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Source: http://www.haaretz.com/hasen/spages/676173.html
Israel, Germany to Stop Fund Transfer to Hamas-Led PA
(Ha'aretz) Aluf Benn - Israel will not transfer NIS 200 million in January tax revenues earmarked for the Palestinian Authority, a senior government source in Jerusalem said Sunday in the wake of Hamas's victory in Palestinian parliamentary elections last week. The funds consist of value-added tax and customs revenues. "We are not prepared in any way or shape [that] money which the Israeli government transfers will come under control of murderous elements who are interested in the destruction of Israel," said Acting Prime Minister Ehud Olmert at a joint press conference with visiting German Chancellor Angela Merkel. "A Palestinian Authority [with Hamas in power] cannot be directly supported by money from the EU," Merkel said. "Germany would not hold talks with Hamas until it recognizes Israel's right to exist," she added.