks was planned soon.

The groups agreed on Sunday to hold presidential and legislative elections by January 2010 but remained deadlocked over the key issue of forming a unity government that would prepare for the polls.

Diplomats and analysts see the success of the Egyptian-sponsored talks as key to reuniting Palestinians after 21 months of schism between Hamas-ruled Gaza and the West Bank, where the Fatah group of President Mahmoud Abbas holds sway.

Fatah and Hamas, the largest two Palestinian groups, differ fundamentally on how to deal with Israel. Hamas believes in armed struggle, though it is willing to consider a truce, while Abbas backs negotiations Israel.