Warring Palestinian factions yesterday agreed to bury the hatchet and reached an agreement on forming a unity government during the all-faction reconciliation talks in Cairo.

Hamas spokesman Fawzi Barhoum informed reporters in Gaza that Hamas-allied groups and Fatah had reached an agreement on forming a transitional unity government.

In a statement sent to reporters from Cairo, Barhoum said participants at the Cairo meeting have agreed on forming a government “whose specific job will be to hold elections before the end of the year.”

Earlier in the day, Egypt’s official MENA news agency quoted Wasel Abu Yusuf, the secretary-general of the Palestine Liberation Front (PLF), as saying that the higher reconciliation committee agreed that the unity government would be transitional in nature.

The mission of the proposed government will end with the holding of Palestinian legislative elections before Jan. 25, 2010, said Abu Yusuf.

Leaders of 13 Palestinian factions have been holding intensive dialogue on controversial issues related to forming a government, security, elections, reconciliation and reforming the Palestine Liberation Organization (PLO).

“We agreed on the nature of the upcoming government. The deal is to form a temporary unity government and work on preparing for the upcoming elections,” said Barhoum.

Meanwhile, in a sign of shifting European attitudes toward Hamas, a delegation of the movement’s Syria-based politicians is planning a European tour.

Ali Baraka, a senior Hamas leader, said several European countries had extended invitations to the Palestinian resistance group. He, however, declined to name the countries or the exact dates of the visit. “The movement is coming to the realization that members of the European Union have a different stance on the Palestinian issue than that of the United States,” Baraka said.

“These visits mean that the European Union is reconsidering its policy toward Hamas, and it is starting to listen to the opinion of Hamas,” Baraka added.

Baraka was speaking ahead of a meeting between a group of EU lawmakers from Greece and Italy and Hamas chief Khaled Meshaal in the Syrian capital yesterday.