Oslo Agreement
After the signing of the Oslo Peace Accords in 1993, Habash and the PFLP again broke completely with Arafat, accusing him of selling out the Palestinian revolution. The group set up an anti-Arafat and anti-Oslo alliance in Damascus, for the first time joined by such non-PLO Islamist groups such as, Hamas and the Palestinian Islamic Jihad, which had grown to prominence during the First Intifada. After finding the position sterile, with Palestinian political dynamics playing out on the West Bank and Gaza areas of the Palestinian National Authority (PNA), Habash carefully sought to repair ties to Arafat, and gain a hold in post-Oslo politics without compromising PFLP principles. However, there is no indication that he ever accepted the two-state solution. This balancing act could not save the PFLP from being eclipsed by the militant Islamist factions on the one hand, and the resource-rich Fatah with its PNA patronage network on the other. The significance of the PFLP in Palestinian politics has diminished considerably since the mid-90s. The PFLP participated in the Palestinian legislative elections of 2006 as Abu Ali Mustafa won 4.2% of the popular vote.
In the late 1990s, Habash's medical condition worsened. In 2000 he resigned from the post as Secretary-General, citing health reasons. He was succeeded as head of the PFLP by Abu Ali Mustafa who was assassinated by Israel during the Second Intifada. Habash went on to set up a PFLP-affiliated research center, but he remained active in the PFLP's internal politics. Until his death he was still popular among many Palestinians, who appreciate his revolutionary ideology, his determination and principles, the rejection of the Oslo Agreements and his intellectual style.
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