1 of 2
J. David Ake, Associated Press
European Union Ambassador to the US Joao Vale de Almeida answers questions during a newsmaker interview at the Associated Press in Washington, Monday, June 2, 2014.

WASHINGTON — The West is prepared to work with a new Palestinian government, U.S. and European Union officials said Monday, despite Israeli concerns it gives power and influence to the radical Hamas movement.

Israel maintains Hamas is a terrorist group, and has angrily refused to work with a Palestinian unity government that would include Hamas members.

On Monday, Palestinian President Mahmoud Abbas swore in a new government that is made up of technocrats backed by Hamas and the rival Fatah political faction. Hours later, Secretary of State John Kerry called Israeli Prime Minister Benjamin Netanyahu to relay U.S. willingness to work with the new leaders.

Separately, in an Associated Press interview, the EU's top envoy to the U.S. said Europe was prepared to work with a government backed by Hamas.

"We never said we would not," Ambassador Joao Vale de Almeida said. "It's a question of substance rather than the question of composition of the government."

Still, Vale de Almeida said Europe was insisting that the new Palestinian government recognize the right for Israel to exist and the need for a negotiated peace agreement with the Jewish state. Israel broke off nearly nine months of peace negotiations in April after Abbas endorsed the tentative unity government to end seven years of separate leadership in the west Bank and Gaza Strip.

"We are in favor of Palestinian recognition," Vale de Almeida said. "We think it's an important element in the process to bringing a long-term solution — but not at any price. It has to be based on respect for a certain number of values."

He said the EU would watch to see how the new unity government moved forward — a position echoed by State Department spokeswoman Jen Psaki.

Psaki said the U.S. was prepared to continue sending U.S. foreign assistance to the Palestinian Authority and what she described as the "interim technocratic government."

The decision would almost certainly draw criticism from Israel and its supporters in Congress and elsewhere.

"We will continue to evaluate the composition and policies of the new government and calibrate our approach accordingly," Psaki said.