RAMALLAH, West Bank, March 17 (Reuters) - A new Palestinian national unity government approved by the rival Fatah and Hamas factions won a confidence vote from parliament on Saturday. Here are answers to some questions about the new cabinet: WHY WAS IT FORMED? The previous Hamas-led government that took power after the Islamist group won elections in January 2006 was hamstrung by the refusal of Israel and Western powers to deal with an administration that would not recognise Israel, renounce violence and accept past peace deals with the Jewish state. Clashes between forces loyal to Hamas and President Mahmoud Abbas's secular Fatah faction killed over 300 people in the past year, prompting fears of civil war. The international embargo on direct aid to the Palestinian Authority meant public sector salaries were not paid in full, worsening an economic crisis. Fatah and Hamas agreed at Saudi-brokered talks in Mecca on Feb. 8 to halt their infighting and form a unity government. WHAT IS ITS MAKE-UP? The cabinet has nine portfolios for Hamas, six for Fatah, four for leftwing blocs and five for independents. Ismail Haniyeh of Hamas remains prime minister, with Azzam al-Ahmad of Fatah as his deputy. Key portfolios such as finance, interior and foreign affairs were given to non-Hamas members in a strategy designed to end or ease the international embargo. WHAT ARE ITS MAIN CHALLENGES? Ending internal fighting and removing the embargo imposed by the Quartet of Middle East mediators -- the United States, the European Union, Russia and the United Nations. It is not clear whether the government will be able to overcome its rivalries and work as a genuine coalition with a chance of persuading international donors to resume direct aid. The government's platform falls short of the Quartet's demands, but it does pledge to respect past peace deals. It is not clear whether it will endorse an Arab peace plan that calls for Israeli withdrawal from all occupied Arab land and creation of a Palestinian state in return for peace with all Arab states. The plan may be re-launched at an Arab summit in Riyadh which Haniyeh and Abbas will attend later this month. HOW LONG WILL IT LAST? Few Palestinians expect the government to last until the next scheduled parliamentary elections in three years' time, but much depends on whether it can halt violence, erode the embargo and present a united front on making peace with Israel. WHAT IS WORLD'S REACTION? Israel has vowed to boycott the unity government, just as it shunned its Hamas-led predecessor, while maintaining direct contacts with Abbas. It wants the release of an Israeli soldier captured near Gaza in June as well as acceptance of the Quartet conditions before it will consider modifying its stance. Washington has promised to continue to work with Abbas but has reserved judgment on the unity government. U.S. sanctions on banks dealing with the Palestinian Authority deterred them from transferring money to the previous government.The European Union appears divided, with some members such as France signalling that the embargo should be eased.
