a small dose of reality

JERUSALEM (AFP) - Acting Israeli Prime Minister Ehud Olmert and German Chancellor Angela Merkel made a joint pledge not to deal with the radical Islamist Hamas until it recognised

Israel's right to exist and renounced violence.

Merkel met Olmert in Jerusalem shortly after her arrival on a two-day trip which will also see her hold talks on Monday with beleaguered Palestinian leader Mahmud Abbas, whose

Fatah movement was trounced by Hamas in last week's Palestinian general election.

After talks which focused on Hamas's landslide victory, as well as

Iran's controversial nuclear programme, Olmert said they had reached a common approach on on how to deal with the Islamist group.

"We reached clear agreements about the principles which should guide the international community with regard to the future of the

Palestinian Authority," he said at a joint press conference with Merkel, who will not be meeting any Hamas officials.

"You, like me, believe that there is no way to reconcile with terror and there can be no negotiations with organisations or bodies or even governments who are involved with terror and who are not willing to recognize the state of Israel," he told Merkel.

"I really appreciate this joint approach which is shared by countries in Europe and the United States," Olmert said.

Hamas has been responsible for most anti-Israel suicide attacks in the past five years, while Israel has carried out targeted killings of the movement's leaders and its militants.

Merkel for her part agreed that Hamas could not be granted international legitimacy just because it won the election.

"Cooperation between Israel and the Palestinians can only be possible if they (Hamas) meet three conditions -- the renunciation of terror and violence, recognition of Israel's right to exist and that they accept all existing international agreements," said Merkel.

"This is Germany's position and we will also communicate this to the EU."

Unless Hamas changed its stance towards Israel and the peace process, it would be "unthinkable" for the

European Union to continue supplying funds to such a Palestinian leadership, Merkel said.

"We must wait to see how Hamas acts and if it doesn't change its positions, it would be unthinkable that such an authority be directly supported by European Union funds," she said, stressing that Hamas was on the EU's terror blacklist.

The 25-nation bloc is the largest financial donor to the Palestinian Authority and also one of the four sponsors of the stalled Mideast peace roadmap.

Asked if there was any chance of Germany holding talks with Hamas before it met the conditions, Merkel replied: "Absolutely not."

"We must make it very clear to Hamas that we have very clear principles," she said.

The German leader also spoke strongly against any Iranian attempt to acquire nuclear weapons, warning that such a situation would mean Tehran posing a threat not just to Israel, but to the entire world.

"We spoke about the situation in Iran and the threat to Israel in relation to Iran arming itself" with nuclear weapons, Merkel said after the talks in Jerusalem.

"It is not only a threat to Israel but for the entire democratic world."

Merkel also condemned recent remarks by hardline Iranian President Mahmoud Ahmadinejad who has called Israel a "tumour" that should be "wiped off the map" and claiming the Holocaust perpetrated by Nazi Germany was a Western invention used to justify the creation of Israel.

"The statements made by the Iranian president are unacceptable to Germany. We cannot accept them," she said.

Iran insists its nuclear programme is completely legal and merely designed to meet its energy needs. Israel, however, believes Tehran is on a drive to equip itself with nuclear weapons.

Israel has never publicly admitted possessing a nuclear arsenal of its own but is believed to have at least 200 atomic warheads.