France Could Recognize Palestine by 2012

Israel threatens to cut off peace talks while calls for statehood mount.

French President Nicolas Sarkozy, never one to avoid bold statements, said France could recognize Palestine as a state by the end of the year if peace talks with Israel cease. If he follows up on his word, France would be the first western nation to consider the Palestine territories – the West Bank and Gaza Strip – an official country. Sarkozy's comments come as Hamas and Fatah, the two main political factions in Palestine, signed an agreement this week to put aside years of violence to merge and work together for statehood. Israeli Prime Minister Benjamin Netanyahu has said his country will not negotiate with any party that includes Hamas, a militant Islamist organization.