The Palestinian Prime Minister has condemned the United States and the EU for cutting direct financial aid.
Ismail Haniyeh says his government will not bow to foreign pressure to recognise Israel and renounce violence although the Palestinian Authority is facing financial collapse.
Speaking at a festival for Children’s Day he described the EU and Washington’s decision as “unjust and unfair”.
“We will not give in to this blackmail or give up our rights and principles,” he added.
The European Commission’s move to end direct financial aid must be ratified by foreign ministers’ meeting in Luxembourg on Monday.
As Haniyeh stood firm on his refusal to moderate his government’s policies,Israel stepped up pressure with a second deadly air attack against militants in two days.
Two gunmen from the al-Aqsa Martyrs Brigades were killed as they drove in their car after allegedly firing rockets into Israel.