The events of June 2007 marked the start of political fragmentation among Palestinian factions, revealing the image of a deeply divided and highly unstable political situation. On the one hand the legal aspects of the crisis show the nature of political deadlock, harshly positioned between external pressure and tough internal bargaining, whereas on the other the political argument appears to be more intricate, with no practical solutions in the long term. Reforming the Palestinian administration, with a progressive detachment of the institutions from their dependence on the movement, can have positive effects on managing the situation in the short term, but has little effectiveness on the whole political system. Instead, looking at the historical paths of Fatah-Hamas relations allows us to consider how the entire Palestinian national movement can be seen to be divided into different stages, in which institutionalization, negotiation and radicalization have alternated. Fatah-Hamas relations represent one such stage, in which a power-sharing mechanism must be found in order to solve the main issues. As regards the peace process, even though the status quo strategy still seems the best option for all the actors involved, prospects for a limited agreement in the short term are now appearing.